Royal Automobile Club

What Royal Automobile Club does

Royal Automobile Club of Western Australia (RAC WA) is a member-owned incorporated association headquartered in West Perth that has operated since 1905, with roadside assistance delivered continuously since 1926. It serves Western Australian residents and small-to-mid commercial fleet operators through a tiered subscription membership (Standard, Classic, Ultimate, Ultimate Plus roadside tiers, plus a $29/year Rewards program) and an expanding portfolio of insurance, automotive services, finance, travel, and home security products.

The organisation runs a multi-channel service delivery platform comprising 10 owned-and-operated Auto Service Centres across the Perth metropolitan area, a mobile mechanic and mobile tyre fleet, 24/7 roadside dispatch, online booking with registration-based vehicle and battery identification, and specialised diagnostics such as an EV Battery Health Check covering major electric vehicle brands. Five wholly-owned subsidiaries (RAC Insurance Pty Ltd, RAC Automotive Services Pty Ltd, RAC Security Services (WA) Pty Ltd, R.A.C. Travel Services Pty Ltd, and RAC Motoring Pty Ltd) historically executed the operating lines, though the insurance subsidiary was sold to IAG in May 2025 for $1.35 billion (comprising $400M cash and a 20-year exclusive distribution and licensing agreement valued at $950M).

RAC monetises through recurring subscription revenue, transaction-based automotive services (servicing, tyres, batteries, vehicle inspections, mobile mechanic), insurance distribution commissions under the IAG arrangement, travel agency commissions and holiday park revenue, home security hardware and monitoring, and finance products (car, caravan, personal, and boat loans). The member-owned structure means profits are reinvested into member benefits, community programs (road safety education, RAC Air Health Monitor), and the WA community rather than distributed to external shareholders. The customer base is highly distributed across WA consumers with a supplementary BusinessWise fleet channel, and the operating geography is restricted to Western Australia.

Name

Royal Automobile Club

Legal name

The Royal Automobile Club of Western Australia Inc

Website

https://rac.com.au

Company type

Private

Founded year

1926

Operating status

Operating

Short description

Royal Automobile Club of Western Australia is a member-owned automobile club providing tiered roadside assistance, automotive services, insurance distribution, travel, home security, and finance to Western Australian residents and small commercial fleets.

Ownership category

akta.pro rank

Product category

Automobile Club Services

NAICS

Automotive Equipment Rental and Leasing (5321), Tire Dealers (441340), Other Personal Services (8129)

SIC

Services-Auto Rental & Leasing (No Drivers) (7510), Services-Membership Sports & Recreation Clubs (7997), Wholesale-Motor Vehicles & Motor Vehicle Parts & Supplies (5010)

akta.pro primary industry

SR-22 / FR-44 Personal Auto Insurance (FSAJAAAJ)

akta.pro secondary industries

Fleet Management Services (Lifecycle, Compliance, Safety, Driver Programs) (TLABAHAJ), UHNW Concierge & Lifestyle Services (FSAAABAL)

Keywords

• Roadside assistance
• Automobile club
• Vehicle insurance
• Car servicing
• Member benefits

Headquarters

HQ city

Perth

HQ country

Australia

HQ region

Oceania

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Marketing or Sales, Technology or R&D, Supply Chain

Revenue model

1. Membership Subscriptions: Annual and monthly recurring revenue from Roadside Assistance memberships (Standard, Classic, Ultimate, Ultimate Plus tiers) and Rewards memberships. Pricing ranges from $124/year for Standard to $380/year for Ultimate Plus roadside coverage, plus $29/year for Rewards membership.
2. Insurance Products: RAC sells car, home, travel, life, health, pet, small business, motorcycle, caravan, and boat insurance. RAC WA sold its insurance business to IAG in a $1.35 billion deal in 2025, suggesting the insurance business was a significant revenue contributor.
3. Automotive Services: Revenue from car servicing, repairs, logbook services, tyres, batteries, vehicle inspections, and mobile mechanic services. Services are available at 10 Auto Service Centres and through mobile delivery.
4. Travel Services: RAC acts as a travel agent booking holiday experiences, accommodation, flights, car rentals, and cruises. RAC Parks & Resorts operates holiday parks throughout WA.
5. Home Security: RAC Security Services provides home alarm systems, monitoring, and security installation services.
6. Finance Products: Car loans, caravan loans, personal loans, and investment products offered through RAC.

