Submitting a claim on an extended warranty on your car is no picnic…
Vehicle owners rarely understand the ins and outs of the claims process. They purchase the coverage, pay their premiums, and cross their fingers…
Until they actually need to make a claim.
Suddenly, they’re floundering…
The paperwork! Coordinating with the repair facility! Following up to see what’s going on!
But here’s the thing…
Preparing for a claim before it happens makes everything a whole lot easier. Following the prescribed process cuts down on time and frustration and greatly increases the likelihood that repairs will be approved.
Here’s What You Should Know:
- How Extended Warranty Claims Work
- The Step-By-Step Claims Process
- The Top Reasons For Claim Denials
- Avoiding Claim Rejections
How Extended Warranty Claims Work
A claim on an extended car warranty is a formal request to have repairs covered by the warranty provider.
When a covered part fails, the warranty should take care of it. But there’s a certain process involved. Purchasing subscription cover for extended car warranties is becoming more popular as drivers try to protect themselves from unexpected repair costs. Purchasing proper cover ensures that your car is protected after the manufacturer’s warranty has expired.
Simple enough, right?
Well, different providers work differently. Some pay the repair facility directly. Some require the policyholder to pay for the repairs out of pocket and then get reimbursed.
Knowing exactly what kind of cover is in place before you need to use it is essential.
The Step-By-Step Claims Process
Submitting a claim doesn’t have to be a headache. Here’s how the process works…
Step 1: Detect the Problem
Once something isn’t working right with the vehicle, stop driving it. Continuing to drive it will just make the problem worse.
And here’s the kicker…
The additional damage from not stopping could be denied by the warranty provider.
Step 2: Contact The Warranty Provider
Call the warranty company before doing anything else. They will tell you what to do next.
Most providers have a claims line that can be reached 24 hours a day, 7 days a week.
Step 3: Take The Vehicle To An Approved Facility
A lot of warranty providers have a network of repair facilities they have vetted. Failing to use one of those shops can lead to a denial.
Always call the warranty provider and confirm which repair facilities are approved.
Step 4: Get Authorisation
The shop will diagnose the problem and contact the warranty provider. According to Motor1, an extended warranty provider should take anywhere from 3 to 5 days to authorize the repairs after a claim has been filed.
Once approved, the repairs can be started.
Step 5: Pay The Deductible
Extended car warranty plans usually come with a deductible. The deductible is the amount paid out of pocket before the policy takes over.
Deductibles on extended warranties usually range from $0 to $250.
Step 6: Collect The Vehicle
When the repairs are complete, pick up the vehicle. Be sure to keep all the documentation. Repair orders, invoices, receipts.
You never know when you might need them in the future.
The Top Reasons For Claim Denials
Not all claims get approved. Understanding the most common reasons for failure helps to avoid them.
According to a MarketWatch survey, 18% of respondents who own a car warranty said that their provider failed to cover the damaged part. That’s nearly 1 in 5 claims that come up against coverage issues.
Here are the most common reasons for claim denials:
- The repair isn’t covered. Warranties have lists of covered components. If the broken part isn’t on that list, the claim will be rejected. Reading the contract carefully before signing up is always a good idea.
- Missing maintenance records. Warranty providers need to see proof the vehicle has been properly maintained. No proof? No approval. Maintain digital copies of oil changes, tire rotations, and all scheduled services.
- Pre-existing conditions. If a problem existed prior to the start of the warranty, it will not be covered. Some providers have a waiting period, usually 30 days, before the start of coverage.
- Unauthorised modifications. Aftermarket parts and performance upgrades can void coverage. This can include lifted suspensions, oversized wheels, and upgraded exhaust systems.
- Repair by an unauthorised facility. Taking the vehicle to a repair shop outside of the provider’s network is usually grounds for a claim denial. Always double check authorised facilities before having any work done.
- Neglect or abuse. Misuse such as racing, off-roading in a vehicle not designed for it, or overloading a vehicle beyond manufacturer recommendations can all void a warranty.
Avoiding Claim Rejections
Nobody likes dealing with a denied claim. Following these steps can greatly improve the odds of approval…
- Read the contract carefully. Before signing on the dotted line, make sure you are clear on exactly what is and isn’t covered. Look for exclusions, waiting periods, and deductible amounts.
- Keep excellent maintenance records. Document everything. Oil changes, brake checks, fluid top-offs, everything. Store digital copies in the cloud so you have backups.
- Use authorised repair facilities. Even if there’s a trusted mechanic around the corner, use repair facilities approved by the warranty provider.
- Report issues promptly. Don’t wait until the problem gets worse. As soon as something doesn’t feel right, contact the warranty company and get the vehicle inspected.
- Avoid modifications. As much fun as it might be to put a cool exhaust system on your vehicle, modifications make headaches during the claims process.
What To Do If A Claim Gets Denied
If you receive a denial letter from the warranty company, don’t freak out.
The first step is to request a written explanation from the company. Knowing exactly why the claim was denied makes it easier to appeal.
Gather all relevant documentation. Maintenance records, repair invoices, any correspondence with the warranty company.
If you still think the denial was unjustified, file a formal appeal. Present the supporting documentation clearly and reference the contract terms which back up the claim.
Still coming up empty handed? Contacting consumer protection agencies or getting legal advice may be warranted. Some warranty disputes fall under the Magnuson-Moss Warranty Act.
Pulling It All Together
The claims process for extended car warranties comes down to one thing.
Preparation.
Knowing what is covered, what the process involves, and keeping proper records makes the claims process easy. Saves:
- Time – no unnecessary back and forth with the provider
- Money – repairs that should be covered actually get paid
- Stress – no surprises
The claims process itself follows a logical progression. Detect the problem, contact the warranty provider, use an approved repair facility, get authorisation, pay the deductible, and collect the vehicle.
The most common claim denials are the result of missing documentation, uncovered components, or unauthorised repairs. Steering clear of those three things goes a long way in improving approval odds.
Extended car warranty subscriptions are an excellent way to protect yourself and your wallet. Just make sure to read the fine print, maintain the vehicle as recommended, and follow the process precisely.
That’s all there is to it.