A new survey by Allianz Worldwide Partners UK has revealed that 36% of motorists feel that “clear and easy to understand policy wording” may influence their decision to purchase a warranty.
The insurer found that a surprising number of those surveyed were unclear about exactly what items are covered in a warranty policy, with many believing paintwork, windscreen wiper blades and upholstery to be covered.
Liz Grindell, Head of Warranty at Allianz Worldwide Partners UK explains: “Our research confirms that 45% of motorists are still unsure about what’s exactly covered by a warranty offering, and this lack of understanding reduces their likelihood to buy. Simply put, it’s important to assist customers’ understanding of a warranty to help them decide if it’s right for them.
“This is backed by analysis of consumer activity on our online warranty sales platforms. Visitors prefer ‘what’s covered’ tables, FAQs and jargon busting glossaries over paragraphs of detailed text. And it’s important to note that customers like to be provided with this type of information when interacting directly with dealers
.”The data also points to the financial prudence of warranties as being undersold by the trade. 45% of drivers stated a preference to deal with problems as and when they happen. This suggesting a lack of understanding by motorists of the financial planning and savings benefits that a warranty can bring in the event of an unexpected vehicle fault.
Liz Grindell concludes, “When creating marketing strategies we endeavour to put ourselves in the customer’s shoes. What would they want to see to help them make warranty decision? A great litmus test is to ask non-motor industry friends and family to review a warranty wording. Crucially ditch the technical speak and the jargon.”