Pricing tiers

Go-to-market motion2 records

Distribution channels5 records

Marketing channels5 records

Core offering

RAC WA fundamentally provides tiered Roadside Assistance memberships and a multi-line insurance, automotive, travel, and home services portfolio to Western Australian members. It sells annual and monthly subscription memberships across Standard, Classic, Ultimate, and Ultimate Plus tiers, distributes car, home, travel, life, health, pet, motorcycle, caravan, boat, and small business insurance products (underwritten post-2025 by IAG under a 20-year exclusive arrangement), operates 10 Auto Service Centres plus mobile mechanics for servicing, tyres, batteries, and inspections, and offers home security, finance (car/personal/caravan loans and investments), travel booking, RAC Parks & Resorts, and a Rewards discount program.

Product overview

RAC (Royal Automobile Club of Western Australia) is a member-owned automobile club offering a comprehensive suite of mobility and lifestyle products and services. The core offerings center on Roadside Assistance (with Standard, Classic, Ultimate, and Ultimate Plus tiers) and insurance products (Car, Home, Travel, Life, Health, Pet, Small Business, Motorcycle, Caravan & Trailer, and Boat). The organization also provides automotive services including car servicing and repairs (Logbook, Essentials, Essentials Plus, EV Essentials), tyre services, battery supply and installation, vehicle inspections, and mobile mechanic services. Financial products include car loans, caravan loans, personal loans, and investments. Additional services encompass home security (alarm systems and monitoring), travel services through RAC Parks & Resorts, and specialized business coverage via BusinessWise. The RAC Rewards membership program provides discounts on fuel, groceries, and partner retailers, with progressive insurance discounts available after five years of continuous membership. The organization serves members across Western Australia with 10 Auto Service Centres and mobile service capabilities.

Differentiator

Problem solved

Functional benefit

Brands

• Horizons: RAC's digital magazine content platform featuring articles on motoring, travel, lifestyle, and club news
• RAC Parks & Resorts
• Free2go
• BusinessWise
• Rewards
• RAC Tyres

Products and services

• Roadside Assistance Membership Tiered 24/7 automobile club breakdown cover providing towing, battery replacement, locksmith services, fuel delivery, tyre assistance, and hire car benefits across metropolitan and country areas in Western Australia.
• Car Insurance Motor vehicle insurance coverage for cars, providing protection against accidents, theft, and damage.
• Home Insurance Property and contents insurance coverage for homeowners and renters.
• Travel Insurance Insurance coverage for travellers covering trip cancellations, medical emergencies, and luggage loss.
• Life Insurance Life and trauma insurance products providing financial protection for families.
• Health Insurance Private health insurance coverage for medical and hospital expenses.
• Pet Insurance Insurance coverage for domestic pets covering veterinary expenses and treatments.
• Motorcycle Insurance Specialized insurance coverage for motorcycles and motorcyclists.
• Caravan & Trailer Insurance Insurance coverage for caravans, campers, and trailers against damage and theft.
• Boat Insurance Insurance coverage for boats and watercraft.
• Small Business Insurance Commercial insurance products tailored for small businesses.
• Home Security Home alarm systems, monitoring services, and security patrol services for residential properties.
• Car Servicing & Repairs Automotive servicing including Logbook Service, Essentials Service, Essentials Plus Service, EV Essentials Service, and general repairs performed at 10 Auto Service Centres or via mobile mechanic.
• Tyres Tyre sales, mobile tyre fitting service, and puncture repairs.
• Car Batteries Car battery supply and 24/7 mobile delivery and installation service in Perth metro area.
• Electric Vehicle Products & Services EV-specific services including EV Essentials servicing, EV battery health check, and electric SUV information guides.
• Vehicle Inspections Pre-purchase vehicle inspections covering engine, underbody, brakes, tyres, battery, and lighting with a free car history report.
• Mobile Mechanic Service Mobile car servicing that comes to the customer's home or workplace for logbook, Essentials, and inspection services.
• Car Loans Financing solutions for purchasing vehicles, offered through RAC Finance.
• Caravan Loans Financing solutions specifically for caravan purchases.
• Personal Loans Unsecured personal lending for various purposes.
• Investments Investment products and financial planning services.
• RAC Parks & Resorts Holiday parks and resorts located throughout Western Australia offering accommodation options.
• BusinessWise Business roadside assistance and motoring services tailored for commercial vehicle fleets.
• Free2go Roadside assistance cover specifically designed for young drivers aged 17-21 years.
• Rewards Membership Annual membership program offering discounts on fuel, groceries, RAC products and services, entertainment, and travel. Includes eligibility for insurance discounts after five years of continuous membership.

