MemberCare – Vehicle protection & solutions for your credit union

Three Reasons a Vehicle Service Contract Makes Sense for Your Members

MemberCare — Thu, 21 Apr 2022 15:23:43 +0000

If there’s one thing we’ve all learned over the last two years, something completely unexpected could be right around the corner. How can you help your members be ready?

One of the most common surprise household expenses comes as no surprise to anyone who has owned a car. You can’t see into the future to know exactly when your vehicle will need service or how much it’ll cost, but you can almost guarantee it will happen. However, you can offer your members peace of mind for when the inevitable happens. Here are just three of the reasons a vehicle service contract makes sense for your members more than ever.

The Average Vehicle is Getting Older

Just a few decades ago, the average lifespan of a vehicle was around 100,000 miles. With new technology and a focus on making every part better and more efficient, it’s now much more common to get closer to 200,000 miles. The average age of US cars reached 12 years old in 2021, an all-time high.

But vehicles that fall in the six-to-twelve-year-old range may need more advanced repairs sooner than later. Typical repair costs average $900 and, in many cases, can go much higher. If your members are like most Americans, an expense that high could be a huge problem. Offering a vehicle service contract at the time of sale can help your members offset the risks down the road. The cost of a vehicle service contract may be much more manageable than a $1,000 timing belt or complete engine replacement.

Not an expert on the cost of average repairs? Use our infographic, “Are You Ready to Talk About the Four Costs of Vehicle Ownership?” to highlight how vehicle ownership can add up for your members.

Used Car Sales are Through the Roof

The microchip shortage in the summer of 2021 significantly impacted the number of new vehicles arriving on lots, sending more consumers than ever to purchase used vehicles. As a result, Americans bought an unprecedented 40.9 million used vehicles in 2021.

That means more cars on the road vulnerable to the cost of repairs that come with age. With a vehicle service contract, your members can have confidence that their investment is protected even if the factory warranty is coming to an end. And because the inventory shortage has pushed many consumers to buy pre-owned for the first time, offering comprehensive vehicle coverage can give them peace of mind.

The Cost of Care is Rising

From the gas station to the grocery store, consumers feel the crunch of cost of living increases across the board. More than one in five Americans struggle to pay their bills every month. Over 60% can’t afford an unplanned expense of over $1,000 without going into debt.

As remote working, postponed travel, and high gas prices drove down the average miles traveled per vehicle over the last two years, costs of repair have gone up. Combined with rising costs everywhere else, consumers spent 124% more money repairing and maintaining their cars in 2020 than in 2019. Towing was up 24%. The cost of tires grew by 11%. Overall, general repairs and maintenance costs increased by over 7% per transaction from 2019 levels.

Your members may have been lucky enough to avoid repair bills since costs started to skyrocket, but their luck can only last for so long. Although financial experts recommend setting aside money each month for vehicle maintenance and repairs, that money is often eaten up by other expenses. A vehicle service contract included in their loan balance can have little impact on their monthly payment but pay off big in the long run when their luck runs out.

Protecting your members from unexpected repair costs if a breakdown occurs is a huge opportunity. As valued members of your credit union, they deserve best-in-class vehicle coverage for the best value. Whether they’re buying a car for themselves or a loved one, make it a worry-free experience.

The post Three Reasons a Vehicle Service Contract Makes Sense for Your Members appeared first on MemberCare - Vehicle protection & solutions for your credit union.

A Look Under the Hood: What Exactly is a Vehicle Service Contract?

MemberCare — Wed, 29 Sep 2021 14:07:24 +0000

One thing your members can all agree on is that buying a vehicle can be both exciting and nerve-racking at the same time. Finding the perfect car to fit their lifestyle is a reason to celebrate, but worrying about the cost of unexpected problems can be stressful. Your credit union can help give them some peace of mind by offering vehicle service contracts to help protect their new investment.

