Let's Stop Compromising with Extended Warranty Companies

[Joe Marconi]

Premium Member Content 

This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

[SMMotors]

I don't cave. I've told the warranty companies that I'll let the customer know that you've refused to honor the warranty.

 

I do have a work around that hasn't failed yet. When the warranty companies want to send us parts, I tell them that my insurance won't cover any parts that aren't sold on the work order. Doesn't matter if they are OES or AM. I politely ask if the warranty company if they would like to underwrite my insurance policy and cover the million dollar liability I have.

 

This is a huge thing that I don't think ESO's take seriously. If the part you install isn't supplied and sold by you, you will not be covered if there is any problems ( at least on my policy and other shops that I've worked at, I've seen it in the contract as well as asked the adjuster). You all have read the posts " times were slow so I went ahead and took the job and used the customer supplied brake pads cause some money is better than no money". That never ends well.

 

 

I encourage everyone to review and ask your adjuster about it. I was told by 2 different companies that if I put customer supplied parts on, there is an accident, I have no protection. No insurance coverage, no company lawyer, no financial protection.

 

With extended warranty companies, I make my money. I know how to play their game and charge for stuff that I wouldn't charge for with regular customers ( ie hose clamps, total freon in the system not what was evaced minus what I put in, list price on coolant and filters, book time for LOFs, full diag time at a higher per hour charge). I make good money on the extended warranties most of the time. I don't let them dictate how to perform my job, what I make, or what parts I use.

 

Good on you Joe!

[Marksas]

We don't negotiate with the A/M Warranty companies and we let the customer know up front. We inform the customer that many times the warranty company does not pay for all the procedures required for us to properly repair their vehicle and provide them with our warranty. We will be happy to submit the claim and speak to the adjuster but we don't argue with them. We will let you know what your total out of pocket fees are before we do the job and we will need their authorization once we know what the warranty company is paying for.

We also increase our labor rate by $15.50 per hour just because we have to deal with them. I don't think I have had a company ask to send us parts but I am going to check with my service writers. I like the idea of "our insurance policy will not cover parts not sold by us." I will also check with my agent on this.