RAC car insurance is a UK motor policy provided under the RAC brand, offering comprehensive, third party fire and theft, and third party only cover, with options for breakdown assistance, legal expenses and courtesy car provision. Policies are underwritten by approved insurers and regulated under UK financial services law.
Contents
What Is RAC Car Insurance and How Does It Work?
RAC car insurance is arranged through the RAC brand and underwritten by selected insurers authorised by the Financial Conduct Authority. Drivers choose a level of cover, add optional extras, pay an annual or monthly premium in £, and make claims through the appointed claims handler if an incident occurs.
The product is designed for UK motorists who want flexible protection combined with a recognised roadside assistance heritage. While the RAC is widely known for breakdown services, its motor policies operate like other UK-regulated insurance contracts, subject to the Financial Services and Markets Act 2000 and FCA oversight.
Types of Cover Available with RAC Car Insurance
Understanding the structure of RAC car insurance helps you select the right level of protection for your vehicle and circumstances.
Comprehensive Cover
- Damage to your own vehicle, even if you are at fault
- Third party injury and property damage
- Theft, fire and vandalism
- Windscreen repair or replacement
This is the highest level of protection and is often competitively priced in the UK market.
Third Party, Fire and Theft
- Third party injury and property damage
- Cover if your car is stolen or damaged by fire
- No cover for accidental damage to your own car
Third Party Only
- Meets the legal minimum required under the Road Traffic Act 1988
- Covers damage or injury you cause to others
This level is typically chosen for lower-value vehicles.
How Much Does RAC Car Insurance Cost in the UK?
The cost of RAC car insurance depends on multiple UK risk factors, including your postcode, driving history, vehicle type and annual mileage. Premiums are calculated using actuarial models aligned with FCA pricing rules introduced in 2022 to prevent loyalty penalties.
Typical influencing factors include:
- Postcode risk profile – urban areas often carry higher theft or accident risk
- No claims discount – longer claim-free periods reduce premiums
- Vehicle insurance group – higher groups increase cost
- Voluntary excess level – higher excess can reduce your annual premium
Drivers can pay annually or monthly. Monthly instalments usually include interest, increasing the total payable amount.
Key Features That Differentiate RAC Car Insurance
Many motorists consider RAC car insurance because of its brand association with roadside support and its optional add-ons tailored to UK driving habits.
Breakdown Assistance Options
Policyholders may add roadside, recovery or at-home breakdown cover, aligning insurance and recovery under one provider.
Optional Extras
- Motor legal protection
- Key replacement cover
- Courtesy car upgrade
- Protected no claims discount
These extras increase the overall premium but can provide valuable financial protection depending on your risk tolerance.
Making a Claim Under RAC Car Insurance
If you need to claim on RAC car insurance, you must report the incident as soon as possible, even if you do not intend to claim immediately. Most claims can be initiated online or via a UK-based claims helpline.
- Provide policy number and driver details
- Submit evidence such as photos and third party information
- Agree repair arrangements through an approved repairer network
- Pay the agreed excess
Under UK regulation, insurers must handle claims fairly and promptly. Complaints can be escalated to the Financial Ombudsman Service if unresolved.
Is RAC Car Insurance FCA Regulated?
Yes. RAC car insurance is distributed in accordance with FCA rules. The underwriting insurers are authorised and regulated, and customers benefit from protections such as:
- Access to the Financial Ombudsman Service
- Financial Services Compensation Scheme eligibility in certain scenarios
- Clear product information under ICOBS rules
This regulatory structure provides reassurance for UK consumers comparing policies.
Who Should Consider RAC Car Insurance?
RAC car insurance may suit:
- Drivers who value an established UK motoring brand
- Motorists seeking bundled breakdown options
- Policyholders wanting flexible add-ons
- Drivers comparing quotes against other major UK insurers
However, as with any motor policy, it is essential to compare excess levels, exclusions and total annual cost rather than focusing solely on headline premiums.
Advantages and Potential Drawbacks
Advantages
- Strong brand trust in the UK motoring sector
- Range of cover levels
- Optional breakdown integration
- Online account management
Potential Drawbacks
- Add-ons increase total price
- Monthly payments may cost more overall
- Excess levels can vary significantly
Always read the policy wording carefully to understand exclusions such as wear and tear, mechanical failure or undeclared modifications.
How to Get the Best Deal on RAC Car Insurance
To optimise value when arranging RAC car insurance, consider the following UK-specific strategies:
- Increase voluntary excess responsibly
- Accurately declare annual mileage
- Install approved security devices
- Build and protect your no claims discount
- Review cover at renewal rather than auto-renewing
Since FCA reforms now require fairer renewal pricing, switching may not always deliver the dramatic savings seen in previous years. Nonetheless, reviewing options annually remains good financial practice.
Comparing RAC Car Insurance with Other UK Providers
When assessing RAC car insurance, compare:
- Total annual premium in £
- Compulsory and voluntary excess amounts
- Claims service reputation
- Availability of guaranteed repairs
- Breakdown integration value
Focus on overall suitability rather than brand familiarity alone.
Final Verdict on RAC Car Insurance
RAC car insurance offers UK motorists regulated, flexible protection backed by a well-known motoring organisation. With multiple cover levels, optional breakdown integration and FCA oversight, it represents a credible option for drivers seeking dependable protection at a competitive price point in the United Kingdom.