“In the warranty world, dealers often focus so much on the cost, not the value. Cost can sometimes be deceiving, until you really understand what you are getting and how you are being serviced…” Jeff Dobish, President -Truck Master Warranty
It wasn’t that long ago that Chinese drywall was going to change the face of home building, saving builders and home owners thousands on the cost of a new home or building. It was cheaper, easier to produce, and was perceived as a valuable resource to save some money. How did that work out?
The same scenario can be said of extended service contacts and how cost can be very deceiving in regards to the ultimate true value.
The first value proposition to explore is if the service contract is insured or not. This is one of the largest potential exposures to a dealership and their clients. There are two different warranties on the market today, one is a “limited warranty”, which ultimately places the responsibility on the selling dealer. An “insured warranty” is guaranteed by a third party insurance company that takes the risk of losses. It also has built in arbitration in the event of a dispute regarding a claim. An “insured warranty” provides the ultimate security and value compared to a “limited warranty”.
Taking a look at the amount of covered components, standard features and covered parts is where “limited warranties” build in the “gotcha” factor. The “gotcha” happens quite a bit when there is a limited number of covered parts, combined with no progressive damage coverage. So if a non-covered part fails and causes a covered part to fail, “gotcha”. It goes without saying that the more covered parts a warranty covers, more value lies with that warranty.
“Nobody knows better than Truck Master the deficiencies of using a third party administrator when it comes to processing claims”, states Joe Gelfo, Vice President of Specialty Administration Services. “When we first started in 2013, it was a hopeless felling not being fully engaged regarding claims, the claim process and eventually the speed in which gets trucks back on the road” says Gelfo.
“We started our own Administration company for one reason…and that was to deliver World Class customer claim service. We can now be fully hands on and have completed big dollar claims in less than 20 minutes. We are fully insured, licensed and registered in 48 states which is a statement no other heavy truck specific warranty provider can make…adding yet additional value when choosing a solid company”. “It’s our People, Our Process and our Product that truly sets us apart from the crowd”,