START-UP company Motor Assured Limited is seeking to transform the local market with its groundbreaking motor vehicle extended warranty service.

An extended warranty, also known as a vehicle service contract, is an additional protection plan which motorists can buy to help them pay for certain repair costs. It usually begins when the manufacturer’s warranty expires, though the two may also overlap.

The service, said to be a “first of its kind in the Caribbean”, carries a range of options carefully designed for private, passenger, commercial, and other classes of vehicle users.

“We provide extended warranty that covers the inner workings of all motor vehicles — not the wear and tear aspect but those concerning major components such as the engine, transmission, braking, steering and cooling systems etc. Once the subscription of a customer is up to date we will provide the funds for repair of their vehicle in the wake of damages. We provide 100 per cent coverage on parts and labour,” Xavier Allen, CEO of Motor Assured, told the Jamaica Observer.

Moving to capitalise on what he believes to be a larger pool of used vehicles operating locally and having very little to no warranty protection, Allen said the business, on realising the gap, is now moving to take advantage of the immense opportunities for growth in this new and innovative space, providing motorists with much-needed funds to service vehicle repairs.

“If any of the critical parts go bad, customers no longer need to worry about finding exorbitant sums which can range from $250,000 to $2 million for repair costs. With a subscription we will take care of things, as in establishing our business, this was the type of value we wanted to deliver to the local market,” he stated, noting that unlike insurance there will be no increases in warranty when claims are made for repairs.

The digital business,which officially commenced operations late last year, offers customers the option to make payments monthly, quarterly or annually, with coverage costs ranging from $3500-$6500 per month based on the class of vehicle. As basic requirements for subscription, motorists are to ensure that their vehicles have both an up to date road licence and fitness.

“At entry level some of the most popular vehicles driven around, such as the Honda Fit and Toyota Axios…coverage for these could run at about $40,000 a year or under, however if something should go wrong on these cars concerning the engine or transmission these owners will have to be looking at costs upward of $200,000, hence one can clearly see the value in subscribing.

“Unlike insurance with which customers would need to have an almost near-death experience, with our service, in the event of something going wrong all it requires is just an uploaded quote from your mechanic and we’ll settle the bill within three to five business days to have the repairs completed and your vehicle back on the road,” Allen said to Sunday Finance.

Outside of its digital platforms which comprise an app and website, customers also have the option to access over-the-counter services through which they can physically get quotations or sign up for Motor Assured’s extended warranty at any of the nine branches of Covenant Insurance Brokers, with which it has an ongoing partnership.

Largely funded from private equity the company, which has to date seen capital investments of over US$50,000, is now positioning to carve out a greater presence locally and in the region.

“Since launching, our subscriptions continue to grow and we are now over 500 active clients. Within the short term our aim is to ,however, get at least one per cent of the active motor vehicles in Jamaica — which is roughly about 400,000 cars or 4000 plus subscribers — and we are trying to achieve this by the end of this calendar year,” the CEO further told Sunday Finance.

Boasting a safe, secure and fully encrypted software plus a strong and competent team of managers and directors, Allen said the business, in navigating a niche market, is now, after a two-year incubation period, poised and ready for the future.

“Our next step is to take elements of the model which we want to replicate, across the English- and Spanish-speaking Caribbean as we try to also add value in those spaces. We are currently eyeing some countries similar to Jamaica, those currently without a vibrant extended warranty market but having strong potential for growth,” Allen said of the outlook.