RAC is best known for its breakdown service. This service was originally part of the Royal Automobile Club, a private members' club founded in 1897. The club established a separate organisation, RAC Motoring Services, in 1978, to run this part of its business and later sold its stake in the new 'associate' company. The members' club still exists, and is located on Pall Mall in London, while RAC are based in Walsall.

RAC are now owned by CVC Capital Partners and GIC Private Limited.

The RAC now also offers a whole suite of insurance products including home and travel cover. Its car and home insurance are administered by BISL, which runs insurance services for a number of major financial brands.

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