First, understand who this company is. Fidelity Warranty Services (and Courtesy Insurance Company) is essentially owned by Southeast Toyota or SET. SET is the company that holds the monopoly on all rights to Toyota franchising south of Maryland and east of Texas. Said another way, SET is essentially the boss of all the individual Toyota dealerships in the Southeast region (since they can take away their franchises). The street address for Fidelity Warranty Services (and Courtesy Insurance Company) is Jim Moran Boulevard in Deerfield Beach, Florida. Jim Moran is the original CEO of SET which is based in Deerfield Beach, Florida. Get it?
Why this concerns you is that, if you buy a Fidelity Warranty Service product from a Toyota dealership in that region to protect a vehicle you bought at a Toyota dealership in that region, when it comes claims time, you will be asking that Toyota dealership to help you make a claim against its own boss. I wish you good luck on that one. Your premiums basically went right on into SET's pockets (less the sales commission). Then when/if it does have to pay out, SET is essentially a self-insurer, paying only the volume wholesale rate for parts and likely paying its captive dealerships for labor at a vastly reduced price. Nice racket, eh?
That conflict of interest is in addition to the unfortunate fact that insurance companies often tend to try to wiggle out of paying valid claims anyway. But in the situation described above, you won't even have the dealership on your side to advocate your valid claim.
According to my unnamed but quite-well-informed sources, Fidelity is quite adept at denying claims. The Fidelity contract IS short and written in plain English, so the average person can read it very, very carefully. (I didn't.) Do so - that's YOUR responsibility and Fidelity has made it easy for you to read it. You will find it filled with carefully-crafted clauses. Many are quite fair. However there are a number of clauses that will pretty much allow Fidelity a thinly-veiled excuse to deny whatever claim it feels like denying.
Here's one: You are not covered for the failure of a covered part due to a gradual reduction in operating performance as a result of normal wear and tear after 50,000 miles. If a part fails after 50,000 miles, well that's just normal for it to wear out, right? Claim denied at will.
Or how about this one? You are covered only if the failure is due to faulty workmanship or materials supplied by the original vehicle manufacturer. Did that turn signal stalk break right off in your hand? That's not faulty workmanship, you broke it, you klutz. Claim denied at will.
And here's some other items specifically excluded by contract under Fidelity's tip-top Platinum coverage - which the policy salesman will try to sell as protecting everything but the kitchen sink body parts & body panels & molding & door handles & locks & glass & lenses & paint (that pretty much excludes the exterior), trim & upholstery & bright metal (that pretty much excludes the interior), hinges, transmission clutch components, radiator hoses, advanced cruise control systems, appliances (whatever that means), back up alarm systems, convertible tops, rattles, squeaks, wind noise & water leaks (from poorly sealed windshields, for example) and even safety restraint systems.
And it also excludes repair of correction of excessive oil consumption or any reduction in engine efficiency. Engine problems? Claim denied at will.
Read the complaints below - and Google around a bit more - and you'll find more than a few individuals saying that failed parts parts specifically listed as covered in the Fidelity Warranty Services contract - were outright denied without the agent even bothering to cough up an explanation. Why didn't they bother to explain? Because they don't have to be bothered - they've got their clauses to wiggle around in if they actually feel the need to provide an explanation. But that would be wasted breath and wasted time, since what are you, the consumer, going to do about it anyway?
You can forget about complaining to the BBB. These days, the BBB pays its utility bills with the hefty annual dues that come from the corporations who become its members. The Southeast Florida BBB currently rates Fidelity Warranty Services as A+.
Oh, and for all those people fussing that they are going to sue and are going to get a class action lawsuit going, well they can just forget that idea also. The Fidelity Warranty Services contract clearly states You agree that all claims arising are subject to neutral binding arbitration Any claim or dispute is to be arbitrated on an individual basis and not as a class action. You expressly waive any right to arbitrate a class action or in a private attorney general capacity
There's a reason why so very many corporations these days are inserting arbitration clauses into their retail contracts and you can be sure it's not because arbitration is a fair shake for the aggrieved consumer. The courts are, in theory, bound to decisions based in law. Arbitrators are not. Unlike the public court system, arbitration is a private business. And guess who the arbitrators customer is? Guess who pays arbitration fees day-in, day-out, year-after-year? Not you, the lowly individual consumer, but the corporations the very same corporations who actually create the demand for arbitrators through their contracts. Checkmate.