Vehicle Service Contract 101

A vehicle service contract (VSC), also known as an extended warranty, can cover certain mechanical issues after the manufacturer’s warranty expires. If your members have repairs that are covered by the contract, they’ll submit a claim to the VSC provider, who pays the repair shop directly. By partnering with a VSC provider that offers different levels of coverage, chances are there will be a solution that fits your members’ specific needs and budget.

Why Vehicle Service Contracts Matter

It’s important to understand some of the market forces shaping today’s automotive market. Supply chain issues are limiting new vehicle supply, and consumer searches for used cars have doubled in just the last year. This demand has pushed prices higher, meaning some buyers could be paying more than they initially budgeted for. These rising costs plus the limited budget that most Americans have to spend means there’s opportunity for your credit union to help members avoid hardship.

Help Your Members Understand

Your members may not be familiar with the concept of a vehicle service contract. Ask these questions to illustrate what a VSC is and how it can help:

Do you expect to hit the mileage limit covered by the manufacturer’s warranty before you trade in the vehicle?
- Your member would be 100 percent liable for any repairs needed from that point on. A VSC can ease that burden by covering costs after the warranty expires.
How long do you plan to own the vehicle?
- Manufacturer warranties expire after a few years. A VSC can continue to protect your member past that point.
Do you know the costs of the most common repairs?
- Labor and parts can add up quickly. Would they be able to pay out of pocket for these common repairs? Compare these costs to the small monthly increase incurred by adding a VSC to their payment.
Do you have the means to cover repairs when the vehicle is out of warranty without incurring debt or interest charges?
- Putting these expenses on a credit card is a high-cost solution once you factor in fees and interest. Highlight the combined expense of parts and labor, calculate the interest they could face if they cover the cost with a credit card, and compare it to the minimal cost of the vehicle service contract.
Will you trade it in towards your next purchase?
- Even small problems can make a huge difference. Your members can increase their trade-in value by making sure mechanical issues are covered while they own the vehicle.

Extra Credit

While the goal of a VSC may be keeping your members on the road by covering the costs of repairs, your credit union can go the extra mile by partnering with the right provider. MemberCare coverage includes benefits such as:

Road Hazard Tire & Wheel
- Unlimited repair or replacement of tires and/or wheels that are damaged due to road hazards on public roadways
Key Replacement
- Covers the repair or replacement of lost or stolen keys or key fobs on your covered vehicle, as well as any additional keys on your key ring
Windshield Repair
- Covers unlimited repairs of front windshield chips and cracks up to two inches in diameter
Cosmetic Wheel Repair
- Covers unlimited repairs of cosmetic damage to alloy or steel wheels.
Paintless Dent Repair
- Covers unlimited repairs of dents and dings on sheet metal body panels up to four inches in diameter
24/7 Emergency Roadside Assistance
- Assists with flat tires, battery jump-starts, fuel delivery, lockout services, and towing
Substitute Transportation
- Covers rental car and rideshare services (e.g., Uber, Lyft, etc.)
Trip Interruption
- Reimburses costs for meals and lodging due to mechanical breakdown while away from home

Whether your members are buying a car for themselves or a loved one, it should be a worry-free experience. Your credit union can offer best-in-class vehicle coverage for the best value—keeping members on the right track and protecting them from unexpected repair costs if a breakdown occurs.

The post A Look Under the Hood: What Exactly is a Vehicle Service Contract? appeared first on MemberCare - Vehicle protection & solutions for your credit union.

MemberCare Launches Mechanical Breakdown Insurance Designed to Help California Credit Unions Support Members

MemberCare — Fri, 02 Apr 2021 14:38:55 +0000

NORCROSS, GA. April 2, 2021 – MemberCare, a leading provider of vehicle protection products designed exclusively for credit unions and part of the APCO Holdings family of brands, announces the launch of mechanical breakdown insurance (MBI) coverage created to help credit unions in California protect members from the risk of unexpected repair costs associated with owning a vehicle.

