RAC Sold

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Thu 23 Jun 2011 11:37
RAC Sold - meldrew

Aviva Plc has sold the RAC to Carlyle Group (global asset managers!) for one billion pounds.

I wonder what that will do to our subscriptions? The RAC business model already had me worried as a customer as they are working to a NCD insurance model with no real chance of significant liabilities. The worst expense they can incur is a call out wheras a real insurer could pay out millions in public liability for one incident.

Anyone recommend a good alternative ?

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Fri 24 Jun 2011 11:45
RAC Sold - monian

Whilst I can offer no salient or intuitive comment on this matter other than to share meldrew's concerns about the RAC going down the NCD route, an interesting incident occurred to me yesterday regarding RAC and its charging policies.

My RAC subscription is due to expire on 4/7/11 and the reminder arrived showing membership cost £206.50 less "membership savings" of £45 - whatever that is. Fee for the next year was £161.50.

Having not had occasion to call out the RAC in the last 12 months but, then having an realistic acknowledgement of ever increasing costs, I was mildly incensed at the increase in cost.

I trundled around the net on comparision sites and was particularly erked by discovering that, as a new customer to the RAC, 'like for like' cover could be gained for £132. in outrage,(well about as outraged as I ever get), I all but was to commit my family's automotive conveyances to Green Flag for the next year.

By coincidence I received a call from the RAC last evening asking me whether I was going to renew but I told him that I was going to go elswhere because of cost.and advised that I could save close on £30 by just being a new customer. What price loyalty heh?

Without any hesitation and coercion from myself, he immediately offered me the same cover for £108 which I accepted. He also told me that when the next year's subscription came along it would also have an artificially high price and to 'phone into the RAC to complain about that and they would reduce the price to keep me in their ranks.

Frankly I find this pricing structure (or lack of it) to be bizarre and there are implications for backroomland readers who are RAC members also.

Discuss !

Ian

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Fri 24 Jun 2011 12:09
RAC Sold - Falkirk Bairn

Gem breakdown cost me £65 (pay and reclaim), up £1.00 since last year.

Last call to Green Flag was 6/7 years ago and the bill climbed to £120 (includes reduction on cancelling of £20 IIRC)

Used GEM early on this year - paid and claimed and the cheque took 3 days to come - well b4 the Credit card bill ate.

5 stars for GEM & their independent local garage breakdown service.

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Fri 24 Jun 2011 12:11
RAC Sold - unthrottled

Most insurances work in a similar way. A premium of ~£100 pa falls into the inertial renewal for most people-and the companies know this. Not many people will shop around to save £30 or so. But you'll pick the cheapest like for like cover when selecting a new policy. As a way of doing business it's pretty unpleasant-especially for the unfortunate people who work in their call centres.

If marketers/directors had to spend a month or so in the call centres the practice would stop.

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Fri 24 Jun 2011 12:26
RAC Sold - meldrew

Discuss?! How long have you got? I too am sick and tired of this daft renewal pricing that has to be argued with all the time. Still with the RAC but only under sufferance having lost the family NCB with a pothole/tyre incident in Wales last year,

Scottish Power upped my gas and electricity by 50 % each last week ( without mentioning the cheaper October 2012 deal) so that was another argument before Direct Line send me a house insurance renewal in the next few days!

Part of my tactic is to keep them on the phone for as long as possible (free calls!) so that they cannot take any new business for an hour. Sad, but the only way I have to fight back as they are generally all the same.

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Fri 24 Jun 2011 12:42
RAC Sold - RT

I've got RAC cover as part of my new car warranty - it's worth SFA in my opinion - when the car broke down with a fault that had already been diagnosed by the dealer the RAC wouldn't allow me to request a direct recovery, I had to wait nearly 4 hours for an RAC patrol to come out and confirm what I and my dealer already knew. It was too late then to get to the dealers so I cancelled the incident.

I maintain my Green Flag cover because they'll also take my caravan even if it means a double journey to a site to pick it up and they cover accident and illness, not just breakdown. The morning after the above incident I called Green Flag, they politely "interrogated" my as to why I wanted direct recovery but readily agreed and had a flat-bed there within 40 minutes. It's good value for £89 and our second car is just £21 extra but with the same cover.

Edited by RT on 24/06/2011 at 12:43

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Fri 24 Jun 2011 17:45
RAC Sold - justadriver

I use First call, freephone or use their uk national number, 32 quid this year with 40 call out charge if within 1 mile of home, so if i don't use them i'm saving. nice polite people, colchester based. 2 years ago called them out in the freeze, car would not start, 40 minutes, taken straight to dealer. 4th year with them now, so have saved lots compared to 108 each year, and not filling some investment groups trousers. Even so there are other excellent choices online. House insurance renewal was 160, got elsewhere for less, same for car insurance. must say, had an accident in europe 15 years ago and green flag sorted it all, flew me home and transported car back to my garage. well done!

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