Are You a Car Company Founder Providing Insurance? You Should Read This.

On October 27, 2018 By admin

Are You a Car Company Founder Providing Insurance? You Should Read This.

Running a car company is good business with the right location, pricing, and marketing. It provides options for people who see cars as a necessity than a vanity. As for enthusiasts, car companies serve as treasure chests where they can find their most prized collections that have been tagged as vintage or old school.

But how else do car companies augment their bottom line when the economy is not so good and people are trying to hold back from buying another car or replacing the old ones?

Some car companies resort to selling accessories and beefing up their service, which is actually a good idea. This move makes your place a one-stop-shop for vehicle needs. However, not all car accessories are necessary for a vehicle to move, like customized leather seats or the cute Hello Kitty side mirror cases. However, there is one car component that all car owners need and must buy to ensure the welfare of their vehicle— a car insurance. Car insurance makes sure that your vehicle and third parties involved in an accident are well compensated for possible income loss that might have resulted from the trouble that happened.

We’ve put together some ways on how car insurance can work for your company’s figures:

1. Premiums paid
Premiums are the costs of securing a property, in this case, your customer’s car. Every insurance policy needs to pay a premium to make sure that the vehicle will be covered in case of damages. The cost of premiums vary depending on the level of coverage the property gets. For cars or vehicles, you would often hear the words, “comprehensive”, “acts of nature”, and “assault”. This part of the business also determines the cost of ensuring the vehicles, the cost of managing the policy, and the your income. This is paid in various ways like annually, semi-annually, quarterly or even monthly. A lot of car owners consider quarterly payments because it is not too heavy on the pocket and does not take too much time to settle. So remember to allow these various types of payment plans so customers will always choose you.

2. Riders
There are basic insurance packages that are offered by non-life insurance companies. Sometimes, it only covers accidents. Should you need more coverage, a “rider” is usually required. A “rider” is an additional coverage that has to be paid to get additional benefits. It also comes with costs and expiration. This service is often expensive because it pays attention to specific problems that may arise like vandalism or assault. This is where most insurance or car companies earn revenue. For example, a customer bought a vandalism coverage rider for her car. It is an upfront payment rider that has to be renewed annually for continuous coverage. Assuming the coverage began in October 2018 and no accident happened until October 2019, this means that the premium paid by the customer will now be part of your company’s sales figures.

3. Maturity
Maturity is the friend of non-life insurers. When the maturity of a policy expires, it means the car company has no more liability to the car owner. Whatever happens to the vehicle is no longer the problem of the car provider. This feature of insurance is probably the reason why a lot of people are iffy about getting one. Others think that it is money thrown away if nothing happens to the vehicle during the term of coverage. However, what they fail to realize is that insurance is protecting them from unforeseen circumstances. Because who knows what lies ahead of that curb by the hill, right?

To continue the coverage, car owners must renew or buy a new policy. However, tracking maturities can be difficult and tricky because sometimes riders are bought separately from the basic policy. That is why a lot of car companies employ the services of an automotive business solutions system like we do to make sure all the policies are tracked and premium payments are recorded.

4. Assessment of Damage
This is where a lot of insurance companies and car owners butt head. That is why an automotive business solution is important for situations like these. Here at CalAtlantic, we have highly customizable automotive business solutions that can record previously filed claims that can help assess future damage of vehicles like the DealTraxs or the ServiceTraxs. This system can help car businesses to determine how much the policy should pay or should cover given the amount of damage to be repaired or replaced. A good archiving system is the key to correct damage assessment. This feature will make sure that you do not underpay or overpay.

5. A business with a purpose
Insurance are often neglected. People don’t see the need for one unless they encounter an accident and has to shell out huge amounts of money. This is the reason why car companies must sell insurance policies as well. Protecting the vehicle of your customer is part of the services that a good car company should offer. Making your customers prepared for unseen circumstances keeps them from spending more in the future. Since you made sure these events are well taken care of, this sends a good message to your future clients.

Selling insurance in your car company makes your business a one-stop shop for car owners. Insurance business is a trust business, if your customers trust you enough to buy a car from your store; chances are they will trust you enough to provide them the protection their vehicle needs. It is up to the agent to offer the most comprehensive insurance package that gives the highest value for money for your clients. The insurance claims industry works for car companies that knows their market who can offer the most diversified yet convergent coverage for their clients.

If you wish to read more about the possible automotive business solutions you can tap to get you started on your car and insurance business, check our website to find what you need. Our products and services are highly customizable which means we can put together a system that can work best for the business model that you want.

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