Is a New Or Used Car Extended Warranty Worth It?

The debate goes on about whether or not we should purchase an extended vehicle warranty for our cars. The only way to figure out if it’s worth buying an extended vehicle warranty is to do comparisons of quotes. You can find lots of extended warranty companies online, so you’re options are quite extensive. Now, when it comes to buying an extended warranty through a dealership — it’s definitely not worth it. There, you’ll end up spending up to $2,000 more than you have to. A lot of great deals are out there on extended warranties — some even pay just $200 for full benefits. Looking around will allow you to find something that fits within your budget and that you feel is worth purchasing.

The first comparison to make is between the dealership and the actual extended warranty company. Would you rather pay $2,000 for a warranty or $200? Of course you picked $200, so it only makes sense to do your search online instead of dealing with dealership extended warranties. Even the most minor of repairs could run you hundreds of dollars; this will make you see that having a warranty could be very beneficial. Mechanics these days run between $50 to $100 per hour. Even repairing your air conditioner could end up costing you more than a 36 month warranty that covers your entire car.

What you’ll pay for your extended vehicle warranty all depends on where you purchase it from. Of course, if you’re buying it from a dealership, you can expect to pay a whole lot more. Luckily, there are a lot of legit extended vehicle warranties out there that you can get great deals from; and they’re all waiting for you to find them, so that they can give you a quote. When you begin searching the internet for extended warranties, compare the quotes and coverage offered to see which of them is the best to go with.

Reinsurance For Auto Dealers – Is It Worth It?

Reinsurance can be defined as an agreement between two insurance companies. The reinsurer in this arrangement is the second business and provides risk management for paying claim shares arising from initial insurance company. Auto dealers are now embracing owning reinsurance companies to enjoy coverage for different policies in their contracts.

Reinsurance programs offer an opportunity to enjoy underwriting profits as well as investment income from finance and insurance products sold to customers in an auto dealership. Apart from automotive dealers, reinsurance can also be enjoyed by other service providers. For auto dealer, the commonly reinsured items include vehicle service contracts, GAP and aftermarket among others.

A smart auto dealer will always be on the lookout for hidden profit opportunities and vehicle service contract reinsurance is a major wealth creation opportunity available to the dealers. There are lots of companies offering competitive programs and availing them to independent dealers and franchises as well. The reinsurance concept for auto dealers comes with a number of benefits to them and this is probably what have made the programs popular among the dealers. Here are some of the benefits that make the reinsurance for auto dealers worth trying out.

The reinsurance programs offer auto dealers control over own insurance company

With this kind of control, auto dealers are able to enjoy premiums generated from different vehicle service agreements and aftermarket insurances. The insurance company holding premium reserves provide the owner with new wealth and profit creation source. When these reserves are reinsured, the risks to selling dealer are greatly limited.

The programs ensure efficient cash flow and profit maximization

Reinsurance programs have a reliable remittance system. Any warranty repairs offered by the dealer get deducted from premiums submitted and this in turn accelerates payment to the dealer for the repairs made.

Reinsurance for auto dealers also offers flexibility in customizing terms and coverage’s

This is because there are high probabilities of weekly funding of the premium accounts, full accounting as well as reporting. When the dealer is able to customize the coverage and terms, there is complete management control of the reinsurance company thus maximization of the profit opportunities.

The programs make it easy to pay claims

Auto dealers who consider owning reinsurance companies always have money available to settle claims. The programs basically eliminate the situations where most dealers have had to foot the cost of claims for lack of backup funding. Dealers therefore enjoy more security when they take up reinsurance programs matching their exact needs.

The contracts help in improving customer satisfaction

There is really nothing more important that customer satisfaction for any given business. Vehicle service contracts offer some of the best ways of improving customer satisfaction and also provide confidence in sales process improving the dealership at the end. Reinsurance offers any auto dealership the opportunity to grow to the next level by offering claims to customers with the increased control over the reinsurance company. When customers are happy, the dealership is able to maintain a loyal clientele thus increasing growth and expansion opportunities.