RAC launches warranty, MoT and service plan product

A used car care subscription combining a vehicle warranty, annual service care plan, MOT test fee and RAC Breakdown cover is being launched this month by the RAC Dealer Network.

Called Vehicle Care 360, it takes the form of a rolling contract with equal monthly payments, providing budgeting certainty and protection against inflation.

The product will be sold through 1,200 RAC Dealer Network outlets, which is operated by the RAC in conjunction with Assurant, a Fortune 500 company with a presence in 21 countries which is the RAC’s partner in the aftersales sector.

Lee Coomber, RAC client director at Assurant, said: “Our research shows that almost half of private car owners are interested in a combined automotive product of this type.

“The perceived benefits are the high level of protection offered against unexpected motoring costs, fixed costs over the length of the subscription, and the ease of having all four products from the same source.

“We see Vehicle Care 360 as a simple and effective solution that provides the key elements needed to help the customer keep their vehicle on the road while meeting contemporary purchasing preferences by using a subscription model.

“Of course, for supplying RAC Dealer Network retailers, especially those with their own workshops, it provides significant opportunities to retain service and warranty claims work, as well as increasing the possibility of the customer returning to buy another car when the subscription comes to an end.”

Assurant’s research additionally shows that interest in a subscription is highest among 18–34-year-olds and those planning to buy their next car online, while older customers would prefer buying in-person from a dealership.

Management of the subscription will be through a new online portal and app, called Vehicle Care, which was launched last month.