18 Dec Partnership of People and Technology: Simplifying Garage Keepers’ Claims Management for Discount Tire

With more than 1,300 stores, Discount Tire has grown to become the nation’s leading independent retailer of tires and wheels. Founded in 1960 in Ann Arbor, MI, owner Bruce Halle started out with an inventory of only six tires (four of which were retreads). He grew this one-man operation into a company known for extensive product selection and value, with a very intentional culture that treats customers and fellow employees with respect and fairness.

But Discount Tire was facing a challenge. As the number of shops grew, inevitably the number of vehicle damage incidents grew as well. With as many as 24,000 claims per year, the task became too large for the in-house team of seven adjustors.

Discount Tire needed an expert third-party administrator to manage their garage keepers’ liability claims. But it couldn’t be just any company. It needed to be a company totally locked on to the Discount Tire culture, where best-in-class customer service is the rule.

Unique challenges of auto shop liability

When someone brings their vehicle in for repairs, there’s an expectation that it will be kept safe. If any damage occurs while in the shop, it creates inconvenience and emotional stress for the customer, often leading to a claim against the business.

As Discount Tire’s claims workload expanded, strong leadership became essential to maintain the company’s high service standards. At the forefront of this effort is Rob Ramos, Corporate Claims Manager for Discount Tire. Ramos began his career in the claims industry in 1998 and brought his expertise to Discount Tire in 2007 as a general liability adjuster. Over the years, he advanced to lead the entire internal adjustor team.

With claims increasing alongside the company’s growth, Ramos recognized that outsourcing part of their claims management was crucial. To uphold Discount Tire’s reputation for timely and empathetic customer service, the company needed the right external partner, one that could seamlessly align with their values.

Their insurance broker, Lockton recognized the problem and believed that Fleet Response could meet the challenge. They approached the company in 2017 to ask about adapting existing services to solve the problem facing Discount Tire. For Fleet Response, it meant leveraging their expertise in fleet management claims to develop a new program for managing garage keepers’ claims. It also meant taking a deep dive into the distinctive culture at Discount Tire, one where customers always come first.

 “Our biggest concern was finding a partner who could put our customers first,” recalls Ramos. “We could teach anybody how to handle claims, but we couldn’t teach them the Discount Tire culture. If we went with a typical traditional insurance carrier, we just knew that was not going to work for our customers.”

Finding a partner with the right fit

From the very start, Ramos liked what he saw in Fleet Response.

“Fleet Response wasn’t this big conglomerate insurance company. It was family-owned, which we absolutely adored. We went out and visited them  and saw how they cared about the way they treated their claimants. They were just like us. And in the beginning, I’ll be honest with you, thought it was just too good to be true.”

In 2017, Mary Sittnick, then a claim representative at Fleet Response, visited Discount Tire with her manager. During her visit, she quickly recognized a company deeply committed to customer service, with a culture that promotes from within, where every executive’s journey begins by working hands-on in the tire shops.

According to Ramos, Sittnick “just got it” and has been overseeing the Discount Tire program ever since. Fleet Response now handles about half of the 24,000 claims per year.

Ramos believes it works so well because Sittnick has trained her entire Fleet Response claims team to understand and act with the same core values as Discount Tire. And he values the fact that the Fleet Response team includes ASE-certified pros like Senior Claims Manager Stuart Braun. They understand the mechanical aspects of vehicle damage, which is a valuable resource when determining whether a claim should be paid and for how much.

Sittnick explains that a big piece of success with claims management for garage keepers’ liability is taking the time to understand everything that transpired in handling the customer’s vehicle.

“Our team asks a lot of questions, about the service the customer came in for, what parts of the car were involved, what tools were used, the layout of the store and more. We’re trying to build a timeline of events to make a good, informed liability decision, with as little guesswork as possible.”

How it works: Empowering Fleet Response

While Discount Tire’s in-house adjustors handle more extensive claims, such as a wheel off, a bodily injury or a fitment issue, Fleet Response manages claims for their garage keepers’ liability related to dings, dents and scratches that occur within repair bays.

For example, if a customer comes in and the tech forgets to put a protective puck under the lift, it can bend a pinchweld and cause damage. That claim is sent over to Fleet Response.

“Our special account instructions or SAIs are now probably the size of a large book,” explains Ramos. “Fleet Response takes it on. They contact the customer, let them know they’re handling this claim for Discount Tire, and treat them as if they were member of Discount Tire. Our stores are very involved in the claims process, so the Fleet Response adjuster typically contacts the store to get the facts of loss. A liability determination can typically be made on the first phone call, and whether this is a customer that we want to take care of, and if we can, determine whether we caused the damage or not.”

