CHESTERFIELD, Mo.—A new report shows that 42% of consumers estimate their vehicle service contracts and ancillary protection plans have saved them an average of $1,000-$2,000 on repairs or parts replacements.
The survey from Protective Asset Protection, a provider of F&I programs, shows the top areas most likely covered under a vehicle service contract include steering (47.2%), technology feature service (44.4%), brakes (44.4%), electrical components (41.7%), and drive axels (41.7%).
Areas such as transmission and suspension repairs (27.8%) showed the smallest responses from drivers using protection plans.
Nearly half of those surveyed (51%) said they have purchased a protection plan for their vehicle, and of those opting for a vehicle service contract, over half (53%) said they have needed to use their benefits on their current vehicle. The majority of respondents (34%) said they currently drive a small CUV/SUV for their vehicle. Most said they’ve used their benefits on general repairs (58%), while another 22% said they’ve used benefits on parts replacements.
Ancillary Protection
Regarding Ancillary Protection Programs, 69.4% said they’ve needed to have repairs on tires and wheels, 58.3% said windshield repairs, and 47.2% said exterior appearance products such as paintless dent removal. Respondents said they’ve needed to use Ancillary Benefits due to road hazard repairs (39%), accidents (17%), and parts replacement (11%).
“Vehicle service contracts can be extremely valuable to drivers, especially since there are so many reasons out of the driver’s control that cause them to go into effect,” said Rick Kurtz, senior vice president of distribution for Protective Asset Protection. “With high performance tires more sensitive to road hazards, and increasingly complex vehicle technology, there are a bevy of reasons why extra protection can equate to thousands in savings over the life of a vehicle. And for a dealer, these F&I products offer help with shrinking margins, as well as improved customer satisfaction.”