Lack of good faith warranty claim handling: I am paying out of pocket for repairs that should be covered.
Consumer Complaints & Reviews
On July 13, 2010, I purchased an extended protection warranty from Preferred Warranties Inc. for the used vehicle that I purchased. My vehicle is a 2007 Jeep Grand Cherokee 4x4. The extended warranty cost me $1,500, and was to cover a wide variety of items if the car broke down or needed repairs over the next 48 months or 60,000 miles.
So far, I have needed to use the extended warranty twice. The first time I tried to get Preferred to cover what is specifically supposed to be covered under the warranty, they told me that I had not followed their precise rules on pursuing a claim and that they would not honor any warranty for the repair. The second time, I was particularly careful to follow the procedures so that the repair would be covered. I thought that I did everything needed, including having the repair shop call Preferred to make sure everything was done correctly.
Once again, Preferred found some small procedure that they claim was not followed and refused to pay for the repair. So far, I have paid close to a $1,000 for repairs that are specifically designated as being covered under the extended warranty from Preferred. From the instant I was on the phone with the Preferred representative, I got the run-around. Before I could barely state what I was calling for, I received an adversarial challenge that I had not followed some minute procedure so the repair would not be covered. This was followed in later calls with Preferred substantially negotiating down what they would pay for a covered repair because their procedure was not followed to the "nth" degree, even though I did everything possible to follow these procedures.
I have been around long enough to know when I see a scam and this is it. Preferred is happy to take your money and give the impression that any major repair for your used vehicle will be covered under their warranty. But then, they actively seek to find a loophole or super-technical item to not pay, or to negotiate down the amount that they will pay. This is a total rip-off and an expensive one at that. So far, I have paid for an extended warranty, and I have also paid for the repairs that were supposed to be covered by that warranty.
Preferred is running a scam. I would like my $1,500 back that I paid for the warranty. Clearly, Preferred has no intention of ever paying anything under it. I still have 41 out of 48 months left on the extended warranty, but with no real hope that Preferred will ever honor it and pay what it is supposed to pay. I also note that I am just the latest victim of these same business practices of Preferred. Preferred is the subject of numerous similar complaints as can be found at the following website locations, among others: **, **, **, ** and **.
About one year ago, I bought a used truck and two weeks ago, the motor broke. I took it to the mechanic, showed him my warranty and he said that it was covered. The warranty called me and said it wasn't covered.
Purchased Isuzu Rodeo from dealer in Plano, TX and drove car for 1100 miles (earlier reported as 90 miles) and engine had to be rebuilt. Cost of rebuilding engine was more than $2900 (earlier reported as approx $2500). Warranty paid NOTHING.
Cost us $2900 to rebuild the engine and we thought we were protected with the Warranty that we purchased.
Bought used Isuzu Rodeo from a dealer in Plano, TX. for $6000. Purchased warranty from Preferred Warranty, Inc. Checked to make sure there were dealers nearby that accepted their warranty. Confirmed 2 dealers. Ran Carfax on vehicle before purchase, checked fluids and normal wear and tear and all were fine upon purchase. We put less than 90 miles on vehicle, and had to have new engine installed. Cost us $2500. They have denied all claims.
Purchased a vehicle and the extended warrantie through this company. The truck had a few minnor issues after purchase and the service needed was not under warrantie. Just last week a major problem with the truck, A spark plug shot out of the motor, resulting in a new head needed for the motor. A $2,800.00 problem. My bumper to bumper warrantie would not cover the repairs, due to crafty lawers writing this pollicy with many hidden loop holes to get them out of almost every repair imaginable.
6/23/2008, Four mounths ago I brought a house along with a one year apliance agreement. My aplainces were inspected and in very good working condition fairly new. The figerator has started to link from the in sides to the point where bowl are put in to caught the water, and their is a bad smell from the water.
I first had my husband call the waranty company because I was on my way to work, but could notleave he seem to be having a hard time comunicating with the lady on the other end. He told her four months ago we brought the house and two weeks ago the leak in the frigerator begin. She then percede to use some form of word not to his unerstanding then strated playing this game of confusion. He said she said.
However she said she will not fullfilled the contract agreement and to right aletter of dispute. In the mean time food has gone bad and more money spent on eating out. i have paid for a contract that I want to be up hold. This has cause me some economic stress on money and food. My figerator is damage and i deserve to have it repair or replaced.
I purchased a used 1996 Mitsubishi Eclipse, for my son, from Royal Imports in Roanoke, Va. Included in the purchase of the car was a three month, 4000 mile warranty through Preferred Warranties which covered engine, power train, etc. This was a selling point for Royal Imports and put my mind at ease in should anything major go wrong with the car. My son an I checked the car out and noticed nothing out of the ordinary and decided to go ahead and purchase. After about a two week period I was checking the car over and found that the oil level was low.
I then kept a closer check on the oil and over the next two week period I noticed the oil level to continue to drop. I followed my son to work one day and as I drove behind him I noticed an abnormal amount of smoke coming from the exhaust as the car was setting at stop lights and a big puff of smoke when he eccelerated from a stop. I then became very concerned as the problem seemed to be getting progressively worse.
I decided to call Preferred Warranties and talk to them about the problem. Preferred agreed that I should go ahead and process a claim so I proceeded to take the car in to my regular mechanic at Coyner Springs Service Center in Blue Ridge, VA. This was agreeable to Preferred.
I proceeded to follow the Warranty Companies instructions and kept in contact with them throughout the repair of the vehicle. The car was checked out by an independant Automotive Consultant along with the part owner/mechanic at Coyner Springs. As it tuned out when the engine was torn down and the report from the consultant was turned in to Preferred for review so they could make sure the wording was correct, Preferred refused to honor the contract. They stated that the reason they would not pay for the repair was that my situation fell under an exclusion in the contract. Preferred stated that the smoking problem was caused by the engine piston rings freezing up and allowig oil to pass by the rings and burning in the exhaust system. They stated specifically that the condition of stuck rings ocurred over a period of time and miles and not during the 942 miles I had personally put on the car.
As a result of Preferred Warranties refusal to pay, I paid the repair bill in full to Coyner Springs. The total was $2,532.73 for a used vehicle that my
son had driven for less than a month.
My contention is that it can't be determined exactly when the problem started and in that the smoking problem was not detected by either Royal Imports or by myself at the time of purchase it cannot be proven that this problem exsistated in its full blown state at the time. Preferred is resting their case fully on conjecture and what they think may have happened.
