How CareGard Warranty Services Saved Millions
with Vehicle Owner Verification

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In the automotive warranty business, small data improvements can lead to massive financial impacts. CareGard Warranty Services' partnership with Authenticom demonstrates how smart data verification can transform risk management, improve customer experiences, and save millions in the process.

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The challenge:
Tracking ownership changes

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CareGard manages over 1 million vehicle service contracts, but they faced a significant challenge: ensuring warranty claims were honored only for vehicles under original ownership. Without reliable ownership tracking, they encountered:

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• Invalid claims from vehicles that had changed hands
• Financial losses from honoring warranties that should have terminated
• Inefficiencies from processing claims with outdated information
• Wasted resources investigating questionable claims

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For non-transferable warranties in particular, this created a substantial financial risk and operational headache.

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The solution:
Real-time ownership verification

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CareGard implemented Authenticom's Vehicle Owner Verification (VOV) solution to gain real-time insights into vehicle ownership status. This powerful tool allowed them to accurately track current owners of vehicles with active warranties, improve risk planning with better visibility into their contract portfolio, and reduce administrative overhead by eliminating unnecessary claims investigation. Plus, with the insights they could pull from the software, they are better equipped to make data-driven decisions about warranty offerings and pricing.

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The results:
Data that delivers

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The implementation of VOV dramatically transformed CareGard's operations:

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• 362,000 VINs submitted for ownership verification
• 15.65% of vehicles had title transfers identified through the system
• 56,000 VINs were transferred to new owners
• $50 average spend saved per verification
• $14,400 in savings per location
• $2.83 million in total savings

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For CareGard's network of 197 dealers across 2,000+ dealerships, these savings represent a significant boost to the bottom line while simultaneously improving customer experiences for legitimate warranty holders.

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The human impact:
Better service for everyone

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Beyond the impressive numbers, there's a human element to this story that shouldn't be overlooked. As Samuel Armendariz from CareGard's Risk Management team explains:

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"Michelle's been a great help in reducing our costs. Since we're selling a non-transferable warranty, the Vehicle Ownership data Authenticom has been able to provide has allowed us to have better controls in our claims adjudication process and saved our dealers and partners tons of money."

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Those savings translate into better service for customers with valid warranties, as resources can be focused on providing excellent service rather than investigating questionable claims.

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Interested in learning more about how Vehicle Owner Verification could benefit your dealership or warranty program?

Contact us to discuss how we can help you implement a solution tailored to your specific needs.

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