iA American Insights

With all the electric and hybrid vehicle options out there today, the auto industry has entered a new era of vehicles that calls for a new era of coverage—and we’ve developed our new VSC program as a product of the future. No matter the type of vehicle—whether EV, ICE, hybrid, fuel cell or hydrogen—it’s most likely covered under iA American’s new VSC program (launched in April 2023). As a company that’s been offering coverage on EVs since 2017, in combination with our legacy of ICE vehicle coverage, we were able to capitalize on much of our data and experience to craft a product that truly protects what matters most to consumers.

This program is ideal for dealers looking to provide the best options to their customers for all the latest technology today and in the future, and for agents looking to provide the best possible programs to their dealers. From more coverage options than ever before, to extended vehicle age and mileage eligibilities, this program offers benefits and coverages that few, if any, in our industry can compete with. 

Below, we’ve compiled a list of the features and benefits of our new VSC program and what sets it apart from the rest.

1. Covers All the Bases, in One Compressed Package

We’ve really outdone ourselves this time! With the Ultra and Select VSC Program, there’s something for everyone—every dealer and every customer—no matter the OEM, vehicle type, market, or new or used status. There are so many benefits and provisions accounted for that it will be hard to say “no.” For example, vehicles up to five years old typically qualify for new vehicle coverage with the Ultra program, and there are options for used vehicles with the Select program, up to 20 years old and with up to 200,000 miles.

We’ve also developed a Dealer CPO program that gives dealers an edge over the competition and allows them to dealer-certify any qualifying used vehicle on their lot with similar terms and benefits as the OEM.

2. All-Encompassing Coverage, No Matter the Type of Vehicle

As mentioned above, this VSC program covers all vehicle types, with minimal limitations. We don’t know what the future will bring, but we’ve built a product that we believe will be timeless.

This means that customers who purchase an EV, those who purchase an ICE vehicle, and those who purchase a hybrid today, tomorrow, a year from now, or even five years from now, will all be covered under this program, no matter which of our new VSC products they choose (Ultra, Ultra+, Select, or Select+). It also means dealerships won’t have to install a new program in a few years just to ensure coverage for another type of drivetrain. This is one of the key features in our attempt to “future-proof” our VSC program.

3. Battery Coverage Options

With our Ultra+ program, we decided to take a risk and offer coverage for certain battery types, which can often cost thousands of dollars. Most OEMs only cover batteries up to 80,000-100,000 miles, but our Ultra+ VSC program provides battery coverage up to 125,000 miles (term dependent).

On top of that, the way this program was created allows us to be flexible with future battery options. Not all EVs and batteries are or will be the same, but we provide a variety of coverage options to account for these differences.

4. Ease of Installation

We understand that installing a new product can present challenges for dealers, so we’ve made the process as easy as possible. Not only has the new program been approved in all 50 states and by all major lenders, but it’s also integrated with 59 different menu systems (see the full list here).

For those already using our proprietary admin platform, they’ll be glad to know the products are already loaded in the system, which eliminates part of the process when switching to a new VSC program.

5. Right-Sized Pricing

With 18 different classes, dealers are able to offer better pricing for everyone. This allows us to deliver the lowest, most accurate price for all VINs, without customers having to overpay and compensate for the repairs of more expensive vehicles.

6. So Many Terms!

We have over 100 terms ready to go, right off the shelf! Just as we organized coverage and pricing for a multitude of classes, we also offer myriad term and deductible options, giving both the dealer and the consumer more options than the competition.

7. Reinsurance and FIP

Dealers who have chosen the reinsurance model can rest assured that all products within the program will fit into their existing structure. And if they’re taking advantage of our Flexible Investment Program (FIP), the same FIP rules apply as they did for legacy products. The Ultra Dealer CPO program also allows the dealer to send the premium dollars to their reinsurance company instead of the OEM. Every time they choose the Dealer CPO program, they end up with more money in their pocket.

8. Industry-Expected Benefits Now Offered or Included

We’ve taken into consideration all legacy coverage options to develop the most comprehensive coverage. Benefits similar to “covered part due to loss,” “commercial use,” and even “non-covered part due to loss” have been reimagined with the intent of including them or offering them for only a small fee.

9. Introducing Rideshare Benefits

In addition to standard rental benefits, we are now offering rideshare reimbursement to meet the increased demand for this type of transportation. With rideshares now an everyday part of our lives, it only makes sense.

Contract holders are no longer beholden to the rental car process if they don’t want to be—having to find transportation to pick up the rental car, filling it up with gas, dropping it back off, and all the additional headaches that can go along with that. They’re now able to simply hop in a rideshare and get where they need to go.

10. Key Coverage

We’re excited to include key coverage in our new VSC program. This feature functions the same as any other VSC provision: if it’s a mechanical failure, the key is repaired or replaced. (Note: The “key” here is that it’s mechanical failure only, so it’s important to ensure F&I teams understand that this is not like a typical ancillary key replacement coverage that also covers lost keys. This is only for mechanical failure of the key, but it’s now embedded in the VSC program.

11. Gray Market Coverage

Another feature that’s now included is coverage for gray market vehicles, something most providers won’t even think about. But for those dealers looking for a program to cover the gray market vehicles they sell, we’re the new go-to. 

This is just an overview of all the benefits that make our new VSC program the best of the best. For questions and more detailed information, please reach out to your iA American representative.