Tuesday 21 July 2009

How To Price Car Breakdown Cover?

Yesterday we set our new RAC Breakdown Cover live. We could have launched it at the same time as our new Warranty plans but the truth is we were locked in a heated debate about price.

Whenever such a debate occurs we try to return to "North" on our business compass bearing. "North" has always been about saving motorists money on great automotive products. Car Breakdown cover proved to be stormy sea's, and hence the delay in launching (I promise no more nautical references)

The issue was cover versus headline price. Google "Car Breakdown" and you are bombarded with Roadside cover from just £27 per year. Affordable yes and to a degree worth having providing the car can be fixed at the roadside. But what if it can't be fixed? Whilst the leading RAC and AA basic cover does include a tow up to 10 miles to a garage or safer place, it doesn't help if you are 40 miles from home with the 2 kids and a dog. To get taken home or to a destination of your choice you need to add Recovery to your plan. How many people notice this when the basic policy they bought was legitimately called "Breakdown Cover"?

Equally basic Breakdown Cover doesn't include coming out to your home when your car won't start in the morning because you've got a flat battery, the most common home call out, or the like. This requires an At Home top up to the basic plan.

Having included Recovery and Home Start to your basic Roadside cover the plans are significantly more expensive, but do then have a full suite of solutions in the event your car breaks down or is immobilised.

So here is where the debate raged. Offer a choice of plans at different prices, lots of description about the levels of cover to ensure the motorists is clear about what is and isn't included or One Plan with great cover, provided by a big name breakdown provider


CarCare Direct are delighted to announce the launch of

RAC Breakdown Cover: Roadside, Recovery and At Home for £95

Shame it took 6 weeks to get there!

For more info visit www.carcare-direct.co.uk/racbreakdown.html

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