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Best Practices: Use Shopmonkey for Extended Warranty Contract Claims
Best Practices: Use Shopmonkey for Extended Warranty Contract Claims

Take detailed notes, document inspections, create estimates, and send invoices from Shopmonkey for extended warranty contract work

Zack Buffum avatar
Written by Zack Buffum
Updated over a week ago

Use Shopmonkey to prepare estimates, take notes, perform inspections, and send invoices for extended warranty contract work performed. You can also combine extended warranty contract work with other services to benefit the customer and streamline the process.

Please Note: We know that shop information, rates, and the book used for quote times and pricing must be communicated before performing any work when working with extended warranty contract providers. This article assumes that you have all of that established and are preparing a claim for extended warranty contract work that has come into the shop.

If you are communicating with an extended warranty contract provider for the first time, you can find most of the necessary information in your Shopmonkey account including shop taxes and fees, labor rates, and (if you’re on a Genius Monkey plan) you can let them know that MOTOR is your book for quoted times and parts pricing.

Extended Warranty Contract Services

Prepare the Estimate

When preparing an estimate for extended warranty contract work, we recommended starting with a diagnosis and verification of coverage. You might choose to add an hour of labor (or however long you think the process will take) to complete these two important steps.

  1. Diagnose the problem the customer is experiencing with an inspection. During the diagnosis, you can start creating the service needed for repair and include labor times and part information. If you’re on a Genius Monkey plan, you can use MOTOR to pull in labor times and parts to quickly populate the service.

  2. Verify coverage of the service with the extended warranty contract provider. You can avoid tough situations with your customers by verifying coverage before you perform the service.

Extended Warranty Contract Diagnostic estimate created

Pro-Tip: Have all necessary information prepared before calling the extended warranty contract provider. We recommend adding this information as an Internal Note on the estimate. Service detail information may include:

  • All inspection and diagnostic details

  • Parts needed, including the OEM part number

  • Labor time required

Once the service is approved by the extended warranty contract provider and the customer, you are all set to perform the work.

Invoice & Payment

The extended warranty contract provider may require that you collect a deductible from the customer and submit the invoice for approval before processing. To do this, you can record a partial payment on the service from the customer for the amount of the deductible. We recommend using Shopmonkey Payments and requesting the specific deductible amount from the customer to do this. If the extended warranty contract provided does not require the deductible payment to be recorded on the invoice before processing, you can request payment from the customer after the invoice is processed by the provider.

Send the prepared invoice over to the extended warranty contract provider. If you are asked to send the invoice digitally, download a PDF copy of the invoice by selecting Print on the invoice and saving it as a PDF from your browser. If the provider requires a faxed copy of the invoice, select Print on the invoice and then print a physical copy.

print work order

Once the provider receives the invoice, you will usually receive payment based on your predetermined terms with the extended warranty contract provider (usually in the form of a mailed check or a digital form of payment).

Recommend Additional Repairs

Some extended warranty contract repairs will naturally make other repairs easier. Since the extended warranty contract provider will already be paying for the labor on a repair, you can use this opportunity to suggest other repairs that may overlap with the work you’re already doing. Look for any new parts or repairs that could be added to the work order.

For example, fixing an engine issue might require removing hoses and seals to access the area. By recommending replacement hoses and seals to the customer, you’ll add some additional revenue for your shop and help the customer with a replacement they may have needed anyway. Customers will appreciate the initiative your shop is taking to save them money and improve the life of their vehicle.

Add Additional Repairs to the Estimate

After you have prepared the estimate for the extended warranty contract service and the work has been pre-approved by the provider (steps above), you can now add additional services/parts that won’t be covered by the provider. This will keep all of the repairs tracked on one work order while the services are being performed in the shop.

Duplicate Invoice

At the time of invoicing, only the pre-approved service and invoice number should be sent to the extended warranty contract provider. If you’ve added additional services or repairs to the work order, you’ll need to make sure only the pre-approved services are on the invoice sent to the provider.

To do this, duplicate the invoice. On the original invoice (to be sent to the provider), remove all services the customer is financially responsible for. Request payment from the customer for the deductible (if applicable) and send the extended warranty contract invoice (steps above).

In the duplicated invoice (to be sent to the customer), remove all extended warranty contract services and notes. Invoice the customer for the services, parts, or repairs not covered by the extended warranty contract provider. Using Shopmonkey Payments will allow the customer to pay directly from the invoice.

Using Shopmonkey for extended warranty contract claims can record each transaction, streamline the process, and add value for your customers.

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