The largest German car insurer HUK-Coburg is expanding its car-related services. The group takes over 25.1 percent of the workshop chain Pitstop with 300 companies.
The insurer already has partner workshops that offer its customers services that go beyond the repair of insurance damage. This brings the HUK service network to a total of 450 workshops in more than 200 cities.
Pitstop was founded in 1970. The company operates workshops for all makes of car throughout Germany and has around 1,300 employees. Stefan Kulas will remain the managing majority shareholder of Pitstop after the deal.
The company did not name the purchase price. The antitrust authorities still have to approve the takeover. The insurer is thus further positioning itself as a service provider for everything to do with cars and is securing numerous contacts with potential new customers in motor vehicle insurance. “Pitstop already has a large customer base that we hope to be able to increase significantly,” said HUK boss Klaus-Jürgen Heitmann of the SZ.
The HUK-Coburg brand will be clearly visible on the offer. The first contact and thus the booking should mainly be made via the HUK car service platform, says Heitmann. “We guarantee that the affiliated workshops ensure our quality standards.”
The Pitstop branches will keep their brand, but the HUK-Coburg brand will also be clearly visible on the workshops.
HUK is the market leader with 13.4 million insured vehicles and is far ahead of number two, Allianz, which is stagnating at 8.7 million vehicles.
But like many other insurers, the company has a problem: When it comes to new cars, the manufacturers who have their own insurers or work with a few companies like Ergo and Allianz are digging the water out. They offer the policies as part of the new car sale. In any case, the manufacturers also want to ensure that repairs and service remain in their authorized workshops.
Used cars, which are driven by more cost-conscious customers, are actually the core business of HUK-Coburg. But here the influence of comparison portals such as Check24 is growing. In addition, the Coburgers have to fear that Internet companies such as Amazon and Google will enter their business area.
It is important to retain customers and offer as many car-related services as possible. It shouldn’t be worthwhile for drivers to switch insurers for a 30 euro cheaper policy, according to the calculations of the market leader’s marketing managers. Because that would mean she and he would lose pleasant services related to the vehicle.
“The planned participation in Pitstop is a further step in the expansion of our HUK service offering for everything to do with mobility,” explained Heitmann. “This brings us even closer to our customers in the growing mobility market.”
HUK-Coburg has a network of 1,600 partner workshops that specialize in repairing accident damage. Customers who choose a contract with a workshop connection have their vehicle repaired by a company from the network and in return save around 20 percent on the premium for the comprehensive insurance. The insurer saves because he has agreed particularly favorable hourly rates with the workshop in return for good utilization.
Of these 1,600, 150 also offer car services. Customers can use the HUK there to change tires and oil and have repairs carried out that have nothing to do with insurance damage. They are now joined by the 300 pitstop workshops. Pitstop is not geared towards repairing accident damage, but towards service.
The workshop network is the most important but not the only service provided by the Coburg company. The insurer is already a used car dealer through HUK-Autowelt in Düsseldorf, and he also buys vehicles from his customers. Together with the insurers LVM and HDI, HUK founded the Onpier platform, which is intended to offer additional vehicle-related services.
There will no longer be price advantages for HUK policyholders who have their cars serviced or repaired in the 450 workshops. This was previously the case with the 150 partner companies. In this respect, the position of the customers deteriorates, there are fewer discounts. However, the company is already planning marketing campaigns and vouchers for its own insured.
The HUK brand is present in the everyday life of drivers via the car services, and the insurer creates valuable points of contact with potential new customers.
The insurer has revised the website of HUK-Autoservice and now offers various services related to the topics of tyres, main inspection and emissions test, oil changes, air conditioning service, brakes, exhaust, chassis, battery and inspection. The services can be booked via the website, and appointments are also available at short notice.
HUK-Coburg does not want to alienate its previous partners with the pit stop deal. “The 150 partner workshops, which also offer car service, remain an integral part of the HUK workshop network,” Heitmann clarified.
There is “a clear distinction to be made between the controlled repair of accident damage on the one hand and maintenance and servicing on the other hand,” said Thomas Geck, Head of Claims Process Management at HUK-Coburg. Apparently there should be no turf wars among the companies.