Pre-authorization

A pre-authorization request is a process to confirm the approval before initiating activities, such as repairs, material procurement, or labor costs that are included under warranty or service agreements. This procedure confirms that all required inspections and criteria are satisfied and duly authorized by the Warranty Specialist. When a claim is created, approved pre-authorization requests can be used to generate claim jobs, avoiding re-entering of claim details. This process promotes quality assurance and operational efficiency in the process.

Use case: Warranty pre-authorization request and approval

Scenario

James, a dealer warranty administrator, must submit a pre-authorization request before a technician begins repair work on a customer vehicle with a non-functioning air conditioner system. High-cost repairs under warranty require pre-authorization, but the process faces several challenges:

• Disconnected systems and incomplete data cause request delays
• Manual data entry across multiple platforms increases errors
• Lack of standardized labor codes creates inconsistencies
• Missing cost details lead to back-and-forth communication
• Limited visibility into request status for both dealers and OEMs
• Reentering approved request data when creating repair claims wastes time

Solution

Dealer Submission Process.

James uses the MCO Dealer Portal to submit a pre-authorization request:

1. Accesses unified portal with recall campaigns, repair claims, and pre-authorization requests in one place
2. Initiates new request where MCO auto-loads vehicle assets linked to the dealership
3. Enters vehicle details including VIN, request date, work order number, mileage (km), and issue description
4. Launches guided playbook with step-by-step guidance through pre-authorization details, job entry, and preview
5. Adds claim job selecting warranty type, causal part (AC compressor assembly), action (replacement), and work description
6. Enters replacement part details including quantity, unit cost, and applicable tax
7. Selects a standardized labor code with three hours, base amount, and applicable tax
8. Adds miscellaneous costs for customer pickup services, then reviews and submits the request

OEM Review Process.

Angela, a warranty specialist, uses the MCO workspace to review and approve the request:

1. Views queue of submitted pending pre-authorization requests in the workspace
2. Opens James's request and reviews organized line items for parts, labor, and costs
3. Selects Partially Approve making individual lines editable for line-by-line review
4. Approves parts and labor but reduces customer pickup service from the requested amount to $250 with feedback that warranty policies cover pickup service up to a maximum of $250
5. Submits approval with logged actions creating full traceability

After repair completion, James uses the pre-approved request to create the repair claim without reentering information.

Benefits

• Unified access: Single portal eliminates system switching for dealers
• Faster submissions: Auto-loaded assets and guided playbooks reduce entry time
• Standardized data: OEM-provided labor codes ensures consistency
• Complete cost capture: Single interface for parts, labor, and miscellaneous expenses
• Line-level flexibility: Partial approval enables precise adjustments
• Transparent feedback: Clear comments explain approval decisions
• Full traceability: Logged actions support compliance and auditability
• Streamlined claims: Pre-approved requests eliminate data re-entry for repair claims

Outcome

James successfully submits a complete pre-authorization request with parts, labor, and service costs. Angela reviews and partially approves the request with clear feedback on the adjusted pickup service amount. After repair completion, James converts the pre-approved request to a repair claim without reentering data, reducing processing time and ensuring accurate, compliant warranty management.