Purchasing a service contract (extended warranty) for your motorized or towable vehicle might seem hard to justify — but the right service contract will mitigate future problems, save you money in the long run and get you on the road faster. It’s critical, however, to look at your options — not all service contract/extended warranty companies are the same.

What should you look for? Here are a few differentiators between extended warranty providers and a few industry “best practices” for getting a claim approved.

Top 3 Extended Warranty Differentiators

1) Claims Department Staffing — To begin with, look for a corporation that has an in-house claims department — larger organizations farm out the claims process, reducing customer service. In-house claims adjusters reduce the approval process time by leveraging combined years of experience and have direct contact with leadership for escalations and increased dollar thresholds for faster payment processing. Having in-house administration also increases the likelihood you get the same adjuster with knowledge of your unit/past problems. Ensure the hours of operation are 24/7 in the United States, with the ability to talk to someone and not just upload documents. An experienced, well-seasoned staff also will know labor rates and replacement part costs across the country — which can mitigate repair facilities overcharging the customer.

2) Offering Multiple Plans — The extended warranty provider should offer plans and coverage for any budget and risk tolerance. They know the extended warranty industry, stay up on trends/recalls and network with manufactures and aftermarket partners. Remember: service contracts are not insurance — they only cover factory-approved and factory- or dealer-installed electrical, electronic, hydraulic and/or mechanical parts essential for the operation of your vehicle. These plans should allow you to go to any repair facility in the USA or Canada. This includes mobile repair professionals.

3) Providing No-cost Benefits

• Look for companies that offer higher dollar allowances and perks for free.
• Emergency roadside assistance and towing to include buy-ups for enhanced service calls.
• Winterization services for seasonal customers.
• Deductible Reduction. This is the ability to go to the dealership you purchased the unit and receive a 50% deductible reduction. If you are a senior or military veteran, look for discounts on deductibles, too. Often these discounts mean paying a zero deductible.
• Pet Benefit: in the event of an authorized breakdown, you might need to transport or board your domestic animal. This benefit reimburses the contract holder for such expenses. If you have older animals or even horses, this benefit is a no-brainer.

How to File a Claim and Get it Authorized

It is not uncommon to read in RV forums about contract holders dismayed because “they just find any loophole to deny.” At United States Warranty Corporation, we are not numb to your frustration — so read these five actions to help us, help you. After all, we would all not be in business if we didn’t pay claims and do right by our contract holders and industry partners.

1. First things first: In the event of a breakdown, contact the company to report/discuss the claim prior to the repair being started. A reputable company will have 24/7 claims adjusters to help guide you through the claims process to ensure proper coverage on all covered components. This way, they can evaluate based on the plan you have, all the items that can be covered, and which items they can’t cover — and why. How to submit a claim should be front and center.
2. Your responsibility: Most contracts state it is your responsibility to authorize the repair facility to diagnose the problem. You or the repair shop must contact the Claims Department directly to provide the diagnosis and a detailed estimate of parts and labor.
3. What happens next: The Claims Department evaluates the claim and if everything is in order, they issue an authorization number for the covered repair and confirm costs. You review and sign the work order. At USWC, more than 80% of claims are handled in two calls or less.
4. Authorization must be obtained from the claims department before repair work is started. Reach out to the Claims Department first. Document what is going on. Extended Warranty Claims Adjusters are working on your behalf. Make sure you understand the authorization process.
5. If a repair shop or mobile facility won’t work with extended warranty/service contract administrators/providers, call the Claims Department regardless to document your situation. Often the service contract company will work up the claim in the same way as if they were working with the shop. The only difference is you would pay the shop directly and the service contract provider would reimburse you via check or ACH.

Knowing what your plan covers and what it does not is critical. Keeping a log/receipt of your maintenance is very important. Having the registration page and all the other insurance or ancillary product (tire and wheel) coverage documentation will expedite those emergency situations on the road. After all, if contract holders are not educated consumers, the integrity of our industry is weakened — and at United States Warranty Corporation we want to provide a good product to protect our customers in the event of those unexpected high-cost breakdowns.

United States Warranty Corporation, Cleveland Ohio, specializes in the design and administration of outdoor recreation vehicle service contracts, since 1975. USWC offers an expansive range of coverage on towable and hybrid trailers, Class A, B & C motorhomes, motorcycles (new & used), scooters, ATVs/UTVs, personal watercraft and boats. Your dealer, being accepted to represent USWC, solidifies first-class sales and service, providing the consumer advantage. Not affiliated with United States Warranty Corp. of Florida.