The AA's market position is set to be challenged by three Midland brokers which have launched a direct breakdown service in association with MLP Legal Protection under the brand name Motor Assistance.

The premium, or Gold level, motor assistance cover will be discounted to around 50% of the industry average.

The two other levels of cover – roadside assistance and home-start service – also aim to be competitively priced.

All three products are provided by MLP Legal Protection and are being marketed by brokers Bryan & Knott of Shropshire, Bedfordshire-based Chesham Insurance Service and Clarke Roxburgh of Worcestershire.

John Breen, MLP Legal Protection sales director, said he hoped brokers would be able to capitalise on the current state of flux in the motor assistance market evidenced by members of the RAC and AA deciding to demutualise.

MLP's motor assistance service uses a nationwide network of garages and breakdown assistance providers.

Its policies cover vehicles up to 3.5 tonnes, rather than a nominated motorist, for up to six call-outs a year.

Clarke Roxburgh has offered the first 250 customers purchasing the cover a free warning triangle.

Details on premium pricing are available from the three brokers.