Extended warranties were once the province of retailers, but phone and cable companies have decided to dive into the lucrative business. Verizon's new "Expert Care" suite of service plans gets the once over by Warranty Week.
The piece reveals that Verizon is working with Asurion's Warranty Corporation of America as administrator and AIG Warranty Services as underwriter. (Hmm, a government backed warranty?). Verizon's Expert Care "borrows heavily" from the way service plans are sold in the mobile handset and home warranty industries, with monthly billing for the warranty and a $75 fee per warranty claim.
Verizon says the Expert Care offering is a "logical outgrowth" of the company's experience selling mobile phone extended warranties with the help of Asurion. A Verizon spokesperson said the company has carefully surveyed the market and is "confident" that Verizon has both the ability and the credibility to sell service plans in competition with retailers.
Trust is a major factor in Verizon's reasoning. When you go into a Big Box store, retailers push so hard to sell an extended warranty that people get put off at the hard sell. And Verizon can argue, with justification, that it will still be in business five years down the road. Retailers, on the other hand, may have some issues.
- If you want to geek out on Verizon's warranty service offering, the Warranty Week piece is a must read. Article.
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