Preferred Warranties Inc

Review: After bringing my truck to a shop of my choice which the contract states is allowed and the initial appraisal be completed, the warranty company wrote a claim for $2,300.00 for repairs to the transmission. However, this was based on putting a used transmission with similar miles on the transmission on the car that the warranty company would provide. I had the transmission brought to a proper transmission facility to complete proper overhaul on the part and repair this correctly. The transmission was looked at and the damage was more extensive then origninally expected. The casing for the transmission needs to be replaces as well which adds roughly $600 to the repair cost. I have already gotten the shop to reduce their hourly rate from $105.95 an hour to $89 an hour to match the warranty companies rate of labor. But the inital estimate of $2,300 is not a suffecient amount to properly repair this vehicle. I contacted the warranty company after speaking with the shop and explained to them there are more repairs needed to the transmission and it will cost more than they expected. Their response was that they will only authorize the $2,300 in repairs. So now after purchasing this vehicle 1 year ago, only driving 13,000 miles, I still have to cover the additional $1,000 in cost the warranty company that was purchased through the dealer out of pocket. I purchased the warranty plan with the vehicle to avoid this issue down the road. I should have refused myself since the amount spent on the warranty is greater then the amount the are authorizing for the repairs.Desired Settlement: The desired outcome is to have the authorized amount adjusted from $2,300 to $3,300 to complete the repairs of the vehicle.

Business

Response:

Preferred Warranties Inc. (PWI) would like to respond to **.

[redacted]’ complaint #[redacted].

On 07/03/2014, PWI authorized $2300 for a used transmission for

**. [redacted]’ vehicle. **. [redacted] was given

the option to ship in a used transmission or apply the $2300 to rebuild the

transmission.

On 07/07/2014, PWI offered a few shops where **. [redacted] could

take the vehicle but he elected to take it to the shop of his choice, [redacted]

[redacted]. The shop estimated $3100 to rebuild the transmission. **. [redacted] asked if

PWI would increase the amount we are applying to the transmission. The claims adjuster

explained to **. [redacted] that the cost to replace the engine would be $2300 and

that if wanted to have the transmission rebuilt, he would be responsible for the

difference.

On 07/10/14, **. [redacted] opted not to replace the engine and decided

to apply the $2300 towards repairing the transmission and paying the

difference.

On 07/14/14, **. [redacted] called stating that his shop ran into

complications rebuilding the transmission and asked for more money to rebuild.

The adjuster explained to **. [redacted] that the $2300 was all PWI could authorize

for the repair.

.

Please refer to the contract, under WHAT IS COVERED BY THIS

AGREEMENT:

When making repairs, the repair center authorized by PWI

will use components of the same type and quality as those removed, which may

include rebuilt, remanufactured, recycled or nonoriginal manufacturers’ parts

at the sole discretion of PWI. The labor

required to repair or replace all parts covered under this Agreement will be

paid at the industry accepted flat rate as indicated in a current edition of

[redacted] or [redacted] labor guides, multiplied by the fair market hourly labor

rate.

The $2300 that PWI approved was

calculated on terms of replacing the transmission. PWI was able to find a

transmission at $1500 from a reputable supplier with a 30 day warranty with

fewer miles than **. [redacted]’ vehicle,

$569.60 for labor according to the shop, $200 for fluids/filters/seals

and $75 for diagnostic time. This amount less the $100 deductible is how the

$2300 was calculated. **. [redacted] was given several options to repair his vehicle

he choose to rebuild the transmission. $2300 remains the most we are

contractually responsible for paying.

Should **. [redacted] have any questions regarding this claim,

please do not hesitate to contact our office at ###-###-####.

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Review: [redacted]

