Warranty: Making Sense of Short-Term ESPs
Monthly billed plans make sense for certain products. Here's a look at whether short-term ESPs do, given the frugal consumer's spending habits in this down economy.
Monthly billed extended warranty plans provide a good fit for consumer electronics hardware items like cell phones, whose service fees to keep the phones active are billed monthly. That was the impetus behind Assurant Solutions' announcement that it would initiate a monthly billed protection program through wireless carriers for netbooks.
One of the hottest new consumer electronics categories, netbooks are sold at or near list price through standard retail channels, and at great discounts when their sale is attached to the purchase of a wireless carrier contract for broadband service. What made the move a logical one for Assurant, said Gary Bursevich, senior vice president, wireless sales, was Assurant's recent acquisition of Signal Holdings, a third-party administrator of handset protection programs.