by Robert Jason Maxwell, Claims Manager
It can be stressful when your vehicle has to go into the repair shop. We all feel that added anxiety of the unknown, and the possible looming cost of auto repairs. That’s why it’s such a great idea to protect your vehicle, and your finances, by purchasing a vehicle service contract.
For those smart drivers who have a service contract through us, I’d like to give you a better idea of how the claim process works, and what actually goes on when you file a repair claim. I’d also like to stress how important it is to read your service contract, and fully understand the coverage it provides you.
The most important thing you can do to make this process smoother is to always read your service contract before you file a claim. You should be familiar with the phone number you need to call, the actual coverage that you have selected, and the rental and towing policy. Many contracts have different terms and stipulations. Do your homework and read your service contract.
One of the most common things we hear from customers when claims are denied is, “you just don’t want to cover anything.” This could not be further from the truth. We love covered repairs! It makes our jobs easier and things go smoothly. We don’t wake up in the morning and want to fight with repair shops or customers. I can promise you, if the repair is listed for coverage on the service contract, and doesn’t meet any of the requirements on the exclusion list, we will cover that repair.
Our Claims Department paid out over 5 million dollars in claims in December 2019 alone. Most customers get frustrated when a repair isn’t covered, and that is understandable. However, it all goes back to reading the contract. Be prepared, and have a complete understanding of what your contract covers.
The other important thing you can do when you bring your car in for repairs is to ask the repair facility to call our Claims Department before they complete any repairs. The toll-free number to call is in bold type at the very bottom of every page of your service contract.
Next, check and see if your service contract requires you to pay a deductible. If it does, even with a covered repair, you will still have to pay the deductible amount to the repair facility once the repair is complete.
Always look at the “Additional Benefits” section of your service contract. Many contracts include reimbursement for car rentals or alternate forms of transportation when your vehicle is at the repair facility. Your contract may also provide Roadside Assistance services, including towing assistance, battery jump-start, flat-tire assistance, lockout assistance, and fuel, oil, fluid and water delivery.
There are basically two types of repair claims: simple and complex.
A simple repair would be one that doesn’t require an inspection of the vehicle from our inspection department. These can usually be approved with one or two phone calls from the repair facility. Examples include replacement of a water pump, fuel pump, wheel bearing, and other common parts that tend to fail often.
A complex repair would be when an engine, transmission, or differential component fails and has to be replaced. These claims tend to be more complex and time-consuming, because they can require the repair facility to remove parts to show the failure. Due to the extensive cost of these repairs, we have to inspect the failure before we approve the claim. Complex claims can take anywhere from 3-7 days to complete, and sometimes even longer if parts have to be shipped out to complete the repairs.
I hope this helps explain the claim process a little better, and gives you a good grasp on what goes on when you file an automotive claim. No one likes having to take their vehicle in for repairs, but together we can make it a less stressful and more tolerable experience.