If this situation has outraged you, then probably the most effective thing you can do about it now - since you've already flushed your money down the toilet - is to tell your Congressmen to back the current administration's attempt to outlaw arbitration clauses in all retail contracts. That is unless you actually think it's a wise idea that any and all corporations with which you have to do business should be allowed to set themselves entirely above all law and then do to you (and everyone else) whatever they please. Without arbitration clauses, corporations would tend to treat consumers somewhat more fairly, since it would be in the corporations financial interest to do so. It would, in many cases, be cheaper to simply honor the contractual obligations - than to shell out legal costs, fight class action lawsuits, etc.
Marvin of Akron, OH June 29, 2009
Bought a used Ranger from Montrose Ford of Akron.Dealer sold me Fidelity Platinum repair insurance. When air conditioner quit working I took it to Park Ford of Tallmadge where service dept. said I needed a new compressor.Platinum insurance was supposed to cover this repair and also the cost of rental car while repair was being made.
After several days Dealer called to say claim was denied and I would also have to pay for rental car as it wouldn't be paid because claim was denied.I called guy in Florida about this and he was just a rude,arrogant S.O.B who thought people should treat him with "respect" even as he screwed them with his bogus car repair insurance scam.
Barbara of Apex, NC June 17, 2009
Partially my own fault, but not sure this would have made a difference. On April 1, 2004 I purchased a new 2004 Toyota Avalon with the "TLC" platinum policy for a cost 1014. I have never had to use this policy.
In cleaning out some files in May, I found my original contract which expired on April 1, 2009. It stated that the purchase price of the policy was 100% refundable. In the fine print, it also said that you must request a refund within 30 days after expiration. Good gosh - how many people mark a five year anniversary for a car on their calendar?? I called the toll free number anyway - and a very smart-alecky man told me I couldn't get a refund because the policy stated WITHIN 30 DAYS (he kept saying that as if I was hard of hearing)!! No sympathy, no options, just said "That's what the contract says".
OK - so it's been slightly over two months - if the policy had ever been fully refundable, then I don't think they would have put the 30 day condition on the policy. I think a lot of people like me - don't think about getting all the fine print information - and trust me, the dealer won't tell you either.
This is the last time I will EVER buy car maintenance insurance. ESPECIALLY from this company.
BUYER BEWARE!!!
Beverly of Medina, OH April 22, 2009
We wanted an extended warranty for 1998 Mercury Mountaineer. We saw the ad for Fildelity on tv and my husband had me go online to contact them. This lady called us this morning. She asked all kinds of questions and we both talked to her. It was fine until my husband asked her to send us information on the policy. That's when she told him they could not do that until we let them know how much we could spend a month for the insurance. We are retired and on a fixed income. We wanted to read the policy and see what we could do. She told us she was a broker and the company was General Fidelity Insurance group, for Ohio. We think this is a scam, because I went online about this and could find no phone number for Fidelity. They had to contact us, we could not contact them. Please look into this.
Anthony & Lynn Sawa of Paso Robles, CA April 3, 2009
I took my VW 2007 Jetta to the local tire store and tried to get my tires replaced under the warranty that I purchased from Central Florida Eurocars. I have recently relocated and moved to California. The warranty is supposed to cover all rims and tires, I have a damaged rim along with a bad tire. I was under the impression that my warranty is supposed to replace the rim and tire due to road damage.
Fidelity refused to replace the rim and tire because they claim the tire cannot be prorated and the rim being bent is from curb damage. The rim has a flat spot on it which is where the tire tread is worn away prematurely. This area is on the inside of the rim and tire and there is no way this could be considered curb damage. Aside from the flat spot area on the tire, there is still usuable life. Lastly, how is curb damage not considered a warrantable item under road hazzard?
