I purchased an extended warranty, $2,000 for a 3-year plan on my 1995 Dodge Stealth. The only modifications to the vehicle were a new exhaust system and a K&N air filter.
After losing a water pump, I had my car towed to Carlin Dodge in Colorado Springs. The terms of the warranty were that if no claim was made within three years, then the entire purchase price would be refunded. As it turned out, I had a blown head gasket. An adjuster from Platinum Warranty came out and determined that the car was modified and therefore the blown head gasket was not covered.
Now, correct me if I'm wrong, but exhaust and an air cleaner do not constitute a modified car. The claim was denied, as was the rental car. When my three years was up I requested my refund. I was told that since I had "tried" to file a claim, it was still a claim and therefore I was not eligible for the refund on the warranty purchase.
Carlin Dodge claimed that they had broken down the motor and decided that the head gasket was blown. I popped a surprise visit and found the car untouched to the point that I don't believe that they could have had any insight into what was wrong.
I had it towed to Intermountain Coachworks, who performed the service in 4 days and had me back driving my vehicle.
