There are 3 main terms that you will need to understand before hitting the phones.
The administrator is the company that authorizes and pays the repair facility for repair work to a covered vehicle. The administrator works with the repair facility (mechanic) to make sure the claim is handled properly.
SCC sells programs for different administrators (or insurance companies) that pay out the repair work.
A pre-existing condition is a mechanical or electrical problem that exists on a vehicle prior to its enrollment into coverage. There is NO warranty out there that will cover a pre-existing condition.
If a consumer says to you “My transmission just went out – does the warranty cover that?”
You would say “No warranty will cover a pre-existing condition – you’ll have to get that fixed. But what I’ll do now is quote your vehicle for any future repairs you might have.”
The underwriting period is the term required by an insurer (administrator) before the insured (car owner) can file a claim (get repair work done).
Underwriting periods vary for different types of plans, but every vehicle service contract we provide the underwriting period is 30 days and 1,000 miles. Meaning that if a buyer enrolls their vehicle today (and they have 90,000 miles on their odometer) then they can file a claim after 30 days and once their odometer reaches 91,000 miles.
The underwriting period satisfies the administrator (insurer) by signaling that a vehicle does NOT have a pre-existing condition.