Manufacturers offering pay-as-you-go (PAYG) warranties benefit from customer relationships which are on average 15 months longer, according to research from Allianz Global Assistance.
Allianz, which runs a roadside assistance programme for Mazda, as well as a global insurance venture with Volkswagen, says PAYG schemes boost customer retention by providing a flexible form of financial reassurance.
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They can provide interim cover after a warranty has expired, for customers who are in the process of changing vehicles, such as buyers who are awaiting delivery of a new car and want a short-term policy.
Liz Grindell, head of warranty and insurance products for Allianz Global Assistance, said the company’s PAYG schemes were up 15% year-on-year in 2012, which she attributed to the "convenience and flexibility" of such products.
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