Tuesday, December 02, 2014

RACV membership. Do you really need it?

My father had an RACV membership and encouraged my brothers and myself to also join RACV. Like him I was a loyal RACV member for many years. Then a couple of things changed.

I always found RACV's response times pretty slow. On one occasion I waited in Rye for around three hours for someone to attend. When I rang up to see how long it would be I was told I'd been put in the wrong queue. I'd have to go into the right queue and start the wait again. I said that wasn't particularly fair and could they do anything. Their answer was no, but if I hang up and called back again and said my wife was pregnant, I'd get put into the priority queue. I went and got assistance from my father-in-law, fixed the petrol blockage and drove home. Needless to say I was totally unimpressed.

Whilst not related to the car, I also had home insurance. When I was burgled RACV was very difficult to deal with and was trying to pay as little as they could. It took months of persistence to get a reasonable settlement. They were offering around $5,000 on a $13,000 claim. In the end I settled for $10,000, but in hindsight I should have kept fitting. I was very young and didn't realise they were still ripping me off. So another poor experience.

I read once (although I didn't confirm this) that 90% of RACV call outs were for a flat battery or keys locked in the car. The flat battery is easily handled with a portable battery unit with jumper leads. The key issue is also easily handled by making sure we have spare sets of keys in suitable locations.

One issue that also needs to be considered is the need for a tow in the case of a breakdown. That's now easily handled. A call to any Repco automotive repair centre and you can usually get a tow to the nearest repair centre for around $100.

It has now been a few decades since I've been an RACV member and myself and my entire family have never had a need to use them. Yes we've had flat batteries, keys locked in cars, and even a breakdown requiring a tow, but never have we needed the RACV.

The saving each year for all the family's cars have mounted up. I don't know the current cost of membership, but if I allow $100 per car, we're probably talking of $4,000 to $6,000 of savings over the years. That's a huge saving.

With a small amount of pre-planning it is very easy to not need an RACV membership. After a couple of years the savings made should well and truly cover services the membership covers and the rest is money in your pocket.

Whilst it may look like a big decision, the choice is probably easier than you think. What's the worst thing that happens if you're not a member. You join if you need them. The only additional cost is an additional year of members. At about $100 that's really not a great risk. If you have multiple cars and those cars are fairly reliable, chances are you'll be better of even in the first year by not having a membership.

It really is good to look back and realise just how much a saving I've made. All the issues RACV would have covered have been easily covered using other service providers or approaches. I'd even say at a better level of service. That to me is a winning situation.

Kelvin Eldridge
www.JustLocal.com.au

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