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Insurance providers expected to swoop

Breakdown insurance providers are expected to target thousands of motorists with nearly new MG Rover cars whose cover is being scrapped next month.

AA Business Services has announced it is ending MG Rover Assistance, its recovery contract with the collapsed carmaker, on August 16. The move leaves all private motorists and company car users with MG Rover cars less than 12 months old without recovery insurance.

The AA says the decision is “regrettable”. It has already written to private motorists affected, but has alerted fleets and contract hire companies through trade publications like AM sister magazine Fleet News because details of these customers were held centrally at MG Rover.

It is offering to provide alternative cover at a discount. However, some rival organizations believe dealer groups could exploit the opportunity to sell their breakdown insurance schemes to affected owners.

Europ Assistance is one provider that is already working with a number of MG Rover dealers to restore services to customers who previously were backed by the manufacturer. It is hoping to target more dealer partners.

Alan Lawson, Europ Assistance director of automotive services, says: “We’re supporting their new vehicle guarantee programme, administering the self-finance warranty and providing roadside assistance, and we’re keen to extend this support beyond our client base.”

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