With no doubt, The Warehouse is looking to fill in the blanks of the customer´s needs and they are doing pretty well.
Lets take a look of their new finantial product in their own words:
Financial product: Warehouse Money Car Insurance
The Warehouse has just gone live with Warehouse Money, a financial services operation it hopes will add to its profits in a meaningful way, and diversify its earnings.
It looks like a smart move, with The Warehouse and its other brands (Noel Leeming, Warehouse Stationery, and Torpedo7) all touching the lives of almost every New Zealander.
That’s a heck of a marketplace for selling house, contents and car insurance, no-fee and rewards credit cards, health insurance, travel insurance and pet insurance.
As New Zealanders already have a lot of all of those things (except pet insurance), the aim is to win market share off rivals.
AA Insurance has shown that is possible to carve out a large market share in certain lines, if your customers trust you enough, though retailer financial services sales don’t always go well (anybody remember Superbank?).
Later this year, The Warehouse is going further with the launch of Warehouse Mobile and start selling prepay phones and plans under its own name.
Warehouse Money’s car insurance comes in three versions designed for people with different budgets.
There’s third party damage only, which is really for folk on a very tight budget who own cars worth very little money, and who would struggle to pay the costs of crashing into someone else’s car. It is the bare minimum of insurance a responsible car owner can have. Having no insurance is disrespectful and means you aren’t paying your fair share of the Fire Service Levy. If you crash and need to be cut free from your car, it’ll be fire service people doing it.
Third party cover may not be the best option for people who owe money on their vehicle to a bank or finance company. A crash they cause could leave them with both a debt and a car they can’t afford to repair or replace.
The next policy up is third party, fire and theft, though it also includes damage cause to the policyholders’ car caused by uninsured drivers.
Finally there is the Warehouse Money’s Everyday Plus insurance, which covers everything the other two policies cover plus damage to the policyholder’s car caused by accidental damage.
Warehouse Money is a direct selling venture, where people will call up for quotes prompted by advertising in stores and online, so there’s no advice available. Policy buyers have to weigh up the options and make the choice themselves.
Verdict: Warehouse Money will take market share, but before switching to it make sure you know what you are buying. Compare not only the price of the Warehouse Money car insurance policies, but also compare the benefits they provide.
Policies are not all created equally. If you have a more expensive car, for example, the Everyday Plus cover’s limit on damage caused by uninsured drivers of $5000 may be too low for you, even though the policy covers cars worth up to $150,000. Always aim to make an informed choice, even if it means comparing boring policy wordings. Warehouse Money car insurance is underwritten by Vero, the giant insurer.
Visit the page: http://www.stuff.co.nz/business/73909943/financial-product-warehouse-money-car-insurance.