Ramos acknowledges that if a customer alleges their vehicle was damaged and it’s a $500 fix, Discount Tire will want it taken care of, whether responsible for the damage or not. “That’s just good customer service. And at the end of the day, that customer is going to go tell another customer who is going to tell another customer. That’s exactly why we’re so crazy about Fleet Response, because they understand that, when other adjusters do not.”

Discount Tire typically denies just 1% of claims. And if a claim is denied, Ramos empowers the Fleet Response team with full autonomy to offer a concession. “We want them to be able to represent Discount Tire and say to the customer, ‘We didn’t cause this damage, but we’re very sorry this happened, and we’re sorry for any miscommunication. We’d like to offer you $200, $300, or $400, because we appreciate your business.’”

The Right Combination of People and Technology

A key factor in the success of the partnership between Discount Tire and Fleet Response lies in blending the human element with cutting-edge technology. By integrating knowledgeable claims professionals with advanced platforms, they ensure a seamless, efficient process that aligns perfectly with Discount Tire’s values. This people-plus-technology approach positions them as a best-in-class service provider.

Ramos is pleased to have a partner who protects their customer service culture while also bringing numerous other benefits to the relationship with Fleet Response.

Response Time and Smart Technology

Using a system called Risk Connect, store managers at Discount Tire can quickly enter claim information through an intranet portal. The corporate office reviews the claim to determine if Fleet Response should handle it. If appropriate, the claim is transferred via API to Fleet Response’s VISIBILITY platform. This streamlined technology, supported by a responsive service team, ensures fast action. Typically, claims are set up and assigned within three hours, and customers are contacted in less than 24 hours.

Thorough Estimate Auditing

Fleet Response works with a network of contracted repair shops to avoid inflated estimates. Each claim file undergoes an audit before any payment is made, a rare but efficient practice in the industry. This process ensures accuracy and keeps costs in check.

Dedicated Claims Team

Sittnick leads a 15-person team at Fleet Response that is solely focused on serving Discount Tire. Senior claim representatives and specialists collaborate in pairs to gather information and make liability decisions efficiently and accurately.

Weekly Roundtable Meetings

Fleet Response and Discount Tire stay aligned through regular weekly meetings. These sessions help both teams stay on top of ongoing claim situations, discuss liability decisions, and address any challenges, including those related to specific vehicle makes and models.

Monthly Analytics Review

Fleet Response provides detailed data reviews each month to help Discount Tire understand complaints, assess their validity, and evaluate customer satisfaction. These insights are invaluable to a data-driven company like Discount Tire, ensuring continuous improvement.

Annual Summit Meetings for Best Practices

Fleet Response hosts yearly summits, bringing together large clients to exchange ideas, address operational challenges, and discuss regional trends. These summits provide a valuable opportunity for learning and collaboration. As Ramo notes, “It’s huge that Fleet Response does this. It’s a great resource. I wish more companies had summits!”

Continually improving the partnership

From the start, the partnership between Discount Tire and Fleet Response has been about pushing boundaries and embracing innovation. Jeff Fender, VP of Sales and Marketing for Fleet Response, explains that when they were first approached by Discount Tire, the fit wasn’t perfect.

“At the time, we didn’t manage claims for garage keepers’ liability, so we developed a customized program to meet their need for best-in-class customer service. Providing exceptional service is what we already excel at, so we simply adapted that focus to serve their customers instead of our usual clients’ drivers. It’s been exciting to grow this program alongside Discount Tire, evolving it into what it is today.”

Fleet Response is committed to continually evolve with Discount Tire, with ongoing innovations:

• Developed strategic key performance indicators (KPIs) during the post-COVID challenge, when claims were increasing but skilled adjustors were harder to find. Fleet Response began monthly reports on customer hotline complaints and were able to reduce escalations and return Discount Tire service levels to best-in-class.
• Launched texting technology to connect with claimants for more immediate contact using the Fleet Response VISIBILITY platform.
• Rolled out a new fixed property subrogation loss program to manage claims on damages to physical when a customer, delivery driver or vendor’s vehicle hits a store building.
• Partnered on a new electronic payment system to pay out claims more efficiently and quickly, with direct bank deposit or prepaid credit card rather than mailing a check.

These advances are music to the ears of Rob Ramos, as best-in-class garage keepers’ claims management supports their focus on customer service.

“Discount Tire is absolutely crazy about the partnership with Fleet Response, and we look forward to process enhancements in the future!”

If you’re interested in learning more about Garage Keepers’ Claims Management or simplifying claims at your organization, contact us at contact@fleetresponse.com. Our team is here to help streamline your claims process and enhance efficiency for your business!