Preferred Warranties Inc.

I took the car to a mechanic and a number of issues was found. A lot of them major. Preferred Warranties Inc. (PWI) was contacted and they denied the claim. They said the dealership should not have sold the vehicle in such a condition. This is part of the "agreement" between PWI and Ducky Cars. As such Ducky Cars violated the "agreement" and the warranty was voided.

The dealership refused to make any of the repairs saying that the warranty company was responsible for the repairs. The warranty company refused to cover any of the repairs saying Ducky Cars should fix the issues. There has been a back and forth and nothing got resolved. Now I cannot get my money back for the warranty because Ducky Cars says they gave it to the warranty company (PWI) and the warranty company says they never received any money for my warranty.

So, the current situation is this:

I do not have the money I paid out for the warranty.

In the state of Georgia there is no protection for used car buyers and these companies know that. I would not have purchased this vehicle if not for the warranty.

My mechanic also said that the engine WILL go at some point, so it would actually save PWI money to just replace the whole assembly now...but I can’t even get them to pay for the diagnostic they are insisting on! I cannot emphasize this enough....DO NOT BUY ANY PRODUCT FROM THIS COMPANY!! They will find any reason NOT to pay a claim. I will NEVER buy another warranty from them ever. Big waste of money.

Not to mention, I could spend the money for the additional diagnosis and Preferred Warranties can still deny the claim. I am now fully convinced that Preferred Warranty extended warranties are money grabs. Including the cost of the warranty, there's the potential that I could spend more money on this valve body replacement than Preferred Warranties. Overall, it would have been cheaper for me to not buy the warranty and instead pay the cost out-of-pocket. I guess that's a good business model for them, but a horrible one for the consumer. Ultimately, I, the consumer will lose. Don't buy products from this company.

Finally yesterday the dealership called at 6am. The dealership told them their labor charge was $150, but willing to go down to $125, and got a message that they will not negotiate labor charge it’s $90 and needed to speak with me again. My husband and I spoke to Rob at around 7:15a who was VERY RUDE to us inform me that the dealership hasn’t called and they need them to say what’s wrong with the vehicle and the average labor charge in Vegas is $90. (Mind you I spoke to someone yesterday who told me the the average cost was $85 but he knew a show that’s in my area that $95 and they will pay him. We went by the shop when we hung up. The shop mechanic spoke Russian and do foreign engine in a hole in the wall location.)

So back to my story, my husband and I got up and drove to the shop. After pulling up to the dealership the manager Wayne showed proof that he called. I picked up my phone and called back at that very moment. I was now speaking to Chris. He again informed me at 7:58a that there weren’t any notes of the dealership calling. Chris said there were only 4 agents working today. So I told him I have at dealership so finally what did they want to know. On speaker Wayne and Chris talked about the car and Chris said PWI needed proof of the problems and an estimate of charges. So Wayne said, "Are you giving me permission to break the engine down." Chris said, "No we just want proof." Wayne said, "It doesn’t make sense unless we look at what’s wrong."

Chris said, "Ok we will hear from you on Monday latest Tuesday." I was then informed that IF PWI decide NOT to pay then I the customer will have to pay $600 (cost of the breakdown) JUST to find out what’s wrong with my car and I have metal flakes. I called right back spoke to Sky (who didn’t know ANYTHING) quickly got me back to Chris when I mentioned his name. I asked him about the $600 fee if they decide not to pay. He insured me that if there is flakes it’s most likely an engine change but they need proof. I wanted to see if they can negotiate the labor rate $125 or at least $100. As nice as Chris was I fear I will have to start all over next week. All I want is the labor charge to be negotiated and for my PWI not to have me going in circles.

I don’t understand why PWI would want their clients to go to a hole in the wall shop just to save money and one I, as a client, wouldn’t feel comfortable with. We’re a military family and I expect to feel safe when I go drop off my car if my husband is not around. Also getting the run around like I’m a criminal or a bill collector is NOT PROFESSIONAL AT ALL!!!

They stated that it should have been covered but since the repair had already been done, they would not honor a claim. They then went on to state that they never talked to the repair shop even though the service owner had relayed to me very specific details about the conversation he had with them. Rather than acknowledge that the car was under warranty for a repair that should have been covered and make good on the claim - the PW reps pointed to the fine print in the contract that since they didn't have a claim approved in advance, that there was nothing they could do.

The experience got worse when the call was redirected to a supervisor. The first rep accurately stated that the call should be between the service center and Preferred Warranties. The supervisor instead stated that I should have called PW about the claim that they did not enter. Not sure how I would know that they did not record the conversation and not enter the claim. While to me this looks like it should be an easy to fix administrative oversight by one of the parties, PW uses it as a rationale to deny rightful claims. This has been a very disappointing experience and I definitely will not be shelling out thousands of dollars for a warranty that Preferred Warranties Inc. has little interest in honoring.

Non digital records are problematic. Oly one service center has a digital online records available. 2 weeks in the car is still sitting. Preferred warranties is also requesting current registration. I received an extension from the DMV due to the vehicle not passing emissions... The problem they sent me to the first car repair center where the car still failed emissions at a $3K repair bill.

Original Review: I purchased a warranty from Preferred Warranties when I purchased a 2012 528ix from a local luxury car chain on 9/28/15 for $3200. On 11/20/19 I take the car to the local BMW dealer and they have to call and authorize the repairs. The car has to be torn apart to see the failure of the part at $2500 fee if the repairs were not authorized. The failure was a covered repair and I received the estimate from the dealer for $8549.92 billing labor at 180 per hour at 24 hours and parts at $3681.50 plus tax.

This is how my contract reads: "The labor required to repair all parts covered under this agreement will be paid at the industry accepted flat rate as indicated in a current edition of Mitchell or ALLData labor guides, multiplied by the fair market hourly labor rate." None of these labor guides have been made available for comparison or editions used. PWI authorized $4.582.69 not including $390 rental that was covered. In conversation with Me and my service consultant $100 per hour labor was to be covered if the repair was covered. The labor was approved at $85.00 per hour. There is a $3967.26 difference to be paid by Me. So... prior to the car being inspected PWI suggested I take the car to non dealer for repairs.

I had taken the car to a neighborhood BMW service center and they were not equipped to expose the failed part for inspection from PWI. At a waste of $1900 for other repairs that were "needed" the check engine light was still on. The non BMW service center turned out to be a waste. The BMW dealership is looking to work with some of the costs ..as of yet no correspondence from PWI Warranties on the charges or explanation of them.

I go to submit a claim and was told that since I didn't involve them in the process BEFORE the repair was done, that they weren't going to cover it, even though the repair would've been covered, and they would've approved it. During the call I also found out that the dealer I purchased the vehicle and warranty through, used the warranty to fix a sensor that was supposed to be covered under NYS Lemon Law. This didn't negatively affect me, however if they had followed up with me, the customer, to ensure that I had requested the repair/that it was legitimate, I would've told them it wasn't and they could've saved money there.

Overall their process seems broken and it really is a shame. I don't think I'd be so upset if the warranty card they mailed with the policy information was clear that if they weren't contacted prior the claim would be denied, but it wasn't worded as such. With less than 3,000 miles left on my warranty, I fear I've just thrown away thousands of dollars.