Businesses aren’t required to offer home and auto warranties to their clients. Even so, there are some good reasons to consider doing so. These policies are very beneficial to anyone who owns a home and vehicle. At the same time, they help you build brand awareness and brand loyalty.
How do Home and Auto Warranties Work?
To sell your clients on the value of a home and/or auto warranty, it’s important to understand how these policies work. These forms of coverage aren’t as common as home and/or auto insurance. Even so, they provide your clients with many great benefits.
A home warranty covers home systems (i.e.; plumbing and HVAC) as well as home appliances. If something breaks down, a company will repair the damage or even replace the system or unit at no cost to the homeowner. These services aren’t covered by a home insurance policy and can save a homeowner thousands of dollars. An auto warranty provides repair coverage for up to five years, depending on the policy’s time frame. It covers the cost of labor. It also covers the cost of roadside assistance. Furthermore, an auto warranty can also cover the cost of paying for a rental car while the policyholder’s car is being repaired.
These policies aren’t “one size fits all” contracts. Rather, they can be adapted to suit the buyer’s needs. When buying a home warranty, you can choose one that covers home systems, home appliances, or both. You can also select a warranty that meets specific needs, depending on the age of the home and the condition of its appliances and systems. This saves you money while allowing you to provide the most important benefits for homebuyers. Auto warranties can also be tailored to meet buyer needs. There are comprehensive policies that can cover pre-existing problems in used vehicles. There are also limited policies that would suit the needs of people buying a brand-new vehicle.
What are the Benefits of Offering a Home and/or Auto Warranty to Your Clients?
Realtors and homebuyers alike win when realtors offer a free home warranty policy. A home warranty can increase a home’s value and thus the realtors’ commission. It increases the odds of a home selling faster than it would otherwise. It gives buyers peace of mind. They know they won’t have to deal with appliance or home system repairs right after investing in the home. As the current real estate market struggles with a decrease in demand due to rising mortgage interest rates, realtors who offer home buyers a free home warranty are sure to stand out from the crowd and earn good online reviews and word-of-mouth recommendations.
Businesses selling any type of vehicle can likewise benefit from offering customers an auto warranty policy. It’s a perk that will help your dealership to stand out from your competitors. It builds trust in the seller. This is because the buyer knows that, if something goes wrong with the car, the cost of repairs and parts replacement is fully covered. A 2018 survey found that only a measly 8% of consumers trust car salespeople. Thus, anything an auto seller can do to build trust in today’s market will likely enable the dealer to grow his or her client base. It can also boost brand loyalty which keeps old clients coming back to the business. This is a particularly important benefit for those selling used cars. Even so, dealerships selling new cars should also consider including a longer warranty than that offered by the manufacturer. Such a warranty not only ensures the buyer isn’t on the hook to cover the costs of a defective part but also provides the buyer with a free rental vehicle should the need arise.
At the same time, realtors and auto dealerships aren’t the only ones who can benefit from offering free home and/or auto warranties. Any company that offers employee benefits may also want to consider the benefits of providing one or both policies. The current labor shortage is making it difficult if not impossible for many companies to find the employees they need to remain afloat. Retaining employees is also hard, especially if employees have specialized expertise or qualifications. Home and auto warranty policies can save consumers tens of thousands of dollars. They also save policyholders a great deal of time, hassle, and discomfort. These are ideal benefits that can encourage employees to remain with a business instead of looking for employment elsewhere. It’s also worth noting that these policies can lower worker stress, which in turn improves their productivity. The absenteeism rate for stressed employees is 60% more than it is for non-stressed employees. Furthermore, when stressed employees do come to work, their productivity can be up to 77% less than it would be if they weren’t feeling stressed. Offering a home and/or auto warranty is a wise investment that will enable your company to grow by leaps and bounds long-term. It’s also one well worth considering if you run a company that specializes in offering employees benefits to businesses.
Capital Home and Auto has been providing top-tier home and auto warranties to businesses for over twenty years. The company offers flexible policies to meet client needs and has a high standard of customer service. We work with a range of businesses in multiple industries to enable them to meet their client’s needs and expectations at a reasonable cost. If you would like to learn more about how home and auto warranty policies can grow your business, or would like to start the process of receiving custom quotes to meet your needs, get in touch with us, and we’ll be happy to provide you with fast, accurate answers and assistance.
Sources
What Is A Home Warranty? | Rocket Mortgage
The Importance of Getting a Car Warranty (mydrivecar.com)
America’s Most & Least Trusted Professions [Infographic] (forbes.com)