With the Federal Reserve reporting that nearly 40% of Americans are unable to afford a surprise $400 repair bill, mechanical breakdown insurance can be critical to help members avoid some of the stress associated with ownership and extend the life of their vehicles. MemberCare’s MBI program is designed to give credit unions flexible options to help protect members from unexpected repair costs, provide them peace of mind if a breakdown does occur, and increase their resale value.

“At MemberCare, we continue to look for ways to help our partners offer better value and reliable coverage that enhances the member’s ownership experience. We’re excited to bring MemberCare’s mission to the California market,” said Brian Becker, Executive Vice President of APCO Holdings, LLC.

MemberCare MBI offers three levels of coverage and goes even further than other providers with added member convenience benefits like 24/7 emergency roadside assistance, substitute transportation, trip interruption protection, road hazard tire and wheel, key replacement, paintless dent repair, and windshield repair. Plus, MemberCare MBI coverage is the industry’s only Motor Trend^® Recommended Best Buy. With this distinction, credit unions can be confident they are protecting their members by partnering with a provider committed to providing industry-leading protection products, unrivaled customer service, and an outstanding claims experience.

“Since 1984, APCO has maintained a relentless focus on providing industry-leading driver benefits in a very competitive market. MemberCare coverage is a result of that focus—built to align with credit unions’ mission to provide impeccable value to members, while providing our partner credit unions transparent vehicle coverage in a very competitive market,” says Becker. “We look forward to delivering the same commitment and focus to California as we have the rest of the country.”

For more information, visit MemberCare.com.

About MemberCare

MemberCare provides credit union members with a suite of vehicle coverage designed to improve the vehicle buying and ownership experience—all backed by a best-in-class claims process. We provide credit unions with collaborative support and innovative tools to help them reach their goals. MemberCare is part of APCO Holdings, LLC, which has protected over 11 million customers and paid over $3.5 billion in claims. MemberCare has the industry’s only vehicle protection products named a “MotorTrend Recommended Best Buy” and has an A rating from the Better Business Bureau. For more information about MemberCare, please visit membercare.com. For more information about the APCO Holdings family of brands, please visit apcoholdings.com.

Media Contact:

marketing@apcoholdings.com

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MemberCare Launches Edge, Giving Credit Unions the Chance to Offer Even More Peace of Mind

MemberCare — Tue, 23 Feb 2021 18:31:01 +0000

NORCROSS, Ga. — February 23, 2021 — MemberCare, a leading provider of mechanical breakdown coverage designed exclusively for credit unions, announces the launch of Edge, a bundled suite of automotive protection products created to provide additional peace of mind for credit union members.

MemberCare offers several unique levels of mechanical coverage that allow credit unions to cater to each member’s specific needs, helping them protect their investment from unforeseen repair costs. With the addition of Edge, credit unions can now offer additional coverage for both new and used vehicle purchases with a suite of benefits unmatched in the industry. Credit unions can cater to each member’s needs by offering MemberCare Edge as supplemental coverage for buyers who have also purchased a vehicle service contract or as a standalone package for those who wish to protect the appearance of their vehicle while enhancing resale value. Benefits include:

• Road Hazard Tire and Wheel
• Cosmetic Wheel Repair
• Key Replacement
• Paintless Dent Repair
• Windshield Repair
• 24/7 Roadside Assistance

“Credit unions are adding members at an extraordinary pace, and they’re looking for new ways to shield those members from unanticipated financial difficulty. MemberCare Edge gives credit unions the ability to provide an enhanced level of protection by offering the best coverage possible for some of the most common expenses that can come out of nowhere,” says Brian Becker, Executive Vice President, APCO Holdings, LLC, parent company of MemberCare. “Aside from routine maintenance already factored into the cost of ownership, expenses like lost keys, flat tires, or cosmetic damage add up and can have a significant impact on a member’s budget. The peace of mind that comes from knowing these costs are covered further strengthens the relationship between credit unions and their members. That’s our ultimate goal, and why we continue to look for ways to offer real value and reliable coverage. We continually seek to align with the value and service levels expected by credit unions for their members.”

