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The Business of Warranty and Add-on Insurance

Providing a broad range of insurance products to the car buyer can give them added reassurance in their future ownership and bring benefits for the dealership.

Given that the purchase of a car is typically the second largest outlay for consumers, after their home, there is a good likelihood that many buyers will be interested in learning about add-on products which will help to protect their purchase and minimise their risk to unexpected financial burdens in the future.

A dealership’s point of sale experience has a vital part to play here. Which is why Automotive Management is delighted to publish this special report, The Business of Warranty and Add-on Insurance.

Sponsored by Car Care Plan, this insightful report explores the importance of the provision of warranties and add-on insurance such as GAP and alloy wheel cover to the motor retailer.

It examines the dealership’s opportunity to generate important additional revenue at the car sale and in aftersales, while enhancing the buying and ownership experience of the customer, by compliantly providing them with relevant products which offer peace of mind and good value.

The most successful dealerships fully understand the steps required to embed their provision of warranty and add-on insurance in both their digital marketing activity and in their customers’ car buying journey. This principle applies equally no matter whether a customer is buying a new car or a used one, albeit naturally the experience is tailored to ensure the products are relevant to their needs.

This report also outlines the onus on the dealership’s team of thorough and robust qualifying of every customer who is offered insurance. In a sector monitored by a keen eyed regulator, the Financial Conduct Authority, every dealership introducing regulated insurance products must be confident that its team is putting the customer first, is communicating well and is helping the customer to make an informed choice that will protect them from future risks.

The role of warranties and add-on insurance in protecting the dealership’s future is also explored in the report. These products will remain a fantastic opportunity for dealerships for months after the customer has driven off the forecourt. What could be better for the business’s reputation than to be able to support a customer in need when they make a claim, whether they have kerbed an expensive alloy wheel, a mechanical component has failed or they are looking for a replacement after their car was written off in a collision?

A pro-active dealership can use post-purchase marketing to remind the customer of the cover they have selected and to point out that, should the worst happen, its expertly trained technicians are best placed to help them. Likewise, any routine servicing or seasonal health checks are good chances to make the car owner aware of how they can use the products they already have, such as cosmetic repair cover.

Such tactics can lead to revenue-boosting jobs for the workshop, but more importantly will subtly remind the customer that the dealership cares and appreciates their business. Achieve that, and that’s a big step to building loyalty when the motorist next wants to change their car.

Read The Business of Warranty and Add-on Insurance, sponsored by Car Care Plan, here.