Article date: 2 November 2009
RAC anticipates saving fleets more than £5 million1 in garage repair bills this year alone.
The motoring organisation is helping fleets to avoid downtime and costs as its Patrols achieve record numbers of roadside repairs, an extra 26,6302 fleet vehicles this year compared with 2008, avoiding the need to attend a garage. In addition, RAC anticipates repairing 41,5003 fleet vehicles at the roadside by the end of 2009.
Without breakdown cover, the average cost for towing a broken down vehicle off the motorway is now approximately £1504 and the costs can escalate further once the tow to a garage is complete. The average price of skilled labour is currently £90.61 per hour4, which is pushing up the cost of common repairs. Fully comprehensive breakdown cover for businesses costs from £72.77 a year and includes roadside repairs with no labour costs.
Steve Whitmarsh, senior fleet partnership manager for RAC, said: “Not having breakdown cover could have significant impact on a fleet’s bottom line. In addition, financially pressured fleets opting to extend their leases should ensure they have adequate breakdown cover to avoid hefty repair bills.
“The benefits of breakdown cover are clear, as our Patrols’ expertise is keeping more company car drivers on the road. In fact, in addition to more repairs, RAC is reducing the number of repeat attendances to fleet vehicles by as many as 1,200 per month.5
“RAC is driving down the need for repeat callouts by working more closely with local garages and parts suppliers. In addition, constant innovations in the way our patrols operate mean we can save fleets time and money and get them on their way quickly again.”
Overall, so far this year, RAC has attended and permanently repaired over 1.3 million RAC members.
RAC is committed to easing the pain of a roadside breakdown. Recent improvements include:
- A new multi-fit spare wheel, which enables patrols to tow a vehicle, with a punctured or damaged wheel and no spare available, to a tyre repair centre rather than waiting for a recovery truck
- Using more local garages to repair serious faults, helping to avoid the misery of long distance recoveries associated with breaking down
- Updated diagnostic equipment to ensure faults are found faster and on a greater range of vehicles
- An improved system for sourcing parts so patrols can obtain and fit spare parts whenever and wherever they need them.
For more details on breakdown cover and costs visit www.racbusiness.co.uk
For more information please contact:
Sam Bramwell at Staniforth on 0161 919 8024/ 077381 96667 or Vicki Burn on 01603 684 224/ 07800 692 909.
Notes to editors:
1 £5 million = £122 cost saving calculated using an average breakdown cost of £195 (without cover) minus annual RAC membership, including recovery, of £72.77. This membership covers you as a driver or passenger in any vehicle. £122 x 41,5003 = £5.063,000.
2 40% (percentage of RAC’s commercial book) x 66594/ 100 = 26,637 fleet vehicles.
3 40% (percentage of RAC’s commercial book) x 104000/ 100 = 41, 500 fleet vehicles.
4 Based on a standard £150 Highway Agency recovery fee off a motorway and average £45.08 for 30 minutes (£90.61 per hour) labour at a franchised dealership, according to Warranty Direct (23 September 2009).
5 40% (percentage of RAC’s commercial book) x 3000 (reduction in private and fleet vehicles per month)/ 100 = 1,200 fleet vehicles.
A "roadside repair" is defined by RAC as an occasion when a member is able to drive away unaided from a breakdown.
With around seven million members, RAC is one of the UK's most progressive motoring organisations, providing services for both private and business motorists. Whether it's roadside assistance, insurance, vehicle inspections and checks, legal services or up-to-the-minute traffic and travel information - RAC is able to meet motorists' needs.
RAC is committed to providing the very highest levels of service to its members and has been ranked first for customer service by JD Power and Associates' UK Roadside Assistance Study for the last three years and the top named service organisation in the July 2009 UK Customer Satisfaction Index from the Institute of Customer Service.
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 Aviva UK Insurance. Aviva is the UK's largest insurer with a market share of around 15%.
RAC is part of Aviva, the world's fifth largest insurance group which operates in 28 countries.
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