I wanted peace of mind for my car, so I bought a extended warranty. I didn't mind paying a higher price, as long as I got the comprehensive coverage I was asking for. I did the home work, and finally relied on the BBB's A rating for Warranty Direct. They were nice on the phone, and seemed to be on the up and up.
I took my 2006 Kia Optima to the local Kia dealership because the check engine light was on. It was a simple oxygen sensor. When the Kia service rep called to get a authorization, he was told that they had to use "after market" parts, and they would not pay the scheduled labor costs.
When the Kia representative inquired about the aftermarket policy, he was told "that's how we roll." When he asked for the Warranty Direct rep to repeat the authorization number, he said, "I told you once", and then hung up.
This Kia dealership will no longer accept Warranty Direct as a payment option because of this incident.
On top of this, I opted for a $0 deductable. Warranty Direct would not pay for the diagnostic fee to determine what was causing the check engine light to come on. I was led to believe this would be covered.
The contract states "Replacement parts may be new, remanufactured or replacement parts of like kind and quality." When I asked Steven Sang, a Warranty Direct supervisor, why they wouldn't pay for Kia parts, he said they weren't called for.
Based on my experience, they will only pay for the cheapest parts, and you would have to go to a "shade tree" mechanic to have them pay the labor costs.
Don't buy anything from this company! If they haggle over a small item like an oxygen sensor, can you imagine what they would do for a major item?
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