Purchasing a so-called warranty that flies by night, using the terms and conditions at their convenience and blatantly disregarding the customers who have paid their hard earn money out for a fraudulent cause should automatically warrant a full investigation and an all out class action lawsuit to stop these companies from taking advantage of we customers who trust them to do what is right. I purchased my warranty with Fidelity for around 800.00, and I am eating a loss of 400.00-500.00, when it is all said and done.
Brenda of Toledo, OH February 28, 2009
Bought a car in June 2005 from car dealer Ed Schmidt Chevrolet. We bought a USED car 2003 Chevy Malibu. Told them we wanted a warranty to last as long as we have the car and payments so they sold us the Platiinum coverage 6 yrs/100,000 miles. Our odometer reading was 19015 at the time of purchase. We paid for our service contrat cover 2600 for this coverage that said it started on 6/2/2005. quote from the warranty: service contract period: coverage under the service contract begins on the purchase Date shown on the from of this Service Contract and expires according to the Term or Mileage of the paln selected, whicherver occurs first.
Plan expiration is measured in Term/Mileage from (a) the Purchase Date and 0 miles fi the current Odometer Reading is 5,999 or less, or; (b)January 1 of YOUR vehicle's model year and 0 miles if the Current Odometer Reading is 6,000 miles or greater. This section was not mention to my husband and I when we signed for the warranty. Why would we pay so much money for coverage less that what was discussed. I called the warranty company and they also told me my warranty had expired and dismissed me and would not explain any more. I would like to know what happen to my last 2 1/2 years warrnaty went.
On February 25, 2009 took the Chevy Malibu car in to the service department at the dealership Ed Schmidt with humming noice in the front end of the car. First day they took my car in said no problem because it was under warranty. Next day I inquired with the service department the accual problem with the car and they informed me my warranty had expired in January 2009.
I talked to two different finance managers and one said he would check into it. I received a lot of run around, so on Friday on the way home since I had not received a call from the finance manger I checked with the service tech. He informed me I had no warranty and if I wanted my car fixed and told me it would be around 800 or so plus tax. The finiance manger NEVER called me back. They had me because I couldn't drive my car, it was in bad shape which was considered under warranty and had fixed just last April of 2008 for the same problem. They had me because they said my car wasn't safe to drive and it needed fixed. I have no choice, but have them fix the car. I have to work.
Zenovia of Millville, NJ February 25, 2009
End of Sept 08 I purchased a 03 x-type 3.0 allwheel drive jaguar. miles 57541. weeks later i purchased an extended warranty thru Fidelis, warranty co. being warranty america, llc. miles 57916 when purchased warranty. Feb 18th 09. I took my car in for service (Dealer where i brought the car)because i started hearing like a whistling noise coming from my tires or the rear of the car.
Dealership service department called my warranty co who in turn said an inspector had to inspect the problem to see if repairs would be paid for by warranty co. Problem was the drive shaft and transfer case. Inspector comes on feb 23rd 09 inspects car, reports back to warranty co. who says that they will not pay for repair problems because the problems occured before we purchased the warranty.
My car is still in service department at the dealership with repairs over 4000 (dollars) not being taken care of by warranty co. and myself fighting trying to get help for this co to honor this contract.
Beverly of Chesapeake, VA February 25, 2009
I bought the extended warranty plan with my 2005 Envoy from Hall automotive thinking I was buying piece of mind just in case something happen to the car I would not have to come out of pocket for an expensive repair. I took my car in because it would turn off when I made a sharp turn and when I started it up in the morning it just didnt sound right. I had to pay the dealership 240 to tell me what was wrong with the car and when they told me it was a burnt valve in the engine I was sure it was covered under the warranty but to my suprise it was not. Fidelity informed me they do not cover the repairs because it wasn't a mechanical failure
I'm out of 240.00 with no repairs done to my car and now I have to take the car to another mechanic to have it checked out and repaired because I have no trust for Hall automotives the dealership that I bought the car and the extended service plan. By the time I'm finished I will be out of several thousands dollars with the repairs and the cost of the warranty
Jeffrey of Norfolk, WV February 23, 2009
upon my visit to the dealership i conferred with a sales manager with my paper-work in hand, i believe his name was hamilton, he was very polite, and as i explained my problem to him he developed a very concerned look on his face and asked to borrow my paperwork. he then went back into the service area and had words with them while i waited for several minutes. i don't know what was said, but when he returned nothing he seemed honestly confused and sorry that he was unable to help me. nothing was resolved and i felt no relief from my anxiety. another sales man approached me in the new car sales area (michael), as i explained my delima he was also showing concern. through all of this, it became evident to me that no one there knows what they are selling to the purchaser. checkered flag toyota in virginia beach va.needs to know who this warranty company is and what there pushing on people.
