Extended Warranty / Service Contract Policy


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Extended Warranty / Service Contract Policy

Rogers, Arkansas


At The KAR Shop, we accept extended warranty and vehicle service contract claims as a courtesy to our customers. While we are happy to assist with the claims process, the repair agreement remains between the customer and The KAR Shop. The warranty company is a third party and is not responsible for authorizing repairs or payment terms with our facility.


Customer Financial Responsibility


The customer is responsible for all diagnostic charges, deductibles, uncovered labor, uncovered parts, taxes, fees, and any amounts not authorized or paid by the warranty or service contract provider.

Repairs will not begin until the warranty company has provided authorization for covered repairs. Any repairs performed prior to authorization may become the sole responsibility of the customer.


The customer remains financially responsible for all charges should the warranty company:

  • Deny coverage
  • Reduce authorized labor times
  • Refuse certain parts or procedures
  • Delay payment
  • Fail to pay the claim
  • Become insolvent or cease operations

Diagnostic Charges


Diagnostic time is required to determine the cause of a vehicle concern and is not automatically covered by all warranty providers.


Diagnostic charges are the responsibility of the customer unless specifically approved and paid by the warranty company.


Administrative Processing Fee


Warranty claims often require significant administrative work beyond the repair itself. To help offset these expenses, The KAR Shop assesses an administrative processing fee equal to ten percent (10%) of the approved repair amount, with a maximum charge of $250.00 per repair order.


This fee helps cover costs associated with:

  • Claim phone calls and negotiations
  • Photographs and documentation requests
  • Vehicle inspections
  • Administrative paperwork
  • Supplemental claim submissions
  • Communication with warranty representatives
  • Repair authorization management

This fee may not be covered by the warranty company and is the responsibility of the customer.


Teardown and Inspection Procedures


Certain repairs, including engine, transmission, drivetrain, and other major component failures, may require partial disassembly (teardown) before a warranty company will determine coverage.


The customer authorizes The KAR Shop to perform necessary diagnostic teardown procedures.


If the warranty company denies coverage, the customer is responsible for all teardown, reassembly, diagnostic, and related labor charges.


Storage Charges

Warranty companies frequently require inspections or additional review before approving repairs. During these delays, vehicles may occupy valuable shop space.


If The KAR Shop is unable to move a vehicle outside while waiting for a warranty company inspection, adjuster visit, engineering review, claim decision, or other authorization process, a storage fee of $50.00 per day may be assessed.


Storage charges may begin after the vehicle has been diagnosed and is awaiting action from the warranty provider.


Storage fees are not typically covered by warranty companies and remain the responsibility of the customer.


Right to Refuse Service Contracts


The KAR Shop reserves the right to refuse participation with any extended warranty or service contract provider at its sole discretion.


Customer Acknowledgment


By authorizing repairs, the customer acknowledges that:


  1. Extended service contracts are accepted as a courtesy.
  2. Warranty coverage decisions are made solely by the contract provider.
  3. The customer is responsible for all charges not paid by the warranty company.
  4. Administrative fees and storage charges may apply.
  5. Repairs will not begin until authorization is received when warranty coverage is being pursued.
  6. The customer remains financially responsible for the repair bill regardless of the warranty company's decision or payment status.

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