Usacomplaints.com » Cars & Transport » Complaint / Review: Carxchex - Didn t honor terms of aftermarket vehicle warranty. #441677

Complaint / Review
Carxchex
Didn't honor terms of aftermarket vehicle warranty

I purchased a used vehicle in May '06 with 40K miles. It was 100% stock with no modifications. The Pre-Purchase Inspection was great... All dealer maintenance per schedule. Out of curiosity, I inquired about aftermarket warranties. Given the excellent condition and maintenance history of the vehicle I decided to pass.

After 18 months of I'd experienced nothing but worry-free driving with no issues. Carchex continued to try to sell me a warranty this whole time.in February Carchex offered me a discounted full OEM warranty which covers everything excluding normal maintanance for $3,500. The warranty was good for 4 years or until 75K miles (I had 48K on it at the time). I decided to purchase the warranty at that time.

I drove the car for a few more months.in May I took it into the dealer for the regular service. At that time they found some oil in the coolant and suggest it could be a blown head gasket. The dealer then called the warranty company directly and they indicated that I must authorize $500 of teardown costs to diagnose the problem. I approved and the dealer tore the engine down. They determined that the head gasket was fine and the oil cooler was fine, so the next thing to look at is the block which requires another $1,500 of UV testing etc. The claims adjuster (Don) comes out to the dealership, looks at it, and says if I pay for the teardown and they find a fault it they will pay for the teardown and the replacement parts. The dealership gets the results back about a week later and the results are not good... The engine had a cracked cylinder requiring a total engine replacement. The dealer called the warranty company back with the news. At that point the case is reassigned to Robert because Don was terminated the previous day. Robert is not helpful and says it's not covered. I call him directly to discuss it and he tells me we need to prove what caused the crack before they will cover it. I tell him Don's position and he tells me that's why Don was fired, because he wasn't 'properly' approving claims (I interpreted this to mean he was approving too many... Even if they were legitimate). I go back and forth with Robert, telling him cracks in blocks can happen from a number of things and it is impossible to determine the actual cause. I pull out my email from when they sold me the warranty that basically says "everything except normal maintenance" but his story was the same. No coverage. I call my attorney and explain the situation and after he gives Robert a call he changes his tune a bit. After a bit of back and forth I finally I got him to agree to approve it. Even after approving the repair, they continued to find ways to nickle and dime me, from using a manual that had 8 fewer hours for the remove and replace labor to 'book' prices for parts that were significantly below actual costs.net, I ended up spending ~$3K out of pocket, in addition to the $3,500 I paid for the waranty.

Net, I did end up getting the engine replaced, and given the high labor and parts costs for I did end up saving a some money vs. Paying completely out of pocket for an engine replacement. That said, if it were anything short of a catastrophic engine failure this wouldn't have been the case. Once you factor the 2 months of not having my car and the countless hours my service advisor and I spent on the phone chasing down the claims adjusters it becomes even harder to justify.


Offender: Carxchex

Country: USA   State: Maryland   City: Hunt Valley
Address: 10950 Gilroy Road, Suite D
Phone: 4105279280

Category: Cars & Transport

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