Strategic Insurance Services, part of Specialist Risk Group (SRG), has partnered with the AA to launch a new wholesale tyre insurance scheme for AA Roadside customers.
The product is designed to sit alongside AA Roadside assistance and respond when tyre damage leads to a call-out, giving customers a way to limit out-of-pocket costs from everyday motoring incidents.
The policy provides cover for accidental or malicious tyre damage that results in an AA Roadside assistance call-out, with up to £60 available per tyre and up to five claims per year. Approved claims carry no excess, and customers can pay monthly or annually.
Tyre-related incidents are a high-frequency, relatively low-severity cost driver in motor and assistance portfolios. Market commentary has pointed to the way severe weather, deteriorating road surfaces and rising transport costs are adding pressure to motor claims and breakdown services, particularly where disruption and road conditions lead to vehicle damage and higher operating costs for fleets.
The launch builds on Strategic’s existing work with the AA across ancillary insurance products and sits within the MGA’s growing portfolio of specialist schemes placed through affinity and distribution partnerships. These programmes are aimed at helping brokers and partners embed targeted protection for specific, high-frequency risks into wider propositions.
The tyre cover is positioned as an add-on that can be integrated into existing motoring or roadside offerings, creating an additional revenue stream while addressing a clearly defined customer pain point.
Under the FCA's Consumer Duty, there is closer scrutiny of add-ons and ancillary products, with firms expected to show clear value, understandable wording and straightforward claims handling rather than complex bolt-ons that are hard to explain or justify.
Tyre damage remains one of the more common reasons for roadside assistance, and linking an assistance call-out directly to a defined insurance response can simplify triage and reduce the risk of disputes over coverage.
Integrating the product into the Roadside journey allows tyre damage to be handled as a single event rather than separate interactions for assistance and insurance. For Strategic and its broker partners, fixed per-tyre limits, a cap on claims per year and zero excess on approved claims provide a clear framework for pricing and reserving.
Christian Freer, managing director at Strategic Insurance Services, said the new scheme is intended to complement existing roadside cover and extend it in a practical way. He described it as an example of working with partners to address common motoring risks while giving brokers another way to enhance their motoring propositions.
Meanwhile, Matt Grayson, head of AA Road Products, highlighted how frequent tyre-related incidents are within its assistance portfolio, noting that tyre damage is one of the most common reasons for call-outs.
By adding an optional, zero-excess tyre policy integrated into the AA Roadside journey, the AA aims to offer members a straightforward route to limiting unexpected costs and returning to the road more quickly, he said.
