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Is Pay-Per-Service Roadside Assistance The Right Choice For Your Auto Insurance Customers?

Auto insurance companies benefit from adding roadside assistance to their auto policies. Some benefit more when it comes to revenue based on the pricing model chosen with their roadside plan. There are three common types of pricing when it comes to roadside assistance: pay per service, pay per vehicle, hybrid pricing. Each pricing model can complement your auto policies, but which one is best?

Below are some thoughts on pay per service pricing for insurance companies offering roadside assistance.

Pay-per-service can work really well with personal, commercial, motorcycle, classic car, non-standard and other auto policies. Customers only pay for what they need. A service such as a tire change, jumpstart or tow are priced for costs associated with service, more or less including mileage to and sometimes from the customer’s breakdown location in addition to the service. This pricing model is easy to understand and quick to implement.

Using pay-per-service pricing has an added benefit when choosing National Automobile Club to provide service to your customers. On average, customers save up to 20% on service when using National Automobile Club largely in part to our large network of service providers. Our contracted service providers offer discounts on service, in exchange for a large volume of services. The cost savings are passed on to your customer to provide an affordable emergency roadside assistance solution. These savings can make a difference for personal, commercial motorcycle, classic car and non-standard auto insured.

However, there is a drawback to offering pay-per-service that can affect insurance companies who utilize reimbursement on policies or in general any policies without instructions, restrictions and limits. For example, if there are not restrictions in place, a customer can request a tow of any length and be charged hundreds or even thousands. National Automobile Club would recommend towing to the nearest place of repair to your insured to save on costs but ultimately the tow destination is up to the insured if there are no limits on policy.

Before choosing pay per service pricing speak with an expert. An Account Executive can answer your questions and raise questions you may not have thought to ask.

For example:

• Our insurance company offers both personal auto and commercial auto policies, which pricing should we choose pay-per-service over pay-per-vehicle?

• How does pay per vehicle and hybrid pricing compare to pay per service pricing?

• Do instructions, restrictions and limits make hybrid pricing the best option?

• Our insurance company offers non-standard auto, which pricing model should we use to maximize revenue?

• How much does a tow, lockout and other services cost?

For an in-depth discussion on which pricing strategy works best for your auto insurance company I recommend speaking with an expert from National Automobile Club. Additionally, ask about our limited time promotion, available to insurance companies.



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