What this checklist covers
Extended warranties protect customers and add revenue, but only when they are offered to the right customers and explained honestly. Mis-selling creates complaints and claims that are refused later. This checklist looks at both the offer (is it made consistently?) and the sale (is it explained, agreed and activated correctly?).
The Extended Warranty Upsell Checklist is a 15-point scorecard for eligibility, coverage explanation, pricing, exclusions, customer consent, policy activation, and document handover. Each criterion is scored from 1 to 5 on what the auditor sees on the day, and every gap goes into an action plan with an owner and a close date.
AutoSmart tip: Extended warranty upsell compliance sits at the intersection of consumer protection law and customer trust. The two highest-risk moments are the exclusions explanation (customers who later discover an excluded component often feel misled) and the consent documentation (customers who don’t remember agreeing to a product they are paying for monthly are a complaint risk). Both require specific, documented attention at point of sale.
The checks
Tap Yes, No or Maybe to try it: your answers stay in this page and clear when you refresh. For a detailed walkthrough, download our PDF or book a demo.
Eligibility and coverage explanation
- Is extended warranty eligibility confirmed before any offer is made to the customer — covering vehicle age, mileage, condition, and any service history requirements?
- Is the specific coverage of the extended warranty explained clearly to the customer — which systems and components are covered — using plain language rather than policy document terminology?
- Is the extended warranty explained as a continuation of protection beyond the standard warranty, with the customer understanding what changes at the point the standard warranty expires?
- Are different coverage tier options (powertrain only, comprehensive, bespoke) presented and explained where available, allowing the customer to choose the level appropriate to their usage and risk appetite?
Pricing and exclusions
- Is the total cost of the extended warranty clearly stated — whether paid as a lump sum or incorporated into finance — before the customer is asked to decide?
- Are exclusions communicated clearly and specifically — identifying parts and failure types not covered — rather than referring only to a policy document the customer is unlikely to read at point of sale?
- Is a value comparison offered to the customer — e.g., average cost of a common covered repair versus the total premium — to help them assess whether the coverage represents value for their usage?
- Is any deductible or excess applicable under the policy clearly disclosed at point of sale, with the customer understanding their out-of-pocket cost if a claim is made?
Customer consent and policy activation
- Is written customer consent obtained specifically for the extended warranty purchase — separately from any other product or finance consent — confirming the customer chose to take it and understood its terms?
- Is the extended warranty policy activated on the provider's system on the day of sale, with the customer's coverage commencing without a gap from the date of purchase?
- Is the customer informed of the cooling-off period (where applicable under local consumer protection rules) and how to exercise their right to cancel if they change their mind?
Document handover and governance
- Is the policy certificate or warranty document handed to the customer at point of sale — not posted later — with the document confirming coverage dates, scope, and claim contact details?
- Is the customer shown how to make a claim under the extended warranty — who to call, what information to have available, and what happens after a claim is submitted?
- Is the extended warranty sale recorded in the CRM and DMS against the vehicle and customer record, enabling service advisors to reference coverage status at every future visit?
- Are extended warranty mis-selling or complaint indicators monitored — including cancellation rate within the cooling-off period and claim rejection rates — with patterns reviewed for training and process implications?
How to run it
How the scoring works
Before the visit, fill in the dealer or centre, the auditor, the date and the audit cycle. Then score each of the 15 checks from 1 to 5 on what you see on the day, not on what the site aims for, and add them up out of 75.
- 1Not in place
- 2Attempted
- 3Defined
- 4Managed
- 5Fully sustained
- Green60–75 · 80–100%Compliant. Keep the standard.
- Amber38–59 · 50–79%Improvement needed: a structured action plan within 30 days.
- Red0–37 · Below 50%Priority intervention, escalated to regional management.
Then close every gap
Each gap goes into the action plan tracker and moves through four stages until the auditor closes it.
- 1PendingOwner and close date set
- 2In progressWork under way, evidence gathered
- 3CompletedEvidence submitted for review
- 4ApprovedVerified and closed by the auditor
Questions about this checklist
Why audit extended warranty sales?
To make sure every eligible customer is offered cover and that each sale is explained and recorded properly, which protects both revenue and the customer.
What is the most common finding?
Cover sold without the exclusions being explained, or a policy not activated after the sale.
Does this apply to service plans too?
Yes. The same steps work for service and maintenance plans.