Quantifiable outcome

• 100 years of roadside assistance service delivery since 1926
• +2 more outcomes

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

One partnership is on record.

• IAG (Insurance Australia Group)flagshipStrategic or Co-development Partner · 15 May 2025IAG acquired the RAC Insurance business from the Royal Automobile Club of Western Australia in a $1.35 billion deal, comprising $400 million for the acquisition and $950 million for a 20-year exclusive distribution and licensing agreement. The transaction added approximately $1.5 billion to IAG's gross written premiums and was expected to be EPS accretive from the first full year of ownership.

Scale indicators4 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• NRMA: Australia's largest member-owned motoring club, offering roadside assistance, insurance, servicing, and travel — directly comparable to RAC WA across nearly all product lines, though operating primarily in NSW and the ACT.
• RACQ: Queensland's member-owned motoring club offering roadside assistance, insurance, automotive services, travel, and member benefits — directly comparable business model and product set to RAC WA.
• RACV: Victorian automobile club providing roadside assistance, insurance, automotive services, travel, and home services — same member-owned model and product breadth as RAC WA, but operating in Victoria.
• RAA: Royal Automobile Association of South Australia, a member-owned motoring club providing roadside assistance, insurance, automotive services, and travel — closest peer in size and structure to RAC WA.

Emerging players

• Budget Direct: Australian direct-to-consumer insurance brand competing with RAC's insurance distribution business on price. Relevant peer for the insurance segment, especially post-IAG deal where RAC relies on distribution economics.
• AAMI: Suncorp-owned Australian personal lines insurer competing in car and home insurance. Relevant peer for RAC's insurance distribution franchise given competitive pressure on auto insurance pricing in Australia.

Broad incumbents

• AAA (American Automobile Association): US federation of automobile clubs offering roadside assistance, insurance, travel, and automotive services. Much larger and broader, but the same member-owned cooperative model and core product mix as RAC WA.
• CAA (Canadian Automobile Association): Canadian federation of automobile clubs offering roadside assistance, insurance, travel, and member benefits — same membership-based cooperative model and product breadth as RAC WA.
• ADAC: Germany's largest automobile club with roadside assistance, insurance, travel, and automotive services — same membership-based model and product breadth as RAC WA, but at much larger scale.
• RAC (UK): UK-based roadside assistance and automotive services provider (now owned by Silver Lake / private equity). Comparable core product (roadside, insurance, servicing) but operates as a commercial (non-mutual) entity rather than member-owned.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/racwa
• Facebookfacebook.com/racwa
• LinkedInlinkedin.com/company/rac-wa
• Instagraminstagram.com/racwa

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Subsidiaries5 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments1 record

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Royal Automobile Club