AutoTech Protect Releases Technology-Focused Service Contract
May 24, 2016
CARMEL, Ind. — AutoTech Protect, a technology-focused service contract, is set to launch on May 25. The product will be available in 47 states and offers a cheaper service-contract alternative for customers who want to protect their vehicle's in-car tech but object to traditional coverage due to price constraints.
AutoTech Protect will cover the technological components that today’s vehicles are often equipped with, including touchscreens, GPS/Navigation systems, Bluetooth components, and interactive radio systems.
The service contract was designed as an option for dealerships to offer to consumers who won’t purchase an exclusionary service contract due to price or payment constraints. According to the company, the service contract can be offered at half the retail price of an exclusionary plan.
“We don’t envision this as being the primary service contract sold in the F&I office,” said Shawn McCool, founder of AutoTech Protect. “It is designed to be offered after a customer has rejected the lead service contract offering rather than compete with it. Therefore, if a consumer purchases AutoTech Protect, it is truly “found” revenue for the dealership, without overlap or cannibalization of their lead service contract plan. And data from our 15 store pilot confirms this. The lead service contract provider’s volume was not affected. Yet, over 15% of the customers that declined the lead provider’s plan purchased AutoTech Protect, again resulting in “found” revenue for the dealership.”
The product, which is fully insured, is available to both franchise and independent dealers. The company will also limit the number of agents who can market the product in a given geographic area, officials said.
“This is a win-win-win for the consumers, dealers and agents. AutoTech Protect provides our agents with another great product to market, and a potentially exclusively one, from their portfolio. And dealers now have a new opportunity to offer a cheaper alternative service contract to their customers that decided not to buy their lead exclusionary plan,” said McCool.
AutoTech Protect will be available for both new and used vehicles up to 10 years old and with 100,000 miles on the odometer. Administering the product is American Colonial Administration in Dublin, Ohio, and the insurance partner is Dealers Assurance Company, which is rated "A-" by AM Best.