The policy is available immediately to over 200,000 existing owners of MG Rover vehicles under three-years-old or those that buy a vehicle from participating MG Rover dealers.
Customers can buy the policy by telephoning RAC Warranty (Telesales Direc) or can arrange cover online at www.racwarranty.com.
Alternatively customers can contact their supplying MG Rover dealer.
Abu Shafi, director of RAC Business Solutions, said: "We believe this RAC Warranty offers MG Rover owners peace of mind. We have a great deal of sympathy with the position MG Rover customers find themselves in and RAC Warranty has worked as quickly as possible with MG Rover and XPart to put this rescue package together".