Overdrive

June 2018

Overdrive Magazine | Trucking Business News & Owner Operator Info

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36 | Overdrive | June 2018 A ftermarket warranties have become popular add-ons in a used truck purchase for extend- ing coverage beyond a factory warranty. The key difference in them versus an original equipment manufacturer's warranty is that "OEMs typically cover many more items, many of which don't ever fail or that are not expensive to replace," says Lynn Murphy, president and chief executive officer of warranty provider Premium 2000. "Aftermarket warranties typically cover expensive game-changing repairs, ones that can bankrupt a commercial truck owner." Aftermarket warranties focus largely on the engine, aftertreatment system, transmission and rear axles, since failure along the powertrain can be expensive in parts, labor and downtime. Most used truck buyers only have enough for a down payment, says Ted Fick, executive chairman of National Truck Protection. "The last thing they can afford is to pay for a $20,000 engine repair," he says. "For a few hundred dol- lars deductible, you can keep from being thrown into bankruptcy." In most cases, any truck that passes an underwriter's certification inspection is eligible for warranty coverage. Fick says trucks older than 10 model years with more than 1 million miles would require more testing, which could include a dynamometer test. Underwriters also require an ECM download to check for known faults. "If there are issues, we ask that those be remedied before we put the warranty on that vehicle," he says. As with an OEM warranty, ongo- ing maintenance is part of keeping the aftermarket policy valid. Policyholders must document each time the truck is serviced, and those records can be used to support the warranty claim's validity. "Our warranty has specific main- tenance requirements per the class of vehicle," says Lindsey Stroschein, execu- tive director of customer and retailer services for TrüNorth Warranty Plans of North America. "Regular preventive maintenance at a licensed certified facil- ity is required in order to keep the war- ranty in place." Aftermarket warranty terms normally require the owner to keep track of PM receipts, making sure to include the VIN, date of service and mileage. If PM man- dates are not met, a claim can be denied and the coverage voided, Murphy says. "If we pull the plug on the [oil] pan, and it looks like jelly coming out of it because you haven't been chang- ing the oil, then we're going to require oil change maintenance records," says Chad Lucky, regional service director for National Truck Protection. Stroschein says customers are required to submit their PMs to the claims department for review as part of the claim. "Only in a fleet situation approved by TrüNorth is the customer allowed to do their own maintenance," she says. A customer with five or more trucks is considered a fleet. Truck Master allows policyholders to perform their own maintenance. "In the rare event that we ask for maintenance records, we will even accept invoices for purchasing the materials needed if the customer performs their own mainte- nance," says Jeff Dobish, the company's president. "There are very few claims that require us to ask for maintenance records." When repair is needed, the only requirement of the policyholder is to use a licensed mechanic with Automotive Service Excellence certification. "There are no in-network restrictions," Dobish says. "We want our customers to use How aftermarket truck warranties work BY JASON CANNON Unlike a truck maker's comprehensive warranty, aftermarket warranties focus largely on the powertrain.

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