How Diminished Value Warranties Can Make Or Break Your Customer Experience

By Mike Gardner, Vice President Automotive Product Group Sep 12, 2018 12:00:00 PM

 

Accident

Diminished value warranties help to maintain the value of your vehicle even in the event of a crash or accident. Learn more about diminished value protection from Fortegra.


The aftermath of an accident can make or break (no pun intended) what happens to a customer’s vehicle. But with the right type of protection in place, customers can enjoy the peace of mind in knowing that any value lost in a potential accident can be covered.

To understand how, let’s take a closer look at diminished value warranties.

Consider the damage

Over the first five years of ownership, vehicles lose an average of $15,000 in value. But with an accident mixed in, it can get a lot worse. How much worse? Well, when evaluating damage there are numerous factors at play. How old is the vehicle? Has it been in an accident before? Has it been maintained? The list goes on, and it all adds up to diminished value.

Build positive relationships

Did you know that drivers are three times more likely to experience an accident that leads to diminished value as opposed to one that results in total vehicle loss? So much for a GAP claim!

With that kind of statistical probability in play, it might seem like diminished value has the potential to be a real burden for owners, dealers, and insurers alike. But it doesn’t have to be. How can third-party administrators and auto dealers work together to help customers overcome value lost on a vehicle?A diminished value warranty, of course.

Covering value lost due to an accident, diminished value protection can help customers receive greater value at trade-in. And the benefits granted by this protection extend to TPAs and dealers as well. With diminished value coverage, dealers have a tool that promotes customer loyalty, and TPAs come out on top by being a true go-to for both dealers and their customers.

Talk about the features

Beyond the front-line benefits of diminished value warranties, customers on Fortegra’s diminished value program can enjoy protection and peace of mind for up to 84 months. Blanket coverage plans are available for $2500 and $5000 respectively, and optional coverage can range up to a max benefit of $10,000. (That’s a lot of protection.)

And diminished value warranties aren’t the only type of auto coverage a TPA can bring to the table. Service contracts, key replacement plans, roadside assistance, and others can provide big benefits that produce positive returns. In a survey that targeted vehicle users who recently paid a claim on an F&I product, 86 percent said they’d purchase the product again because it was handled so well by their dealer.

With the right plans in place, dealers and TPAs together can make the most of customer relationships. While accidents may not always be the best topic of conversation, when customers know they’re taken care of and how they can actually benefit from accidents in the long run, they can enjoy added peace of mind with you on their side.

To learn more about Fortegra’s diminished vehicle value programs, visit fortegra.com.

Fortegra® is the marketing name for the extended warranty operations of Fortegra Financial Corporation and its subsidiaries.

Categories: Automotive

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