Home Emergency Response

AA launches assault on home emergency market

18 October 2010

AA Home Emergency Response cover provides a network of approved tradesmen

  • Multi-million pound marketing campaign featuring John Cleese will aim to shake up the home emergency sector
  • The AA hopes to provide 15 million AA members with home rescue cover
  • No additional premiums charged for London policyholders

The AA has vowed to shake up the home emergency sector by pledging to bring greater competition to a market which has historically been dominated by a small number of players.

This week the AA launches a multi-million pound campaign featuring Fawlty Towers star John Cleese to help raise awareness.

Repair costs

Last winter homeowners faced an average bill of £343 for home emergencies as a result of winter weather and around 80% did not have the necessary insurance in place to cover this cost*. There are already reports that Britain is in for another bitterly-cold winter, with widespread snow and Siberian temperatures, according to forecasters who accurately predicted last year's big freeze**.

multi-million pound campaign features Fawlty Towers star John Cleese AA Home Emergency Response cover provides a network of approved tradesmen available 24 hours a day, seven days a week. There are no call-out charges or policy excesses and for work carried out under the policy, parts and labour are guaranteed. Cover is available to both existing AA members and non members.

Simplicity

In a market which is often overly complex, the AA is focussing on simplicity, offering three levels of cover with policies starting at just £4.99/month for AA members and £5.99 for non-members for a home rescue package that includes plumbing, electrics, pests, gas, roof damage and water supply cover.

The equivalent policy offered by HomeServe is almost four times the cost of an AA policy and with British Gas a policy with a comparable level of cover is more than double the price of the AA's policy.

The highest level of cover, which includes an annual boiler service, costs just £19.99/month for AA members and £21.99 for non-members, a saving of 27% on the equivalent HomeServe policy and 33% on the equivalent British Gas policy***.

Comment

Tom Stringer, Head of Home Rescue for the AA said: "For too long the home emergency market has been dominated by a small number of players and it's now time to give consumers greater choice. For over 100 years we've been rescuing people on the roads so it's a natural progression for the AA to transfer these skills to the home. We are confident that many of our 15 million members will see the value in extending rescue cover to their homes."

See the TV advert here »

* Daily Telegraph, 1st February, 2010

** Jonathan Powell of Positive Weather Solutions, quoted widely in national media including Daily Telegraph, 3 October 2010.

***Prices researched on 14 October 2010. Calculations of savings: British Gas £32.75-£21.99/£32.75 = 33% HomeServe £29.96-£21.99/£29.96 = 27%

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18 October 2010