RAC Business Services' warranty operation has joined forces with warranty services provider, Motorway Direct plc in a strategic partnership claimed to revolutionise the mechanical breakdown market in the UK.
Motorway Direct will integrate their warranty expertise alongside claims handling software to market a range of RAC Warranty products and services in the £1 billion a year market.
Customers include motor manufacturers Ford and Mercedes-Benz alongside some of the UK's largest independent motor dealers, including new internet-based Inchcape Direct scheme.
RAC Business Services managing director Gary Spellins said: "Motorway Direct provide the perfect strategic fit for our warranty business.
"The two teams will work closely together to raise the profile of the warranty market and move it away from its current obsession with low-cost policies providing minimal cover."
Motorway Direct's managing director Donald Pinkney said: "The RAC Warranty brand has an outstanding commercial reputation and Motorway Direct will enhance this still further through class-leading policies, customer services and claims management processes."