ESP Processing Guide

This article is a general overview of how to process Extended Service Plans. It covers best practices and step by step handling of claims. For more details, watch our How To Get High RO Work from Extended Service Plans webinar on-demand.

Newer Vehicles

Active recalls, manufacturer's warranty coverage, and in some cases, TSB's, are covered by the OEM and should be repaired at the dealer. When a newer vehicle is visiting your shop:

Identify any active manufacturer warranties on the vehicle

• Factory bumper-to-bumper coverage
• Factory powertrain warranty
• Factory emissions warranty

Check for active TSB's

If the vehicle has a check engine light, check technical service bulletins as a first step to eliminate unnecessary tech time tracking down concerns.

Processing Extended Service Plans

STEPS

1

Diagnose the vehicle based on the customer's concern and determine the repairs/parts needed. Let your customer know up front that if the repair isn't covered by the warranty (i.e battery, oil change, etc), they will be responsible for payment of both the diagnosis and the repair.

2

Prepare a quote noting that some providers have specific guidelines to follow for labor time, rates, and parts pricing. As a general rule, labor time should be based on an industry standard guide, parts pricing should not be higher than be OEM MSRP, and the labor rate should be what you have listed in RepairPal.

3

Call in the the claim for authorization before performing any additional work. Be sure to identify yourself as a RepairPal certified shop. If the repair will require keeping the car overnight, you can also request rental car coverage.

4

Complete the repair after getting approval from your customer.  If any cost's aren't covered, be very clear with them and allow your customer to decide whether to get the work done. Once the work is complete, be thorough in explaining your work.

5

Follow the reimbursement instructions provided during the claim authorization phone call. Typically, the ESP provider uses a credit card for payment.

6

Release the vehicle to your customer after submitting your paperwork to the provider (even if you haven't received payment from them yet), and collect the deductible and payment for any authorized, additional repairs, or maintenance work.

Rental Cars

Many providers will cover a rental car when a customer's vehicle is inoperable or unsafe to drive and the repair requires it to be held overnight or longer for repair. Call in the request for a rental car on your customer's behalf at the same time as the claim authorization, once the diagnosis is complete and you'll know when you'll have the repair completed.

Once the rental has been authorized, you will be provided with the number of days and amount per day covered. The provider will either pay the rental company directly, or reimburse the customer (more common). In either case, the customer will be required to leave a deposit for the rental car, according to the rental car provider's policies

Taxes

Taxes are often based on where the customer purchased the policy. The ESP will provide you with the correct guidance so be sure to ask them when you call in the claim. Some things to note:

• In many cases, the Extended Service Provider will cover the taxes
• Sometimes, the Extended Service Provider may ask for you to collect the taxes from the customer
• In some cases, taxes may not apply to the repair because either:
  • The ESP is Tax Exempt (request a tax exemption certificate so you can attach it to the RO in your system for tax time) OR
  • The customer paid tax on the policy when it was purchased

Shop Supply Fees

ESPs do not cover shop supply fees, and we do not recommend you charge these fees to the customer (or overages). If your shop charges these type of fees, it will be an unexpected expense to your customer who purchased their policy with the expectation that the policy would cover everything if they needed a repair. You will retain more customers if you stay within ESP guidelines.

Extended Service Provider Websites

Extended Service Provider Phone Numbers