Understanding RAC Warranty: What’s Covered & Why It Matters

Buying a used van is one of the most significant financial decisions a small business or sole trader makes. The RAC offers a warranty that covers or contributes towards the cost of repair if your vehicle develops a problem after purchase. For buyers who want the reassurance of a trusted national brand behind their purchase, RAC warranty cover is one of the most recognised and widely respected options available.

At Exeter Diesels, we offer RAC warranty cover with our used vans because we believe in giving our customers confidence well beyond the sale. This guide explains what RAC warranty cover includes, what it does not cover, and why having it in place is so important when buying a used van.

What is an RAC Warranty?

A used vehicle warranty is a contractual agreement between the buyer and seller of a vehicle, which outlines the terms and conditions under which the seller agrees to repair or replace certain parts within a certain timeframe.

The RAC warranty is a mechanical breakdown warranty, meaning it kicks in when a covered component fails due to a fault, not as a result of an accident or wear that should have been maintained. Used vehicle warranties can be provided by a manufacturer, dealership, or third-party providers, and these contracts typically cover issues involving the engine, structural integrity, and electrical components.

RAC warranty cover for used vehicles is administered by TWG Services Limited and backed by RAC Motoring Services, one of the most recognised motoring organisations in the UK. 

What Does RAC Warranty Cover?

The specific components covered will depend on the level of warranty purchased, but RAC warranty products are designed to protect buyers against the most costly and common failures on used vehicles.

Core covered components typically include:

• Engine — Internal components including pistons, crankshaft, camshaft, valves, oil pump, and timing components
• Gearbox — Internal parts of the manual or automatic transmission
• Differential and driveshafts — Transfer of power to the wheels
• Steering — Rack and pinion, power steering pump
• Braking system — Master cylinder and servo (not brake pads or discs, which are wear items)
• Cooling system — Water pump, thermostat, radiator
• Electrical components — Alternator, starter motor, and in higher tiers, more complex electronic systems
• Fuel system — Fuel pump and injectors on eligible vehicles

Higher-tier RAC warranty packages include wear and tear coverage for components that have reached the end of their normal working lives, provided the vehicle is under eight years old and under 80,000 miles at the point of claim.

Breakdown cover is also included: RAC breakdown cover includes roadside assistance, recovery if the vehicle cannot be repaired at the roadside, onward travel if required, and hotel accommodation if you are stranded due to a breakdown. This is a particularly important benefit for business van owners who depend on their vehicle being back on the road as quickly as possible.

Labour and parts: Parts and labour cover is included, and claims are handled directly with the repairer, meaning you are not out of pocket while waiting for reimbursement.

Continental cover: Higher levels of cover include European protection for up to 60 days per year, useful for businesses that occasionally operate across the channel.

What is NOT Covered Under RAC Warranty?

Understanding the exclusions is just as important as knowing what is covered.

Standard exclusions include:

• Routine wear items — Brake pads, discs, clutch friction plate, tyres, filters, and wiper blades are consumables and are not covered
• Accident damage — Repairs resulting from a collision are for your vehicle insurer to handle
• Frost, corrosion, and water ingress — Environmental damage is not covered
• Misuse or negligence — Damage caused by continuing to drive after a fault has developed, or loss caused by any wilful, unlawful, or negligent act, is not covered
• Modifications — Any modifications to the vehicle can affect or void the warranty
• Maintenance failures — If the vehicle has not been serviced in line with the manufacturer’s schedule, the warranty can be voided
• Bodywork and cosmetic issues — Dents, paint, trim, and interior wear are not covered

Service requirements: If you do not have proof that your vehicle has been serviced by a repairer in the last six months prior to warranty purchase, you must service the vehicle within 14 days of taking out cover, this is a critical point that buyers should not overlook.

How Long Does RAC Warranty Cover Last?

RAC warranty products are available for varying term durations, with cover options extending up to 36 months. Some extended warranty products offer cover for up to three years, depending on the vehicle’s age and mileage and the level of cover selected.

The claim limit applies up to the original purchase price of the vehicle, and individual claim limits apply per incident. This is worth checking — ensuring your claim limit is appropriate for the value of your van and the potential cost of the repairs you might need.

How to Make a Claim

Making a claim against your RAC warranty is straightforward. You should return to the dealer you purchased the vehicle from to diagnose the issue. If they do not have repair facilities, you can visit an RAC Approved Garage via yourvehiclecare.co.uk, or at any VAT-registered garage.

If the claim is submitted by the selling dealer or an RAC Approved Garage, they will normally invoice the RAC directly once the repair is completed, meaning you are not required to pay upfront. If you use a non-approved garage, you may need to pay first and claim reimbursement.

The RAC aims to pay repair invoices within three to five working days of receiving a valid invoice.

How Much Does RAC Warranty Cost?

Warranty cost varies depending on the vehicle’s age, mileage, the level of cover selected, and the term duration. Protection starts from under 83p a day for a four-year policy, a fraction of the cost of even a single unexpected repair to a major component.

We offer RAC-backed cover because we believe the cost of peace of mind should not be a barrier to buying with confidence. Speak to our team about the specific level of cover included with any vehicle you are considering.

Why Buying from an RAC Approved Dealer Matters

Being an RAC Approved Dealer means complying with a code that is Chartered Trading Standards Institute (CTSI) approved, ensuring that trading standards are being met. It means that the dealer has agreed to operate transparently and professionally — not just selling a van, but standing behind it.

For buyers, this is a meaningful distinction. A private seller cannot offer an RAC warranty. A non-approved dealer may offer a basic in-house guarantee with very limited scope. RAC Approved Dealer status means the warranty is backed by one of the UK’s most recognised motoring organisations, with 24/7 breakdown support included.

At Exeter Diesels, all our vehicles are also HPI checked before sale — so you know the van you are buying has no outstanding finance, has not been written off, and has not been stolen.

FAQs

What is covered under RAC warranty? 

RAC warranty covers mechanical and electrical failures including the engine, gearbox, steering, cooling system, and electrical components. Wear items like brake pads and tyres are excluded.

What is the warranty scheme on RAC? 

The RAC warranty is a mechanical breakdown insurance product administered by TWG Services Ltd, providing parts and labour cover with complimentary RAC breakdown assistance included.

What does RAC cover you for? 

RAC warranty covers the cost of repairing specified mechanical and electrical components that fail due to a fault, plus 24/7 breakdown assistance including roadside recovery and onward travel.

How much is RAC warranty cover? 

Costs vary by vehicle age, mileage, and term length, but policies can start from under £1 per day. At Exeter Diesels, RAC warranty cover is included with our used vans. Some exclusions apply.