The RAC has introduced new hassle-free monthly policies to help make paying for breakdown cover more flexible and affordable for small businesses.

The new hassle-free monthly policies can be altered at any time to suit changing needs in a challenging financial climate

Said to be a first in the breakdown sector, the company is now offering breakdown policies that allow small businesses to spread the cost via monthly rolling contracts paid for on direct debit. These are aimed at businesses from sole traders to those with fleets of up to 99 vehicles, and can be altered at any time to suit changing needs in a challenging financial climate. This includes adding or removing vehicles or increasing, or decreasing, the cover level. Customers also have the right to cancel at any time without penalty.

The move to monthly rolling contract follows last year’s introduction of annual continuous card and annual direct debit payments for the RAC’s 12- or 24-month fixed policies, which provided a convenient move away from the hassle of traditional annual invoices.

Nicky Brown, head of the RAC’s small business team, said: “Having flexible rolling monthly contracts that can be amended at any point to better manage outgoings at time of rising costs is a definite benefit for any small business. It also lessens the admin burden associated with invoices and managing cashflow. We believe this delivers just what small companies need in this challenging climate: a convenient way of spreading costs while still ensuring they always have the right level of cover in place to quickly get any of their vehicles moving again should they break down.”

RAC Business Breakdown cover for SMEs is available at a vehicle level – up to 99 vehicles – providing cover for any driver of specified business cars, vans, minibuses or taxis.

Companies taking out Roadside, Recovery and At Home or Van Total RAC Small Business Breakdown policies from 13-31 May 2023 will also benefit from free Battery Replace, which covers the replacement and fitting of faulty batteries up to £600. The cost for a single car is £13.50 a month, dropping to £6 per car for fleets of 25-plus.

The Van Total solution – which includes unlimited callouts, recovery to anywhere in the UK, van-for-van replacement or overnight accommodation – is priced at £17 a month for a single van or £8.50 per van for fleets of 25 or more.