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There are so many warranty options for dealerships; it can be overwhelming. People like me are constantly coming into your store telling you how great their product is. How easy it is to use, blah blah blah.

The truth is, not all warranty companies are created equal. In this article, I’m going to outline some questions you should be asking when looking at warranty companies.

Tell me about the claims process? Is it easy for the shop or dealership to file a claim? What is the max labor rate that will be covered? Some of the cheaper products will only cover up to $75-$85 an hour. You go and find me a dealership that will fix a vehicle for $85 an hour. It doesn’t exist. The customer will be on the hook for the difference, and you probably get an angry phone call. The best warranty companies in the business have no max labor rate. I know companies that have paid clams at $200 an hour, which is Ludacris. However, they paid. You should be confident that whoever you are doing business with is going to actually pay claims.

How easy is the portal to use? Get a demo. Drive it for yourself. Most companies have an easy generation and remit process.

What do the brochures look like? Do they fit your dealers core values? Are they clean and informative?4

GET SOME QUOTES. Every company has a different niche. Some like high mileage highlines. Some like domestics. You know what you sell. Throw out a few VINs and have the warranty rep give you some costs. If they aren’t willing or able to do that on the spot, that’s a red flag.

Finally, look at the personal aspect of the warranty rep you are talking to. Do they know what they are talking about? Did they actually ever work in a dealership? Will they answer the phone when you call with a problem? Do they have the knowledge or authority to get something done? Different reps have different power. I know reps who couldn’t get a repair authorized if their life depended on it. They just don’t have that power. Others can get that headache taken care of with one 30 second phone call.

To sum everything up, there are a lot of factors when choosing a warranty company. Is the company itself good or bad? Is the person representing the company any good?

Hopefully you found this article somewhat informative. As always, if you have questions about your current product, or one of mine, please reach out.

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