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RAC car insurance

RAC, known best for its breakdown service, began selling car insurance in the late 1980s after RAC Insurance Limited began operating as a subsidiary.

How good is RAC car insurance?

Defaqto rating: 5/5 stars

In 2020, RAC Car Insurance Plus was awarded the top rating of five stars by Defaqto.

Note: Not all Defaqto products with the same star ratings have the same covers and terms.

Fairer Finance rating: 4/5 stars

Fairer Finance rates RAC Car Insurance Plus four out of five stars. Its customer experience ratings gave it a score of 57% (45th out of 55).

About RAC car insurance

The RAC now offers a wide range of car insurance services and is highly rated by expert review websites.

Comprehensive and third party policies are arranged and administered by BISL Limited and are underwritten by a panel of top insurers – Ageas, Aviva, Axa, Co-op Insurance Service (CIS), Covea, Liverpool Victoria (LV), Sabre, Saga and Zenith.

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More about RAC

RAC began life in 1897 as the Automobile Club of Great Britain, a London-based sports club whose members were also early motoring enthusiasts. By royal assent from Edward VII – another early petrolhead – it became the Royal Automobile Club in 1907.

RAC Insurance Limited was incorporated in 1989, but in 1999 the entire business was acquired by Lex Group, which changed its name to RAC Ltd in 2002, before being bought by Aviva in 2005. 

Now headquartered in Walsall in the West Midlands, RAC Ltd has been co-owned by Singapore sovereign wealth fund CIG and CVC Capital since 2015.

RAC car insurance policies

RAC provides quotes and policies for three basic levels of insurance:

  • Comprehensive

  • Third party, fire and theft

  • Third party only 

The company offers two levels of comprehensive cover. Standard RAC Car Insurance, which provides a basic level of benefits and RAC Car Insurance Plus, which extends the package of benefits available. More on this below.

Helps young and new drivers save money by rewarding careful driving. A telematics device that monitors driving habits such as speed, acceleration, cornering and braking is fitted to your car. Once the insurer has built up a picture of your driving style, significant discounts may be available at renewal.

Providing short-term cover for when you need it – anywhere between just one hour to 30 days. Temporary car insurance cover can start within 15 minutes of getting your quote.

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RAC’s multi-car insurance offers discounts of 10% on any additional cars in your household – up to three additional vehicles.

Yes. This is another short-term insurance plan offering cover while you prepare for your test, getting extra driving experience with a family member or friend.

Classic cars are usually driven less frequently, clock up fewer miles and are stored safely in a locked garage. A standard policy, therefore, may be more expensive than a classic car policy.

RAC standard car insurance cover

The top-rated RAC Car Insurance Plus policy offers the following benefits:

  • Motor legal protection – covering legal fees up to £100,000 if you pursue a compensation claim or to defend you against a claim

  • European cover – 60 days full cover when driving on the Continent

  • Uninsured driver promise – (not included on the standard comprehensive policy)

  • Vandalism promise – (not included on the standard policy)

  • Three-year repair guarantee – when carried out by an approved workshop

  • Courtesy car – subject to availability and eligibility

  • Personal accident cover – up to £10,000 (up to £5,000 on the standard policy)

  • Medical expenses – up to £250 (up to £100 on standard policy)

  • Personal belongings cover – up to £250 (£100 on standard policy)

  • Transport home after an accident – (not included on standard policy)

  • Child seat cover – (not included on standard policy)

  • Windscreen and glass cover, replacement locks and audio equipment cover

  • New car benefit – if your car is written off or stolen within a year of purchase

RAC additional car insurance cover options

Given the breadth of benefits on the Car Insurance Plus policy, there’s little left to offer in the form of optional extras, but there are a few.

For £19.99 a year, this provides round-the-clock rescue breakdown cover.

Available as an optional extra for those not selecting the Car Insurance Plus policy. It covers legal fees up to £100,000 to help recover losses and expenses following an accident that wasn’t your fault.

For £19.99 a year, this covers the cost of replacing car, home, office or any other property keys up to £1,000 per year. Cover includes replacing or repairing locks.

From £12.99 a year, this ensures you remain mobile while repairs are being carried out.

Covers up to two claims within a three-year period.

What is RAC car insurance best for?

RAC’s 100-year legacy of providing services to motorists has provided it with the platform to build a respected car insurance business. And with top ratings from review websites, RAC is clearly providing quality comprehensive cover packed with benefits in its RAC Car Insurance Plus policy.

Complaints data

The Financial Ombudsman Service received fewer than 10 car insurance complaints about RAC (that could have been a single complaint). To put that in context, 67 firms had 10 or more complaints each and those totalled 4,550 complaints. Nearly 200 firms had fewer than 10 each, sharing just 479 complaints between them.

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