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Posted

Yup, I learned this lesson in my first few dealings with extended warranty companies. My service advisor gets the estimate together, calls extended warranty to see what they will pay, then call the customer with the difference (if there is one). We might work with the customer a little bit, but it is dependent on a lot of factors.

Posted

We have many times been told by an insurance company that they will not pay our labor rates. Our rates reflect a professional shop with the proper tooling and knowledge to repair there customers vehicle. We do alot of work for bodyshops in our area and on more than one occasion have been in this situation....... My response? We are not a body shop and will not work for a bodyshop labor rate which is usually around the 50 dollar mark. there is a reason why they sublet out the harder electrical/electronic problems. We charge enough to keep our tooling and technicians capable of diagnosing/repairing these problems. The same applies to mechanical repairs paid for by insurance companies.

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Posted

Our experience with warranty companies has been much better than insurance. Insurance companies try to find used parts and bring them to your shop. Couple that with limiting your labor, and your margins are shot. Warranty companies seem to have a better grasp on the realities of our business. They squeeze a little bit but generally don't want to alienate you.

Posted

My experience with insurance companies and/or aftermarket extended warranties? Fine, I'll work for what you want me to, but your customer pays the rest. I do not lower my price, sorry. The customer is not happy with THEIR extended warranty and they learn from it.

 

I've dealt with too many aftermarket warranty companies that are just bullheaded enough that they do not care.

 

Travis

Posted

Years ago I had a tire shop bring one in that they forgot to put the oil pan drain plug back in. Of course, the engine was ruined. The extended warranty company not only told me what I was going to charge but they would supply the motor. I did manage to get the tire shop to cough up the difference and I told them I would rather use a motor of my choice, but they wanted the warranty company to pay for it.

Needless to say, the motor was trash. Then they wanted me to pull it back out for free.... ah, no...ain't happening.

 

they took it to another shop. enough said there.

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