Lex Service, the company that owns RAC, is assembling a new firm to offer drivers financial services as it strives to create a “cradle to grave” motoring solutions network. Working with the UK's third largest general insurer, AXA Insurance, the RAC is creating RAC Financial Services.

The project builds on an agreement dating back to 1996 between pre-Lex RAC and Guardian Royal Exchange, which AXA acquired in 1999. The new venture will offer drivers a range of financial services, including motor insurance, motoring and personal loans, and loan insurance. But RAC Financial Services also offers drivers caravan insurance, classic car insurance, personal accident cover and private medical insurance for automotive-related accidents.

The new consumer-focused venture fits into the RAC portfolio next to RAC Business Solutions. It means the firm takes a vital step towards offering drivers wide-ranging motoring services, says Jason Richards, RAC Financial Services managing director.

“We are currently re-evaluating what position we can take within the retailing sector. We are looking at what is available for us in that space. We are talking to potential partners to help us get into that space,” Richards says.