Management Workshop, News ,

AUTOMOTIVE software developer, Auto Auto, has launched an unprecedented level of Return to Invoice (RTI) insurance coverage that will reimburse customers to the original vehicle invoice amount in the event of a total loss from theft or accident.

The new insurance policy can be applied to vehicles up to $200,000. Indicative premiums are about $1200 for an invoice of $50,000 and up to about $4000 for a car invoiced at $200,000.

Co-founder of Auto Auto, Stan Udler, told GoAutoNews Premium: “Basically if a customer buys a car for $100,000 and within five years time they have a write-off and the market value of the car is now $40,000, we will give them the other $60,000 to bring them back to the original invoice price.”

The new RTI program is being rolled out to dealerships around Australia and are already being sold by dealer groups in Victoria and NSW. The company expects that within a few months it will be selling 200 policies a month.

The RTI policies are underwritten by Sovereign Insurance. The company says that RTI rollout  will form part of an “innovative new range of co-developed products” due for release in 2024.

Co-founder of Auto Auto, Stan Udler

Mr Udler said: “We wanted to bring out a premium product. So there’s no questions asked. Your car gets depreciated from 100 grand down to 40 grand, you have a write off, Sovereign Insurance gives you a cheque for 60 grand to bring you back to $100,000. 

“RTI is not a new product; however, we told the underwriters we wanted to put in a premium product for customers that would streamline and simplify the process. It was also a key requirement that we cater to prestige vehicles,” Mr Udler said. 

The product was first tested by the Sydney-based McCarrolls Group.

Mr Udler said the system is automated. “We just send the buyers all the information – all the up-front prices, PDS and FAQ – and so on and people are buying it. 

“While the RTI policy appeals to a wide range of customers, we have seen that prestige vehicle and business owners are adopting it. This includes people who are buying it because they have had a bad experience previously and want to protect themselves this time around.” 

Damian Chadwick

Auto Auto specialises in automated marketing software that targets customers coming out of factory and statutory (used car) warranty and offers an online extension of coverage.

Communication is triggered by the warranty expiry date and pre-fills the required fields to allow a customer to purchase with minimal friction.

Damian Chadwick CEO of Sovereign Insurance and MD of AWN Insurance said: “I have great

respect for the digital solution that Stan and Ellis Lum Mow have created. They have addressed a complex compliance challenge with a digital process, and make it look easy; but it is not.

“The Deferred Sales Model (DSM) has had a dramatic impact on the industry and created a

commercial challenge that many have walked away from. Auto Auto share my vision for the

digital delivery of insurance products and the interest from our agents in the Auto Auto program

has been substantial.

By John Mellor

Manheim
Manheim
Gumtree
Manheim
AdTorque Edge
PitcherPartners
DealerCell
Gumtree
MotorOne
Schmick