View this article online: https://www.insurancejournal.com/news/national/2014/08/27/338763.htm
EFG Companies has launched a vehicle service contract (VSC) called Simplicity Vehicle Protection that gives agents and brokers the ability to sell an extended warranty to clients after the purchase of the vehicle.
With Simplicity Vehicle Protection, agents and managing general agents (MGAs) now have access to products that help customers protect their pocket book from expensive vehicle repairs.
According to a recent EFG survey conducted by a third-party research firm, 33 percent of consumers stated they were never offered an extended warranty on their vehicles at the time of purchase.
As consumers continue to keep cars longer than historical norms, ongoing maintenance costs are a growing issue. According to the EFG survey, 48 percent of respondents expect to replace their cars every four to seven years, which for many could extend their ownership well beyond 100,000 miles and their manufacturer’s warranty.
In addition, according to the latest “Automotive Market Trends” analysis from Experian, the percentage of vehicles on the road pre-dating the 2001 model year has reached its highest level since 2009. Vehicles in that age group made up more than 28.3 percent of all vehicles on the road today, which is 6.2 percentage points higher than in 2008.
Mark Rappaport, president of the Simplicity Division of EFG Companies, says Simplicity Vehicle Protection also provides insurance agents with an opportunity to set differentiate themselves from competition while increasing profitability and customer retention.
With five different coverage levels, consumers have the ability to choose the level of vehicle protection that works best for them. All coverage levels include:
Simplicity, a division of EFG, also offers home warranty, roadside and repair assistance and payment protection consumer protection products.