Since 1984, APCO has maintained a relentless focus on providing industry-leading driver benefits in a very competitive market. MemberCare coverage is the industry’s only Motor Trend® Recommended Best Buy. With this distinction, credit unions can be confident they are protecting their members by partnering with a provider committed to providing industry-leading protection products, unrivaled customer service, and an outstanding claims experience.

For more information, visit MemberCare.com.

About MemberCare
MemberCare provides credit union members with a suite of vehicle coverage designed to improve the vehicle buying and ownership experience—all backed by a best-in-class claims process. We provide credit unions with collaborative support and innovative tools to help them reach their goals. MemberCare is part of APCO Holdings, LLC, which has protected over 11 million customers and paid over $3.5 billion in claims. MemberCare has the industry’s only vehicle protection products named a “MotorTrend Recommended Best Buy” and has an A rating from the Better Business Bureau. For more information about MemberCare, please visit membercare.com. For more information about the APCO Holdings family of brands, please visit apcoholdings.com.

Media Contacts:
Sarah Baker
Communication Manager
Tel: 404-769-7708
Email: sbaker@apcoholdings.com
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Are You Ready to Talk About the Real Cost of Vehicle Ownership?

MemberCare — Thu, 13 Aug 2020 20:06:30 +0000

After purchasing a vehicle, the last thing your members want to think about is what may happen a few years down the road—or even just on the way home. But the reality is that as soon as they drive off the lot, there’s no telling what’s around the corner.

Aside from the routine maintenance and wear and tear they may already be factoring into the cost of ownership, unexpected costs like a major engine repair or air conditioning replacement (and the labor that goes along with it) can really add up.

Comprehensive Vehicle Coverage (CVC) is a great investment to save your members from unexpected, and often hefty, repair bills for common repairs like the ones featured here. Here are some talking points to help you cover what the cost of ownership can add up to, beyond their monthly payment.

1. Manufacturer Warranty vs. Expected Length of Ownership
The average buyer keeps a car for close to six years, but with both time and mileage limitations, a manufacturer’s warranty can run out much sooner. Make sure you compare the warranty’s expiration date with the amount of time the buyer expects to be in the vehicle to show the value of layering on additional protection.

2. Tires & Wheels
Prices for new tires keep increasing, averaging $525 to $750 to replace all four tires. And it’s a problem no one is immune to, no matter how strictly they follow suggested maintenance schedules. Road hazards like glass, potholes, and nails can’t always be avoided, but making buyers aware of this expense and offering a tire and wheel repair and replacement plan can help them dodge a major setback for their wallet.

3. Keys
It’s something everyone can relate to—keys rank as the third most commonly misplaced item, and sometimes they’re never found. But with advances in key technology, the price to replace and reprogram “smart” keys can be $500. Adding a key replacement and lock-out protection plan can be a low-cost solution to this highly probable predicament.

4. Cosmetic & Safety
Your customers want their cars to look new and fresh for as long as possible. But accidents happen, and fixes for chipped windshields, dents and dings, and scratched wheel rims can range from $50 to over $1,500. To highlight the value of your appearance protection plans, make sure your buyers know the average cost of body repairs and that just one or two dents can make a huge difference in what they’re offered when it’s time to trade their vehicle in. Plus, in the event their car is stolen and not recovered, they could be out of pocket more than $500. Etch makes their vehicle less desirable to thieves and reimburses for incidentals like insurance deductibles.

Click here to download our handy infographic on these Four Costs of Vehicle Ownership you need to be prepared to discuss with every buyer in the F&I office to help them understand the value of the protection products you’re offering.

