Toco Warranty, Los Angeles, California, United States: Toco Warranty: Driven by Customer Success

Written answers to the questions

"You owe me $3,285. How do you want to pay for that?"

This is what it sounds like to be hit with an unexpected car repair bill.

Most of us do not have that kind of money lying around. What would you do?

This is not a sales pitch, but a real question.

The Consumer Price Index shows that Vehicle repair costs have skyrocketed over 20% the past year. Among Inflation, vehicle repair costs are increasing due to new technology in vehicles, longer vehicle ownership, supply chain issues, and fewer qualified technicians.

Toco is dedicated to supporting customers by offering Vehicle Service Contracts (VSC) that help protect against the high costs of unexpected vehicle repairs. A VSC is a type of protection plan that covers the cost of repairs after the manufacturer’s warranty expires. Often called an "extended warranty," a VSC typically provides coverage for essential vehicle components like the engine, transmission, and electrical systems, ensuring customers have peace of mind when unexpected issues arise.

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Toco Warranty’s Customer Service Department is redefining excellence in the Vehicle Service Contract (VSC) industry. Guided by the core value, “Do Right by Customers, Colleagues, and Company,” the department serves as the customer’s dedicated partner in navigating unexpected vehicle repairs. Unlike competitors that outsource claims, Toco manages the entire experience in-house, providing customers with clarity, transparency, and proactive support.

In 2023-2024, Toco revolutionized the claims experience by launching a Claims Concierge team—a proactive service that guides customers step-by-step through the claims process. This effort, coupled with a plain-language compliance initiative, drastically reduced customer confusion and claim disputes. By empowering customers with clear, actionable information, Toco achieved a 92.3% first-call resolution rate, 15% YoY increase in retention, and a 39% reduction in BBB complaints.

Operating with integrity, Toco maintains average hold times of under 20 seconds, significantly faster than the industry average of over 2 minutes. The department handled over 150,000 customer interactions in 2023 while maintaining 4.9-star ratings on Consumer Affairs  and 4.6 on Trustpilot, earning Toco is the most awarded provider in the VSC marketspace ( over 40 Stevie and Titan awards in the last four years).

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In the calendar year of 2024, Toco Warranty’s Customer Service Department has launched initiatives that prioritize customer support, transparency, and industry-leading service. These efforts have improved customer retention, reduced complaints, and driven business growth. Key achievements include:

1. Claims Concierge Service: This dedicated team supports customers through every step of the claims process, reducing claim handling times by 30%. By proactively guiding customers, Toco improved its retention rate by 2.6% and elevated customer satisfaction.
    
2. Plain-Language Contracts & Disclosures: In response to industry confusion around coverage, Toco launched plain-language updates to contracts, scripts, and agent training. This proactive approach resulted in a 39% reduction in BBB complaints and improved customer clarity.
    
3. Compliance-Driven Sales Transformation: Toco re-engineered its call scripts and QA scorecards to emphasize customer rights, cancellation policies, and clear disclosures. Unlike competitors fined for deceptive advertising, Toco’s proactive compliance focus reduced customer disputes and enhanced trust.
    
4. Goodwill Claims Fund: Allocated over $160,000 to assist customers whose claims fell outside of traditional coverage. This initiative improved overall satisfaction and set Toco apart as a customer-first provider.
    
5. Digital Customer Portal: Introduced a self-service portal where customers track claims in real time and manage their policies. With a 60% user adoption rate, customers experience greater transparency and empowerment.

These initiatives yielded tangible results: a 73% reduction in escalation calls, a 14% reduction in handle time, and an 87.8% customer satisfaction (CSAT) score. These results validate Toco’s commitment to redefining customer service standards.

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Thank you for reviewing Toco's submission for Achievement in Customer Experience.

We believe this submission provides a high-level overview of Toco's company and products, mission/values/vision, YOY achievements, employee & customer experience, industry comparison, and supportive hyperlinks/ metrics/ attachments as evidence of our success.

• Award Submission PowerPoint: Provides and overview of Toco, supported by customer testimonials, competitor comparisons, and cultural makeup.
• Trust Indicators: BBB, Trustpilot, and Consumer Affairs profiles showcasing customer satisfaction and industry leadership.
   
• Compliance & Sales Training Materials: Examples of Toco’s award-winning training programs
   
  • PRIOR Method: Toco’s unique process is used for employee hiring, training, and coaching. PRIOR stands for Profile position, Recruiting, Interviewing, Onboarding, and Re-engaging with continued employee development.
     
  • Employee Success: Toco’s unique way of helping employees grow themselves personally and professionally.
     
  • VIRE: Toco’s unique way of reshaping an action into an emotion. When a customer calls in due to a denied claim, we cannot change the result of a claim, but we can humanize with the customer and how the denied claim made them feel.
     
  • Call Control: Skills used to manage the call flow and solve customer concerns efficiently and effectively.
     
  • Ethos Council: Toco’s culture committee focuses on the Employee Experience, Leadership, Values, and Legacy.
     
• An Introduction to Toco

Thank you for your time and consideration.

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Toco Warranty is leading the charge in customer service within the Vehicle Service Contract (VSC) industry, consistently outperforming competitors like CarShield, Endurance, and Olive. While the VSC industry is marred by regulatory issues, false advertising claims, and long hold times, Toco has set a new industry benchmark for customer care.

Call Center Metrics: While the industry standard for hold times exceeds 2 minutes, Toco keeps its average hold time under 20 seconds. Industry first-call resolution rates average 76%, but Toco outpaces them with a 92.3% first-call resolution rate.

Customer Retention: Industry retention rates average 68%, but Toco’s proactive customer engagement, Claims Concierge team, and plain-language policies have driven retention to a staggering 98.3%—a testament to the impact of proactive customer care.

Compliance Leadership: While CarShield settled for $10M with the FTC for false advertising, Toco took a different path. By embedding compliance into training, sales scripts, and QA scorecards, Toco reduced disputes and complaints by 39%. Toco’s commitment to ethical marketing and full customer disclosure positions it as a model of industry integrity.

Customer Sentiment: Competitors like CarShield and Endurance average 3.8-star ratings on Consumer Affairs, while Toco consistently earns 4.9 stars. Customers cite Toco’s transparency, faster claims handling, and personalized support as key differentiators.

Offering month-to-month contracts and employee benefit programs through “Toco At Work,” Toco achieves greater flexibility and customer satisfaction than industry-standard long-term contracts. This unique blend of transparency, speed, and innovation positions Toco Warranty as the gold standard in customer service.