Unpaid and Underpaid Warranty Claims from Errors and Denials

For a store doing $500,000/year in warranty work, 3–5% lost due to errors, missing documentation, and unworked denials equals approximately $15,000–$25,000 per year in unrecovered warranty revenue; for a 10-store group, this scales to roughly $150,000–$250,000 per year in aggregate lost margin, plus additional hidden labor cost from manual admin and follow-up. • For a store doing about $500,000/year in warranty work, 3–5% lost from preventable denials, underpayments, and never-resubmitted claims equals roughly $15,000–$25,000 per rooftop per year; at a 10-store group level this compounds to about $150,000–$250,000/year in margin leakage. • For a store doing about $500,000/year in warranty work, 3–5% of revenue is lost to denials, underpayments, and never‑resubmitted claims, equating to roughly $15,000–$25,000 per rooftop per year and $150,000–$250,000 per year across a 10‑store group.

Service and warranty staff manually re-key repair order data from the DMS into OEM-specific portals, spreadsheets, and paper forms, chasing missing docs by email/phone and relying on personal checklists and memory to meet each OEM’s unique requirements. • Staff manually key warranty claims VIN-by-VIN into multiple OEM portals or DMS screens, rely on their own memory and sticky notes for each OEM’s documentation rules, and track denials and resubmissions in ad-hoc Excel sheets, email threads, and paper folders instead of a unified warranty claims system. • The service/warranty team and DMV Liaison pass VINs, RO numbers, and repair details back and forth using email, phone calls, printed repair orders, and ad‑hoc Excel or DMS queries; claim data is then re‑keyed VIN‑by‑VIN into OEM portals with supporting documents manually attached or faxed.