Any of you offering the Mechanical Breakdown Contracts to your auto insurance clients ? As a fairly new Mercury agent I just looked into the program and it looks good. As a direct agent I can offer it at a discount from what the car dealers offer(big suprise) and we can solicit and then send info. to everyone who adds a new or used car when they call. I'm guessing it will alienate some of the dealers but who really cares...I'm giving the client a much better deal and plus I make 2 bills on every one that gets issued. I'd be interested in hearing any negatives from someone who is already doing this ??
Mechanical Breakdown Coverage
- Thread starter 1manshow
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Allstate had a program for a while but it shutdown. The problem as I see it is people don't want to deal with the claims procedure. They'd rather go to the dealer where they bought the car and have the dealer deal with the claims. Plus the dealer rolls it into the loan. While that may not make sense financially, for simplicity sake it makes it a much easier add on to a car sale and a not an insurance sale.
Once they have added the new car to their insurance, chances are if they wanted an extended warranty they've already purchased it.
Of course we never really marketed it either.
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- #3
Yeah, thought about that as well. Turns out they can cancel the plan purchased through the dealer in the first month with no penalty. I was assuming that if it was pointed out that they paid 40%more for the exact same plan they may want to back out of it
I think we'll probably contact a few hundred clients and do a mini survey to see if there is a need/demand.
I think we'll probably contact a few hundred clients and do a mini survey to see if there is a need/demand.thecarguy
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I can probably answer most service contract questions you may have. Im currently a franchise dealer f&i director and have been selling service contracts for 8 years. Due to slow business I am wanting to open my own indy agency and want to offer service contracts for additional income. I have many customers that come in to the dealership and purchase contracts for vehicles that they have bought elsewhere or vehicles purchased from us that they didnt buy the contract at the time of purchase.
Yeah, thought about that as well. Turns out they can cancel the plan purchased through the dealer in the first month with no penalty. I was assuming that if it was pointed out that they paid 40%more for the exact same plan they may want to back out of it
It would probably be worth the added hassle if you can save them 40%. Those are real dollars.
And testing is the way to find out if it is saleable.
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How much extra work is it to issue the extra service contract? Also, what to your prospects think of it? Is it an easy sell?
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- #7
FYI, had the staff start making contacts to gather feedback....biggest drawback is that we are normally the third point of contact...shop for the car, call the bank, call the agent. I don't have faith that its a saleable product and possibly a credibility damage if we tried to promote a non-insurance product. Too much marketing cost for the limited demand IMHO.
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