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 the more than 1,200 strong RAC Dealer Network, 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 by Assurant, which was launched last month.
Lee said: “We have a comprehensive digital strategy in place for the next few years and providing online access through apps and the internet is a key element of this product offering, which we believe to be market leading.
“An important element of the appeal of using a subscription model is ease of use, and the technology we are providing makes it straightforward for customers to access all elements of the Vehicle Care 360 digitally.”
Notes to Editors
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About the RAC
The RAC, an iconic UK brand, provides complete peace of mind to more than 13 million UK private and business drivers, whatever their motoring needs. As well as its premium nationwide breakdown assistance service – with an expert branded patrol workforce attending more than two million breakdowns every year – it offers a wide range of market-leading products across insurance, legal services, vehicle inspections and service, maintenance and repair. The RAC is also at the forefront in helping drivers make the switch to electric vehicles and leads in the development of new solutions for businesses and OEMs, partnering with the best in the motoring and mobility space.
Visit the RAC website and RAC media centre.
About Assurant
Assurant, Inc. (NYSE: AIZ) is a leading global business services company that supports, protects and connects major consumer purchases. A Fortune 500 company with a presence in 21 countries, Assurant supports the advancement of the connected world by partnering with the world’s leading brands to develop innovative solutions and to deliver an enhanced customer experience through mobile device solutions, extended service contracts, vehicle protection services, renters insurance, lender-placed insurance products and other specialty products.
Learn more at assurant.com.