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Vauxhall cover scheme targets buyer retention

Vauxhall, the UK's second largest carmaker, is launching a new vehicle repair insurance scheme in a bid to keep customers for longer and boost revenues from new car sales. ServiceLink allows drivers to insure vehicle's against unexpected damage between scheduled services.

The cover lasts for 12 months or 10,000 miles. It applies to cars younger than eight years old but excludes Fronteras, Montereys and light commercial vehicles.

Commenting on the launch of MasterCover ServiceLink, Nigel Griggs, Vauxhall aftersales marketing manager, said: “It offers real peace of mind to drivers of older cars with a safety net against big unexpected bills for major component failures. I am sure it will be a great success.”

The payment can only be taken out after a scheduled service and has a £2000 limit, but drivers can make any number of claims.

There are four levels of cover. For £39 motorists get insurance for engine and gearbox components while £59 adds the cooling system and £79 covers rotating electronics such as the starter motor and alternator. At the top end of the scale is the £129 payment, which will cover every OE mechanical and electrical component apart from wear and tear items such as brake pads.

So far, about 300 of Vauxhall's 490 franchised dealers have been trained in the scheme with another 120 expected to go live by Christmas.

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