A one-fifth year-on-year increase in sales of warranties has been seen at RAC Warranty.

Ian Simpson, sales and marketing director at RAC Warranty, said that the tough economic conditions had prompted dealers to examine their warranty arrangements in detail with the objective of maximising revenue.

He explained: “As a company, we have benefitted from this trend in two ways – by dealers looking to maximise their warranty revenues with their current supplier, and by changing their warranty provider if they do not feel they are receiving the right support.”

RAC Warranty is a new warranty company operated by the RAC in partnership with The Warranty Group, launched at the start of 2008.