Roadside gripes on the rise

Complaints about roadside assistance have more than doubled in the past year and are expected to leap again. Martyn James, head of media and marketing at complaints-handling website Resolver, said callout problems – especially excessive waiting times – are the leading theme of the gripes. “For many, the wider issue is that they’re stuck with poor service because roadside assistance is a relatively closed market,” he said. The sector is dominated by the RAC and AA, which control nearly 70% of the market and employ their own patrols, while smaller rivals subcontract callouts to local garages. Both firms were set up more than a century ago as co-operatives and, since demutualising, have been bought out by private equity firms, which have reduced staff and increased premiums. Not only do motorists have limited alternatives if they want to take their custom elsewhere, they also have no recourse when their provider fails to resolve a complaint, as the provision of roadside assistance is unregulated. Although the sale of breakdown cover is overseen by the Financial Conduct Authority, the service customers pay for is not. Since the AA and RAC have set up subsidiary companies for this service, motorists left at the roadside can’t turn to the Financial Ombudsman Service, which handles complaints about all other insurance issues. And as complaints rise, so do the premiums companies charge. Customers lured in by introductory deals can find the cost of their policy soaring by up to 124% when their membership is automatically renewed and rising each year they remain with their provider.