EasyCare’s managing director, Rob Volatile, said TechCare’s coverage is a reasonable fallback from full coverage contracts for price-sensitive customers. Consumers can easily relate the difficulties and costs posed by smartphone failures to vehicle technology, he said.
“Modern cars are more and more like rolling computers,” said Volatile, adding that technical repairs are different from mechanical repairs.
“That replacement can usually be found at the dealer for OEM parts. As a consumer, you have to ask yourself, ‘Do I want an OEM part that will fix the tech in my car?’ The answer is pretty much. 100% yes,” said Volatile.
TechCare was also created with the future in mind. Specifically, the increase in EV ownership that often misleads consumers about the coverage that Volatile’s memo requires. EasyCare reports that he has more than 70% of EV components in common with gasoline vehicles. Volatile says that even though he’s done away with the engine, EVs also need repairs, and TechCare is one of his ways of customizing it.
TechCare’s adoption rate has been low, but Volatile, who has worked in the finance and insurance industry for 30 years, said its popularity is typical of new products. He expects his interest to grow significantly over the next six to eight months.
AUL Corp. also offers technology-only service contracts, which began in 2020 and are intended to cover vehicle technology systems rather than individual components, said Protective Asset Protection, which acquired AUL in May. said Paul McCarthy, vice president of sales for
Launched in response to demand from dealers, AUL-Tech, like TechCare, is aimed at budget-conscious consumers who are confident in their mechanics but unsure about automotive technology, McCarthy said. increase. Prices vary widely, but AUL-Tech can cost him as much as 50% less than a full coverage contract.
For some repairs, McCarthy says consumers think they can “fix it by watching a YouTube video.”
But tech coverage is attractive, he said, not only because the tech components are expensive, but because they’re not a do-it-yourself job.
JM&A Group created a technical service contract at the request of one of its largest dealer clients, said Chris May, director of product innovation and intelligence at JM&A. It sells well to the dealer’s customers, but tech-only products aren’t sold at most dealers, he said.
When dealers ask JM&A for product recommendations, the group suggests products with the highest consumer satisfaction, i.e. products with the most comprehensive coverage.
Misconceptions about what technology-only products cover can leave consumers unsatisfied. But May points out that the group’s dealers who actually sell it are selling well.