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APCO Offers Credit Union-Targeted F&I Benefits With MemberCare Launch

MemberCare — Tue, 02 Jun 2020 08:00:38 +0000

APCO Holdings, LLC announced the successful launch of MemberCare, a new brand of vehicle protection products that will be sold through credit unions. MemberCare offers credit unions the ability to provide additional value to their members by helping them protect their new and used-vehicle purchases with a vehicle service contract, among other vehicle protection benefits, through a hyper-focused and member-centric offering.

With over 11 million drivers protected and more than $3.5 billion paid in claims, MemberCare offers three unique levels of coverage so that credit unions can cater to each member’s specific needs, helping them protect their investment from unexpected repair costs, increasing their resale value and providing them the peace of mind if a breakdown does occur. In addition to the traditional vehicle service contract, MemberCare offers the option for road hazard tire and wheel coverage, key replacement, paintless dent repair and windshield repair. Plus, every MemberCare contract comes with 24/7 emergency roadside assistance, substitute transportation and trip interruption reimbursement.

MemberCare is the only vehicle protection brand to be named a Motor Trend® Recommended Best Buy in the credit union space. With this distinction, credit unions can be confident they are protecting their members by partnering with a provider committed to providing industry-leading protection products, unrivaled member service, and an exceptional claims experience.

APCO Holdings partnered with Allied Solutions, LLC., in late 2019 to be a distribution partner for MemberCare, Allied supports over 4,000 credit unions with more than 150 products and solutions. Allied chose APCO for its member-centric focus, and unparalleled reputation in the vehicle product protection segment, “APCO is a very vibrant, significant player in the marketplace who has taken the expertise and experience they have with their consumers and transitioned that into a customized product and solution for the credit union industry. ” said Pete Hilger, President & CEO, Allied Solutions.

“At APCO Holdings, our mission is not to write as many policies as we can. It’s to offer real value and reliable coverage—and to pay every legitimate claim with no hassle or delay,” said Brian Becker, Executive Vice President, APCO Holdings, LLC. “Allied Solutions recognized our alignment with the credit union movement and has given us the opportunity to bring our unparalleled track record and core values to market.”

Citing an Experian report that showed as many as one in four Americans had joined a credit union by 2017, Becker noted credit unions are adding members at an astonishing clip as they shift focus on direct lending — and looking for new ways to protect those members from undue financial distress in the process.

“MemberCare is a mission,” said Becker. “With the most modern protection benefits, a relentless focus on member experience, and a unique desire to be transparent with our partners, credit unions have ultimate peace of mind. Our purpose is the credit union’s member so we continually seek to align with the value and service levels expected by credit unions for their members.”

For more information, visit MemberCare.com.

About APCO Holdings, LLC. (APCO)
APCO, established in 1984, is a leading marketer and administrator of extended vehicle service contracts, warranties and other related products sold primarily by automobile dealers located throughout the United States. APCO has expanded its offerings over the last decade to include market leading video e-mail and service customer CRM technology, as well as leading edge training for dealership sales and finance teams. The company markets its products using the EasyCare and GWC brands, as well as other private label automobile manufacturer brands, through a network of independent agents and an internal salesforce that specialize in consulting with and servicing the automotive dealership markets. EasyCare and GWC Warranty are the only “MotorTrend Recommended Best Buy” brands in the automotive aftermarket. For more information about the APCO Holdings family of brands, please visit apcoholdings.com.

About Allied Solutions, LLC
Allied Solutions is one of the largest providers of insurance, lending, and marketing products to financial institutions in the US. Allied Solutions uses technology based products and services customized to meet the needs of 4,000 clients along with a portfolio of innovative products and services from a wide variety of providers. Allied Solutions maintains over 15 regional offices and service centers around the country and is a subsidiary of Securian Financial Group, Inc. Visit www.alliedsolutions.net to learn more.

Media Contacts:
Sarah Baker
Communication Manager
Tel: 404-769-7708
Email: sbaker@apcoholdings.com
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