Extended Warranties

#1


Neighbor has a extended warranty for a truck he bought. It was a 200k mile warranty (very expensive). He did NOT buy it through the dealer. The truck now has 195k miles and the transmission is shot. All the service was done through the dealer. It was maintained very well…has receipts for all service.



The warranty company is denying his claim because he didn’t send in the receipts every time he had the car serviced. He has all the receipts and said he can send them in now…but they say it’s too late…the receipts were suppose to be sent in when the service was done. He has all the paperwork he signed for the extended warranty and there is NOTHING in there that says he’s suppose to send in receipts of service. He’s talked with about 10 people at the warranty company and they’re NOT budging. He now has to take legal action to cover the $5000 it’s going to cost for a new/rebuilt tranny.



He’s in the right…and it will probably get covered…AFTER…he takes them to court. It might take up to 2-3 months before they cover his claim.



This is just a word of warning to every who ever thought about one of the extended warranties.

#2

The only ones worth considering are those offered by the manufacturer.

Hopefully it works out for him, but if they have that in the terms and conditions he may not have a leg to stand on. What company in their right mind would warranty anything past 150k?

#3

Thanks for the story - a perfect example why these non-manufacturer warranties can be worse than worthless. Now he has all that aggravation to deal with. I have never, and will never buy one (of either type), and I am thousands of dollars ahead.

#4

Personally I think ALL of them are NOT worth the money you pay. I would NEVER EVER buy one…NOT even from the dealer. Waste of money.

What company in their right mind would warranty anything past 150k?

That was my first question to him. I never heard of a company extending past 100k miles…let alone 200k miles. But he showed me the contract. And he paid a LOT for the warranty too…$4…OUCH. He got taken…he knows he did. And the company is in Arizona which makes matters worse.

#5

And he paid a LOT for the warranty too…$4…OUCH. He got taken…

I don’t know, maybe it’s just me, but $4 seems like a decent price for an extended warranty. Then again, maybe that’s why they’re not covering anything :wink:

Seriously though, that is a bogus requirement even if it were in writing. I think any reasonable judge would rule in favor of the vehicle owner. Too bad they have to fight for it.

#6

Your neighbor should report this to the Arizona attorney general. They probably are well aware of this company since I doubt that your neighbor is the only one they have tried to cheat. Presure from the attorney general may get them to pay up without the expense of a lawsuit.

#7

Your neighbor should report this to the Arizona attorney general.

He probably will. The AG can bring CRIMINAL action against this company…but NOT civil action. Maybe if enough people complain it’ll work.

#8
Thanks for sharing.  It once again proves:    Well any car can have major expensive repairs.  

The profit to the salesman and company is usually over 50%. So for every $1,000 you spend the insurance company has less than $500 to pay for repairs or they will loose money, something insurance companies do not do. Some people will get nothing back and some will get a lot more than they pay.  Most will get far less. In addition you need to keep in mind that the insurer has worded it to eliminate as many expensive things as they can.

Remember that the seller is out to make money and they get to write the rules and set the price.  They are not going to sell them at a loss so one way or another they are going to have you pay more than they will pay out.  

Would you gamble with a car dealer who gets to set all the rules and knows all the odds?  

Good Luck

#9

Ouch, hope he wins and takes them for all he can and then some.

#10

I don’t think that Arizona has jurisdiction, even though the company operates there and may be incorporated there. The issue is in NH, I imagine. I’m sure that Mike’s neighbor will handle it through the NHAG office.