A new 5-year deal has been agreed between the RAC and The Warranty Group, which will see TWG continue to operate the RAC brand in the motor warranties sector.
The arrangement covers a range of established RAC-branded motor warranty products as well as the recently launched RAC BuySure used car initiative, which is operated by the RAC and TWG in partnership.
The RAC and TWG first started working together in 2008 and the RAC brand has grown in the warranties sector at an average rate of more than 20% every year since, becoming a major force in the market among independent used car dealers, car supermarkets, franchises and manufacturers.
RAC Head of Dealer Propositions Mario Dolcezza, said: "We are very pleased to have finalised this deal. In recent years, we have forged a very strong relationship with TWG. Their expertise and drive has been a key factor in our continuing level of expansion into the warranty sector.
"Signing a five-year deal is a strong sign of our belief that TWG are the right partner going forward, especially as we look to make RAC BuySure a leading brand in the used car sector together."
Ian Simpson, sales and marketing director at The Warranty Group, added: "As custodians of the RAC brand in the warranty sector, we have worked very hard to meet the standards expected of the name, both in terms of delivering the right products for customers and showing dealers the many advantages of working with ourselves and the RAC.
The RAC BuySure initiative was formally launched in April and has been created to provide used car customers with a nationwide approved used car scheme that sets very high standards. It is open to independents, car supermarkets and franchises dealers.
The Warranty Group is the world's largest single source provider of extended warranty programmes and related products for the motor industry. With almost half a century of expertise and 1,800 employees in 33 countries, the company's RAC product portfolio covers warranty, GAP and RTI, tyre and alloy insurance and training.