ALA vs RAC Warranty: Pros and Cons of Each Provider

When it comes to protecting your vehicle investment, choosing the right extended warranty policy is crucial. Two of the most notable options in the market are ALA and RAC. Both companies offer a range of warranty products designed to cover various mechanical or electrical faults once your manufacturer warranty has ended. The two providers differ significantly in terms of features, pricing, and customer experience. This article will compare the coverage and limitations of ALA and RAC warranties, helping you make an informed decision about which provider is best for your used car

How do ALA and RAC Warranty Compare?

Choosing a warranty provider can sometimes feel like you’re going in circles so we make it easier to understand what coverage each company offers you.

ALA Insurance Features

1. No Pre-Inspection: Get coverage without the hassle and additional labour costs of an inspection.

2. Rated 4.9 Stars on Trustpilot: High customer satisfaction and trust means no hidden clauses, you get what you pay for.

3. Wear & Tear Cover (Platinum): Protection against natural wear and tear to help avoid an expensive repair bill.

4. Diagnostics Cover (Gold & Platinum): Coverage for diagnostic costs up to £50 or one hour of labour (whichever is reached first).

5. Generous Component Cover: Comprehensive protection for various parts including gearbox, transmission, suspension, engine, brakes, fuel system and more.

6. Competitive Prices: Affordable options without compromising quality

7. Zero excess claims: our safety net could leave you with nothing to pay after a sudden failure

8. UK-Based Customer Support: Dedicated support right here in the UK.

9. No Commission-Based Pay for Customer Support Staff: Support staff are not incentivised to sell so you get the most helpful support possible

10. Insured Warranty: Financial backing gives you peace of mind.

11. Regulated by the Financial Conduct Authority: Ensures adherence to high standards.

12. Protected by the FSCS: Your money is safe and secure.

13. Rated Five Stars on Defaqto: Exceptional rating for product quality.

RAC Features

1. Wide Range of Coverage Options: Three levels of cover and EV warranty to suit different needs.

2. Roadside Assistance: Included in many aftermarket warranty packages for extra peace of mind.

3. Diagnostics Cover: up to £55 or one hour for Platinum and up to £50 or one our for Gold (not covered on Silver).

4. Established Reputation: Long-standing provider with a solid history in the motoring industry.

5. 24/7 UK-Based Customer Service: Accessible support whenever you need it.

6. Claims Process: Generally straightforward, with options for online claims.

7. Flexible Payment Options: Monthly payment plans available.

8. Rated Highly for Customer Service: Positive reviews from a variety of sources.

Pros and Cons of ALA vs RAC Warranty

Which Has Better Component Cover: RAC or ALA?

When it comes to component cover, both ALA and RAC provide different levels of protection, but there are nuances to consider at each level.

ALA Component Cover

• Comprehensive Component Cover: Covers a wide range of parts including the engine, transmission, and electrical systems. Platinum policies cover almost every mechanical or electrical component.
• Wear & Tear Cover: Available in Platinum policies, which can be beneficial for older vehicles (up to eight years and 80,000 miles).
• Consumables and consequential damage: Certain exclusions may apply, particularly for parts deemed “consumable”, such as brake pads, clutch plates, bulbs or tyres, parts under regular maintenance, or cosmetic damage. However, we cover the use of working materials on Platinum policies, in addition to the repair of consequential damage of another covered component.

Read about component cover and what it doesn’t cover for the full picture of what’s included

RAC Component Cover

• Extensive Coverage: Includes major mechanical components, but specific coverage can vary based on the plan selected. Check the specific component cover to avoid being caught out.
• Wear & Tear: Platinum Plus policies cover wear & tear with limits.

In general, ALA’s Platinum level of cover may offer more comprehensive wear and tear coverage compared to RAC’s standard offerings. Component cover may be more generous for a more competitive price. Bear in mind that neither RAC nor ALA covers betterment. Both ALA and RAC warranties have options for Breakdown Cover or roadside assistance for additional peace of mind.

How do the Prices of ALA and RAC Warranties Compare?

Pricing can vary significantly between ALA and RAC warranties. ALA generally offers competitive pricing, especially for the level of coverage provided. Factors influencing the cost include:

• Vehicle Age and Make: Older vehicles are only eligible for more basic policies, meanwhile, luxury or fault-prone models may incur higher premiums.
• Coverage Level: Comprehensive plans with better component cover will come at a higher price
• Payment Terms: Monthly payments may add to the overall cost compared to a lump sum payment.

RAC warranties tend to be on the pricier side despite less generous component cover. However, they do include services such as roadside assistance. ALA have recently launched Breakdown Cover which can be added to your warranty policy for greater peace of mind if you experience a mechanical or electrical failure away from home.

Exclusions and Limitations for ALA vs RAC Warranty

ALA Warranty Limitations

• Levels of Cover: ALA offers three levels—Gold, Platinum, and Silver—each with its own list of exclusions, requirements and policyholder-specific limits. Platinum offers the most comprehensive component cover.
• Excess Payments: We never charge excess when you make a warranty claim with us.
• Common Exclusions: Damage due to neglect or improper use, consumable items, and pre-existing conditions.

RAC Warranty Limitations

• Flexible Plans: Various levels (e.g., standard, premium) each with specific exclusions.
• Excess: Typically, an excess fee applies when making a claim.
• Common Exclusions: Similar to ALA, may include wear and tear, lack of maintenance, and certain electrical components. Betterment, consequential damage and consumables may not be covered on your policy.

Both providers have clear exclusions, and it’s important to read the fine print to avoid surprises during a claim.

Deciding Between RAC and ALA Warranty

When choosing between ALA and RAC warranties, consider the following factors:

• Trustworthiness: Both brands have good reputations, but ALA’s higher Trustpilot rating may sway some customers.
• Good Service: ALA’s dedicated support team contrasts with RAC’s extensive resources
• Competitive Price: ALA often has more affordable options.
• Additional Benefits: Evaluate if roadside assistance from RAC is essential for you.
• Reviews & Testimonials: Customer feedback can provide insight into real-world experiences.

Frequently asked questions

Does the ALA Warranty include breakdown cover?

ALA warranties have recently introduced Breakdown Cover at an additional premium for complete peace of mind about the possibility of breaking down away from home.

What is the most reputable car warranty company?

Both ALA and RAC are reputable, but ALA has received higher ratings on platforms like Trustpilot. We also have competitive prices and we never push our customers to buy from us.

Who underwrites RAC warranty?

London General underwrites RAC warranties and ALA warranties are underwritten by Financial and Legal Insurance Company Limited

Can you transfer an ALA or RAC warranty if you sell your vehicle?

Yes, both ALA and RAC allow for the transfer of warranties, making them a valuable asset when selling a vehicle. ALA doesn’t charge a transfer fee, check the RAC website for details about transfers and fees.