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As the automotive industry grapples with unprecedented change, the latest AM Supplier Insight heard from Car Care Plan sales director Simon Cook, who says extended warranties and insurance add-ons are more important than ever for both dealers and consumers.

Speaking as the company nears its 50th anniversary, Cook highlighted how rising consumer uncertainty, geopolitical tension, and tightening regulations have created exceptional market conditions.

In this environment, dealers must increasingly focus on customer lifetime value - and that includes offering effective risk protection products.

“People are holding onto vehicles for longer” said Cook. “That increases the need to protect against costly repairs. Customers want reassurance.”

While sales of new vehicle warranties remain limited due to generous OEM cover, particularly from Chinese entrants, Cook says used car warranties offer significant revenue potential - especially when tailored to ownership cycles.

Add-on products like alloy wheel, tyre, and cosmetic insurance also continue to contribute significantly to dealer profitability.

With finance and insurance (F&I) accounting for 35% of typical dealer profits, Cook insists they provide enduring value.

Sales penetration benchmarks matter too: 10–25% is average, 25–35% is strong, and over 35% is exceptional. “Success comes from early, clear communication - ideally from the customer’s online research phase,” he added.

Car Care Plan supports dealers with dedicated field teams, bespoke training, and tools to help sales staff meet regulatory expectations.

On electric vehicles (EV), Cook expects warranty products will evolve as reliability data matures.

Even so, despite conflicting reports, early signs suggest ground-up EVs outperform adapted models with battery certification credentials set to becoming increasingly important in supporting consumer confidence.

As connected and autonomous vehicle tech advances, Cook forecasts the emergence of “Brave New World” warranty services - like real-time diagnostics and proactive claim support - becoming a reality.

“With 50 years behind us, we’re planning for another 50,” he insists.