News and media 3 warranty claim mistakes to avoid

Navigating Increased Warranty Coverage and Avoiding Common Mistakes in Warranty Claims Filing.

Traditionally, the standard warranty period was around 3 years or 36,000 miles. However, many manufacturers now provide warranties that extend up to 5 years or more, offering customers greater peace of mind.

With more vehicles covered under warranty for longer periods, the efficient management of warranty claims becomes paramount. Dealerships must adapt their processes to ensure claims are filed accurately, promptly, and in compliance with manufacturer guidelines.

Dealers stand to gain if they streamline their processes and avoid some basic mistakes in the service process which in turn will lower the cost of claims processing and increase the approval rates.

Mistake #1: Neglecting the Receivable Schedule

One common mistake in warranty claims filing is overlooking the warranty receivable schedule amidst the demands of daily operations. This can result in missed opportunities to claim reimbursements for eligible repairs.

To avoid this mistake, regularly check the warranty receivable schedule to identify any outstanding repair orders.

Mistake #2: Inadequate Technician Notes

Comprehensive technician notes are crucial for successful warranty claims. With longer warranty coverage, the need for detailed technician notes becomes even more critical.

By ensuring comprehensive technician notes, you strengthen your claim's validity and improve your chances of successful reimbursement.

Mistake #3: Failure to Obtain Prior Authorization

Failing to obtain prior authorization before proceeding with repairs can lead to claim denials and unnecessary complications.

To mitigate this mistake, ensure that your technicians are well-trained and up-to-date on manufacturer procedures.

As manufacturers extend standard warranty coverage for new vehicles, dealerships must adapt their warranty claims process to optimize revenue potential and customer satisfaction. Implementing streamlined processes, emphasizing attention to detail, and adhering to manufacturer guidelines will enable dealerships to maximize their warranty claims filing, enhance customer trust, and maintain positive relationships with manufacturers.

To Read the full Fixed Ops Magazine Article, Click Here.

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