A nationwide warranty supplier helping consumers find the right programs for their vehicle protection needs.
How would you explain how a warranty works to someone?
Typically most consumers know that a warranty helps them in case they have some kind of mechanical or electrical breakdown.
The consumer has a breakdown.
The car gets towed to a mechanic.
The mechanic calls in the claim to the insurance company (administrator).
The administrator approves the claim, the car repair is fixed.
The consumer pays a small deductible ($100).
Well, that would be awesome if all warranties worked that way – but they don’t!
The consumer has a breakdown.
The car gets towed to a mechanic.
The mechanic calls in the claim to the insurance company (administrator).
This is where things change – the first thing the administrator will do is open an investigation on the claim being called in. They want to make sure the claim is valid because too many vehicle owners try to hide the fact that they have a pre-existing condition on their car.
The administrator will investigate the claim based on 3 things:
If anything seems suspect to the administrator, they can deny the claim. Every warranty (since it’s an insurance-backed product) is regulated by a State’s Department of Insurance (or State D.I.). Regulations for the Florida State Department of Insurance are different from the Georgia State Department of Insurance. Those regulations protect consumers, but also administrators.
If the administrator doesn’t find anything suspect – then they approve the claim, the car repair is fixed.
The consumer pays a small deductible ($100).
That’s why administrators offer CERTIFIED coverage the first time a vehicle owner gets quoted. Statistically, if a consumer enrolls on their first application, they are considered a low-risk vehicle which is exactly the kind of vehicles that administrators want to take on.
Administrators are not in the business of losing money, so they don’t offer consumers CERTIFIED plans the 2nd, 3rd, 4th time they get quoted – chances are that the vehicle owner is calling back and getting re-quoted because things are starting to break on their vehicle.
The administrator will offer 2nd, 3rd, 4th time applicants a STANDARD plan – but STANDARD plans – also known as LIMITED LIABILITY plans – don’t work the way consumers want them to.