VIP Automotive Group gives every customer a complimentary loaner as part of its VIP+ program. That is a lot of courtesy vehicles across 10 stores, driven by a lot of people who do not own them. Loaners come back with dents, curb-rashed wheels, cracked windshields, stained seats, and, occasionally, serious collision damage.
For years, what happened next depended on which service advisor was at the counter. Some documented everything; some waved it through. Recovery was inconsistent, customers disputed charges they had never been told about, and nobody could say what the loaner program actually cost. The process below is what the group runs now, with ClaimsPointe, the claims management system Eagle Eye built for it, enforcing every step.
Step 1: Document at check-out, every time
A loaner damage claim is won or lost before the customer leaves the lot. If the store cannot prove the condition of the vehicle at check-out, it cannot charge for the condition at return.
- Photograph all four sides, all four wheels, the windshield, and the interior, with a timestamp. Phone photos are fine; consistency is what matters.
- Note fuel and mileage.
- Have the customer sign the loaner agreement that states their responsibility for damage, the deductible or charge policy, and that they have reviewed the condition photos.
The loaner agreement language should be reviewed by counsel and consistent across the group. A store-by-store variation is how a charge gets thrown out.
Step 2: Inspect at return, with the customer present when possible
Walk the vehicle the same way it was walked at check-out. If the customer is present, show them anything new. Most disputes come from a customer learning about a charge by mail a week later; almost none come from being shown a dent at the counter.
Photograph any new damage from the same angles as the check-out photos. This is what makes the before-and-after comparison obvious to the customer, their insurer, and, if it goes that far, a judge.
Step 3: File the claim before the customer leaves
This is the step that changed most at VIP Automotive Group. In ClaimsPointe, the advisor or loaner coordinator logs a new Loaner Damage claim in seconds: vehicle, customer, handler, priority, and the check-out and return photos attached. The claim exists before the first phone call ends, with a named handler responsible for it.
Before ClaimsPointe, this step was an email to the claims manager that might or might not include the photos, and might or might not get logged. Now the claim has a number, an owner, and a clock.
Step 4: Get the estimate and tie it to the repair order
The vehicle goes to the body shop or the service drive for an estimate. In ClaimsPointe the repair is tracked against the claim (VIN, estimate, approval, days in shop) so the claim knows its cost the moment the estimate is written, and the manager can see every loaner currently out of service and why.
Two rules the group enforces here:
- Minor damage gets fixed and billed fast. Wheel rash and door dings are repaired at the store’s rate and charged per the agreement. A $300 item should not sit in a queue behind a $6,000 one.
- Anything with a third party gets a police report and the other party’s insurance information at return, not later. That information is what makes recovery possible.
Step 5: Notify the customer and pursue the right party
The handler notifies the customer in writing with the photos and estimate attached, per the loaner agreement. Then the recovery path splits:
- Customer at fault, no third party: charge per the agreement (deductible, actual cost, or the customer’s insurer, depending on policy and state rules).
- Third party at fault: open subrogation against the other party’s carrier. ClaimsPointe tracks this as its own lifecycle (demand sent, response, negotiation, recovered) with deadlines the handler cannot miss. Full detail in subrogation recovery for dealerships.
- Disputed: every communication, photo, and document is already on the claim. That is the audit trail doing its job.
Step 6: Close with a paper trail
When the repair is done and the recovery is in (or written off with a reason), the handler closes the claim. Every action (who logged it, who approved the estimate, when the customer was notified, when the demand went out, when the check came) is on the record. If anyone asks about it a year later, the answer takes thirty seconds.
What the process changed
Three things, in order of how much they mattered to the controller:
- Recovery went up because claims stopped falling through the gap between the service drive and the office. A claim filed at the counter with photos attached gets pursued; an email without photos does not.
- Loaners returned to service faster because the body shop status and the claim status are the same record. Nobody has to ask where the Equinox is.
- Disputes went down because customers see the damage at the counter and get the photos in writing. Christina Conway, the group’s claims manager, reports average claim cycle time was cut in half after moving to ClaimsPointe.
A note on the loaner program itself
None of this is an argument against loaners. A complimentary loaner is one of the most-valued benefits a dealership can offer and a real reason customers stay with a service department. The argument is that a benefit that generous needs a process behind it, one that is the same at every store, does not depend on who is at the counter, and can report what it costs. That is what a claims system is for.
See how ClaimsPointe handles loaner damage
Frequently Asked Questions
Who pays for damage to a dealership loaner car?
It depends on the loaner agreement the customer signed and on fault. If the customer caused the damage, the agreement typically makes them responsible up to a deductible or the actual cost, often through their own insurance. If a third party caused it, the dealership pursues that party’s insurer through subrogation.
How should a dealership document loaner vehicle condition?
Photograph all sides, wheels, windshield, and interior at check-out with a timestamp, record fuel and mileage, and have the customer sign a loaner agreement acknowledging the condition and their responsibility. Repeat the same photos at return, ideally with the customer present.
What should a loaner damage claim record include?
The vehicle and VIN, the customer, the assigned handler, check-out and return photos, the estimate and repair order, all customer communications, any police report and third-party insurance details, and a log of every action and date through closing. ClaimsPointe stores all of this on a single claim.
How does a dealership reduce disputes over loaner damage charges?
Show the customer the damage at return rather than notifying them by mail later, send the photos and estimate in writing promptly, and keep the loaner agreement consistent across every store. A clear audit trail resolves most disputes that do arise.
Can claims software track loaners that are out of service for repair?
Yes. In ClaimsPointe the body shop repair is tied to the claim (VIN, estimate, approval, and days in shop) so managers can see every courtesy vehicle currently out of service and the status of its claim in one view.