
Christopher of Vacaville, CA on Feb. 13, 2003
I purchased a Wynns extended care warranty with the purchase of a used 1998 Ford Expedition. I recently took the vehicle (66k mi) in for some minor repairs, which were covered.
While on the rack, the dealer mechanic noticed that both rear axle oil seals were leaking. Happy that the vehicle was still under extended warranty, I asked that the problem be repaired.
After the oil seals were pulled off, they found that the left axle bearing was worn. They contacted Wynns and apparently it was covered.
2 days later, the mechanic calls me and tells me that the bearing had spun inside the axle housing, causing irrepairable damage to the housing ($1800, less tons of labor) and that Wynns denied the repair!
Why did I buy this $1800 warranty???
The dealer told me that the claim was denied due to the "continued operation of the failed part". I had NO indication of any failed rear axle part. No vibration, noise, leaks (til the dealer noticed a slight dribble), etc. The dealer drove the vehicle and also did not notice any indication of failure. I double checked the manual that says that the rear differential only requires service at 100k miles. And at that, its only a fluid change.
I spoke to the arrogant customer service rep at Wynns asking why it was not covered if there was absolutely no indication of failure? Because you continued to operate the vehicle after the part failed Again, I told him that there was no indication of any failed part, and that it was a mechanical breakdown, and therefore should be covered under my bumper to bumper extended warranty. Well, its already been denied! was his abrupt reply. I then asked to speak with the person who denied the claim.
After being on hold and getting the run around for at least 30 minutes, I spoke with Eva A. (customer service rep) who was at least polite and professional, but continued to repeat that it was an exclusion due to continued operation of the vehicle after failure. I wasnt getting anywhere, so I asked to speak with her supervisor and that I intended to take this further. She stated that she would give the report to her supervisor and that he would call me back.
Of course, it was about 24 hrs before he called (Frank Saenz, 800-922-4392 x168). I explained the situation yet again. This guy was completely arrogant and condescending. He again told me it was an exclusion in their agreement. Again I explained that there was no indication of failure. I asked if he took apart his vehicles rear differential and axles to check his bearings on a weekly basis to see if they were damaged. No reply. I asked him what the hell I bought this warranty for if it didnt cover failures. I cant answer that.
He stated that only the original failed part was covered, nothing else. I said, So, if I had a blowout on the freeway, you would cover the tire, but not the damaged rim because I drove it off of the freeway to the side of the road? Thats correct. he says, If your radiator hose blew and the engine overheated and blew up, only the hose would be covered. I explained that you would have several indications in that situation. Temperature gauge, warning light, etc, and that you would know to shut the engine down before failure. No, the engine could blow right then. he says. I then asked, So if the engine continues to operate beyond the failure of the said part for even a split second, this is still continued use beyond failure ? Yes. That is absolutely ridiculous! I told him, now seething with anger.
What a scam! This tells me that they must use this exclusion to deny ALL their large claims, and is a great piece of money inducing fine print for this wonderful company.
I asked to see this in MY contract and he pointed me to a small sentence under Exclusions.
Damage to the vehicle caused by continued operation after a breakdown of a covered part. I told him that it was a very vague statement and that this warranty was sold to me under the misrepresentation that it was a bumper to bumper warranty. Well sir, Im holding a contract that YOU signed, stating that you understand the terms!
When pressured to buy the warranty originally, the dealer (Shellworth Chevrolet, Vacaville, CA, from whom my combined family has purchased 10 vehicles!) asked me if I knew how much a computer, or an engine costs, and assured me that it would all be covered under this warranty.
From the information given by the Wynns rep,, I can see how they could get out of almost any claim. For example if a spark plugs tip broke off in an engines cylinder and caused the engine to blow, Wynns would only replace the spark plug!! You tell me if ANYONE would buy this policy if this were known upfront.
As it stands now, I am contacting any and all agencies, watchdog groups, etc. to spread the word of this legal thievery that is taking place. I also plan to ask the dealer for a refund for the policy, which I dont believe will be honored.
The Ford dealer (Ron Dupratt Ford, Dixon, CA) has been great. They have kept me informed every step of the way and have told me worse horror stories about Wynns than my own. They offered for me to store the vehicle on the lot while I get this worked out, or find a cheaper used part in case they do not pay the claim.
There also is the issue of why the part failed in the first place. Seems to be a design or build flaw by Ford. This type of failure is almost unheard of with todays technology. But thats a different issue.