Partnership combines auto insurance, used car warranty products

Online insurance comparison platform HelloSafe has announced a strategic partnership with GuardTree Inc., which calls itself Canada’s first monthly subscription-based used car warranty product.

The partnership allows Ontario drivers to compare a wide range of auto insurance guarantee options through HelloSafe’s online platform.

“The collaboration between HelloSafe and GuardTree marks a significant milestone in the automotive protection industry, particularly in Ontario, where drivers often face challenges in finding comprehensive and affordable products,” the comparison website said in a press release last week.

“By combining their respective expertise, HelloSafe and GuardTree will provide Ontario drivers with a streamlined and transparent process to secure protection tailored to their specific needs.”

HelloSafe spokesperson Alexandre Desoutter says the partnership will help simplify the automotive ownership experience.

Vehicle warranties are often sold at auto dealerships during the sales purchase transaction. In GuardTree’s case, the extended car warranty subscription plans cover most mechanical and electrical repairs, the company said on its website. The product also covers roadside assistance, car rental and trip interruption (lodging) costs.

GuardTree was launched in Ontario in 2021 to allow drivers to instantly purchase, activate and manage extended warranties online when the factory warranty has expired. Part of every member’s monthly subscription fee goes directly towards offsetting greenhouse gas emissions caused by driving, GuardTree says in the release.

The idea of embedded insurance or bundling insurance has gained steam in recent years. Examples include providing a customer shopping for a mortgage with a home insurance offer, or bundling travel insurance within an airline’s flight offer.

Industry professionals have highlighted the benefits of embedding insurance during recent conferences. At Insurance Canada’s 2024 Technology Forum in late February, chief operating officer of digital MGA Foxquilt said the sky’s the limit with embedded insurance.

For business partners, the embedded policy helps mitigate future risk by making it explicit to consumers that they’ve either added or declined the add-on coverage. Foxquilt COO Renée Walkom said “it also significantly improves their flow, so [less] drop-off when people don’t have to leave the ecosystem to go separately get insurance.”

At KPMG’s 2023 Insurance Conference in November, speakers said embedded insurance not only enhances the customer experience but also provides greater access to data for insurers.

Feature image by iStock.com/Ihor Reshetniak