Article date: 7 December 2007
- New partnership with The Warranty Group marks the launch of innovative RAC Warranty range
RAC has announced the launch of RAC Warranty, a new warranty range offered in partnership with The Warranty Group.
Recent research from RAC has shown dealers have several issues with warranties - 84% believe they help to sell used cars yet 30% have no specific provider; 26% want a faster response to claims; and 42% want fewer claims exclusions. Based on these findings, RAC and The Warranty Group have produced a selection of innovative warranty solutions that meet the needs of almost the entire spectrum of used car retailers.
RAC Warranty offers an extensive group of products. There is a range for FSA compliant dealers - Parts and Labour Cover at Silver, Gold and Platinum levels, GAP Loan Shortfall Insurance, GAP Return to Invoice Insurance, Tyre Insurance, MOT failure Insurance and Lost Keys Insurance. Depending on the level of warranty cover there is no exclusion to the age or mileage of the car as long as it meets minimum purchase price requirements. A breakdown recovery option from RAC will also be added soon - something that 70% of dealers consider to be a key offering.
Additionally, a new maintenance and repair product providing excellent value to consumers, but not subject to FSA regulation, has been developed which will allow a large number of dealers to add significant benefits to their ongoing customer relationships.
Daniel Burgess, automotive director, said: "We have looked very closely at the warranty market in putting together this product range and believe that the solutions we are offering are the best available to dealers.
"For example, our Platinum level Parts and Labour Cover is probably the most comprehensive used car warranty available, even covering items such as catalysts. At the silver standard, we will provide an excellent level of cover even for customers spending a modest amount on a used car.
"This breadth of product coverage, together with the reassurance of the RAC name will, we believe, have tremendous appeal in the warranty market and we expect to make an impact very quickly."
RAC and The Warranty Group have also tackled the day-to-day implementation of warranties. In the research, dealers raised this as a major concern, with 28% wanting a simpler administration process and 23% asking for a service that they can access online.
Daniel added: "As a result, we have put in place a web site that will handle all warranty administration, making the process very simple for dealers. The service levels that we have negotiated with The Warranty Group are very high and we are sure that dealers will find the system easy and effective to use, and that our attitudes to claims is very fair, as you would expect from an RAC product."
The Warranty Group is the world's premier provider of warranties and extended service plans, with operations in 33 countries and 2,100 employees. By providing underwriting, claims administration, compliance and marketing expertise, The Warranty Group is a single-source solution for manufacturers, distributors and retailers of consumer goods including cars, homes, consumer electronics and appliances. The company is well known and long established in the UK motor industry for its Motorplan warranties.
Ian Simpson, sales director of The Warranty Group, said: "The pedigree and credibility of the RAC brand with the strength and experience of The Warranty Group in this sector will make a very strong combination, we believe.
"Dealers and their customers have a very high degree of confidence in the RAC and this new offering will be an attractive proposition for them, catering to their specific needs. We are delivering a range of products that offers high quality, cost-effective warranty solutions providing clear benefits for the used car retailer and their customers."
Dealers who want to find out more about RAC Warranty should call 0208 869 7155.
RAC/HPI Press office contact:
Vicki Burn on 01603 684224/ 07800 692909 or Sam Bramwell at Staniforth 0161 919 8014.
Notes to editors:
With around seven million members, RAC is one of the UK's most progressive motoring organizations, providing services for both private and business motorists. Whether it's roadside assistance, windscreen repair and replacement, learning to drive, vehicle inspections and checks, legal and financial services or up-to-the-minute traffic and travel information - RAC is able to meet motorists' needs. RAC incorporates BSM, RAC Auto Windscreens, RAC Direct Insurance and HPI.
Aviva bought RAC in May 2005. The acquisition brings together RAC's powerful brand and customer base with the expertise and leading position in motor insurance of Norwich Union Insurance (part of Aviva). Norwich Union is the UK's largest insurer, insuring one in seven motor vehicles and with a market share of around 15%.
RAC's news releases and a selection of images are available from the internet press centre at http://www.racnews.co.uk.