prior to my trip to toyota that day, i stopped at cotmans transmission on virginia beach blvd. to have them put an eyeball on my problem, since they are very honest and reputable. they say the leake under my truck and called it in to the warranty company using my paperwork. the lady at cottmans (cindy) called the warranty company and was given the answer that i needed to take the vehicle back to where i purchased it, so i did and thats how this whole story started out.
driving home, i thought maybe i could reason with the warranty company, so i called them and probably got the same generic answer given out to everone else. i told the guy that the warranty says right there in black and white, that the said parts are covered. his reply was that i had purchased a wrap around warranty, my reply was that i was looking at the warranty in my hand and that it was specific in naming said parts. his reply was that i wasn't covered. i told him that i was sold a worthless piece of paper, he inturn said that it wasn't worthless then silence. so i thanked him for being so helpful and hung up the phone. lcckily i was unable to reach through the phone .
i'm scared to drive the truck, because the mechanic at checkered flag was telling me about a fitting that needed to be removed to accurately check the fluid level underneath the vehicle.he also said that this fitting could be easily broken off, oh goodie. i'm thinking, great something else to worry about. as i said before, my wife and i are pretty much dead in the water without this truck being reliable. i do love this truck, change the oil every 3,000 miles myself, but i'm not brave enough to attempt transmission work. thats why we bought a platinum warranty that was factored into the payment. this is a follow up statement continued from what i have told you before. thanks for your attention
Jeffrey of Norfolk, VA February 22, 2009
my wife and i were denied coverage on my 2002 tundra after purchasing a platinum warranty through fidelity and toyota.in the brochure it plainly states that transmission seals are and gaskets are covered. after reading everyone elses complaints on several other websites along with this site, it makes me wonder why there hasn't been a lawsuit against this outfit. how many people have to be screwed royally before someone takes a stand.
my wife and i have a small business with her and i as the only employees.she is the owner and we struggle just to pay the bills like many of you with the same complaints. my tundra was purchased in 2007 and has 80,000 miles on it, the platinum coverage is supposed to be good for 7 yrs. and 100,000 miles.we have all been sold a wolf ticket and i think its time some lawyer ,somewhere should stand up for whats right. jm&a and courtesy insurance company are some how in bed with these guys and are growing in leaps and bounds.coutesy insurance co., i think has the same address as fidelity in florida.
you can forget trying to e-mail jm&a, the link doesnt work, but they do have a picture of their president smiling for everyone to see. don't waist your time trying to contact him, i'm sure he's on a beach somwhere on your tab. i've been in contact with several agencies and toyota in california, the bureau of insurance (federal trade commission), consumer sentinel, and won't be giving up anytime soon. as long as my fingers keep working and my computer doesn't die, i'll keep on trying to get some satisfaction. do't be shy, i encourage everyone to hammer every consumer protection group out there until something is done about these pirates, maybe eventually we will get some help.
my wife and i do painting and home maintenance for clients that don't live next door, so being able to get to the job site is a big plus. with my transmission leaking it would be nice if there was some kind of enviromental concerns also. we don't have the disposable income that these takers have, thats why we bought the warranty in the first place and had it financed in. at the time of purchase you have the good feeling that you got a warranty that protects you, guess not. the cone- heads ripped you off, like so many others.
Terms of Use Your use of this site constitutes acceptance of the Terms of Use
Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.
Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.
For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice. ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof.
Print This 
Email This
