Many shops use Shopmonkey for easy transactions between customers, and extended warranty contract claims are no different. Use Shopmonkey to take notes, perform inspections, prepare estimates, and invoice 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.
We know that as a part of working with extended warranty contract providers setting up shop information, rates, and the book used for quote times and pricing need to be communicated before performing any work. 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 a Genius subscriber you can let them know Motor is your book for quoted times and parts pricing.
Preparing the estimate
A recommendation on how to start an estimate for extended warranty contract work is a diagnosis and verification of coverage. You can add an hour of labor (or however long you think the process will take) but you’ll take this time for two important steps. First, you’ll diagnose the problem the customer is experiencing with an inspection, and second, you will verify with the extended warranty contract provider whether the issue will be covered by them. By taking this step you’ll never be put into a bad situation if the customer is confused about their coverage.
During the diagnosis, you can start creating the service needed for repair and include labor times and part information. If you’re a Genius subscriber, you can use Motor to pull in labor times and parts to quickly populate the service.
Tips: Before calling the extended warranty contract provider, note all information they will need to process the claim, note all inspections and diagnostics, and be sure to have each part needed listed in detail with the OEM part number on the invoice, as well as the labor time required, as the extended warranty contract provider will require this information. This can be added in the Recommendations notes section, or as an Internal Note.
Once the repair is approved you are all set to perform the repair.
Invoice and Payment
When the repair is invoiced and ready to complete you may need to collect a deductible from the customer and submit the invoice to the extended warranty contract provider.
First, you can take partial payment for the service for the amount of the deductible from the customer. A quick way to do this is to use Shopmonkey payments and request the specific amount from the customer.
If the extended warranty contract provider does require the deductible recorded on the invoice before processing it you’ll have that step already recorded. If not, you can request payment from the customer after this invoice is processed by the provider.
Now that the invoice is ready you can send it over to the extended warranty contract provider. You may be asked to send the invoice digitally. Just download a pdf copy of the invoice and send it to them. You can do this by clicking on the print button on the invoice and downloading the pdf from your browser. If the provider requires a faxed copy of the invoice you can print a physical copy from the print button and fax it with any signatures required.
Once the provider receives the invoice you will usually receive payment based on your predetermined terms. It might come in the form of a check in the mail after a couple of weeks, or they might send over a digital form of payment sooner.
Above and Beyond
Some extended warranty contract repairs will naturally make other repairs easier. Since the provider/company will already be paying for the labor for a repair, you can use this opportunity to suggest other repairs that the customer might need or that may overlap with the work you’re already doing. For example, fixing an engine issue might require removing hoses and seals to access the area under an extended warranty contract, by offering replacement hoses and seals 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.
Tip: When the extended warranty contract will cover the labor for a repair look for any new parts or repairs that could be added to the work order that the customer should get done while the other work is being performed.
While taking the steps mentioned in the first section about preparing the estimate for extended warranty contract service, after the work has been pre-approved by the provider you can add an additional service for all of the parts that won’t be covered under extended warranty contract. Adding an additional service will keep all of the repairs tracked on one work order while the jobs are being performed.
Invoicing and Payment
At the time of invoicing only the pre-approved service and invoice number should be sent to the extended warranty contract provider. To do this, duplicate the invoice and remove all services the customer is responsible for. Then (if required) you can use Shopmonkey payments to request the amount of the deductible and after receiving it send the extended warranty contract invoice using the steps in the first section.
In the duplicated invoice remove all extended warranty contract services and notes. Then invoice the customer for the parts not covered. 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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