I am rejecting this response because:The shops PWI has offered were presented after half of the work was already processed. Changing shops with still cause myself to incure additional cost. Also in the contract it does not state they can use a used part from a junk yard. It states rebuilt, remanufactured, or recycle. Recycle is another way of putting rebuilt. For a product to be recycled it must be taken from old and processed to create new. Therefore their offer for a used transmission with 3,000 miles less than mine is unacceptable. I refuse to have to deal with this issue again in 2 months when the transmission fails again at the same mileage. PWI is simple temporarily fixing the issue to get me through the warranty until it is out of warranty and tell me it is no longer covered. They are a warranty company and should honor their contract and their commitment. I have now been without my vehicle for what is going on 4 weeks. That is an entire month. I have paid my monthly loan amount for a vehicle I have not been able to drive. I also have been having to pay for a rental vehicle because their contract only covers rental cars for 3 days. I have gone above and beyond as well as the shops to work within my power to keep this transmission fix within their budget but there is no transmission shop that will be able to honor that low of a budget for this transmission. I have had a vehicle with a bad transmission before and it too was fixed at shops the PWI asked me to take it to. The transmission was rebuilt a total of 9 times while I owned that car and I had to pay for 3 full out of pocket. I am not going through this again. I ensured the transmission was being fixed properly to have a reliable car which is what I paid for and still am paying for. If I wanted this type of hassle I would have bought a cheaper car for cash and not dealt with PWI. They are simply trying to make money by altering their contracts to customers who do not know any better. I am even having them pay the shops directly so they can get the invoices of the actual work being performed and verify the amounts.If PWI wants to have the ability to use used parts in a vehicle without rebuilding them, they should state that in their contract when customers purchase the warranty. PWI could be having a transmission installed that is used and was damaged from a wreck, or had a failure just as mine did. They don't seem to care. Well this is my vehicle that I am pouring hard earned money into. Without this vehicle I am losing money. They need to just honor their contract and contact the shops I am dealing with and pay for the repairs and get the job completed.

Regards,

Business

Response:

Preferred

Warranties, Inc. (PWI) would like to respond to **. [redacted]’ rejection to our response

on 07/18/14.

PWI

recommended a local repair shop to **. [redacted] before he took his vehicle to his

shop, [redacted]. PWI then offered

**. [redacted] to take his vehicle to another shop after the transmission was at

[redacted]. Both times **. [redacted] declined the

shops PWI offered.

PWI is not obligated to provide a new or rebuilt transmission

per contract terms.

.

Please refer

to the contract, under WHAT IS COVERED BY THIS AGREEMENT:

When making repairs, the repair center

authorized by PWI will use components of the same type and quality as those

removed, which may include rebuilt,

remanufactured, recycled or nonoriginal manufacturers’ parts at the sole

discretion of PWI. The labor required to

repair or replace all parts covered under this Agreement will be paid at the

industry accepted flat rate as indicated in a current edition of [redacted] or

[redacted] labor guides, multiplied by the fair market hourly labor rate.

On 07/18/14, PWI paid $2300 via credit card to Level 10, where

the transmission is being rebuilt.

We apologize for any

misunderstanding **. [redacted] may have regarding coverage however PWI has paid for

what is contractually required.

Review: Bought a [redacted] in 2013 got the warranty with it for 48 months, It just started to burn oil there is no leaks at all. my dealership performed a oil consumption test. It is using 1 qt per 1246 miles. The warranty co. is saying 1 qt to a 1000 miles is acceptable. WOW really, I never heard of such a thing except on a engine break in time where the rings have not seated in yet. They now want me to pay the shop to tear the engine down to find IF there is a problem and where, but since its with in the allowable specs I will most likely have to pay to replace what it needs because of normal wear and tear. They dont cover normal wear and tear. Or what falls under there reason for the spec. So either way I will have to pay and it wont be covered. If I remember I paid around 2200.00 for this warranty. So I should not have bought this warranty and just paid out of pocket to replace motor with a used one for less. This company is making out like a fat rat. Something needs done about it. They now have a no refund policy after 30 days. So when you need to use it and they say its not covered your out the money no matter what. But you can still cancel it and have nothing in return, lol I still have over 2 yrs left on this warranty but they will let me cancel it? That's probably because they know they aren't ever going to pay for anything anyway so that will be better for them so they don't have to hear from me ever again.Desired Settlement: Pay me back what you owe me since you wont fix the problem. I have never used this warranty so it has cost you nothing. I will be posting ads on my business site and facebook from this outcome to help better serve others in not purchasing this contract.

Business

Response:

See attached document.

Consumer

Response:

I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me. But keep in mind They too have a contract with me! That they must up hold as well! So if this gets worse which it will because things don't fix themselves. I will be in contact. I will post this info elsewhere and let people know about this company! And trust me I have a lot of friends and customers, not to mention websites. And as far as retaining my vehicle, was you going to buy it back? That's news to me. Preferred Warranties, Inc. (PWI) would like to respond to Mr. [redacted] complaint # [redacted] on 1/30/15.

Based on the independent inspection, no mechanical failure was found on Mr. [redacted]’s vehicle.

The customer’s complaint is excessive oil usage. However based on the report, the usage falls within the allowable perimeters of the vehicle’s manufacturer. (1245 miles and a qt of oil is ok?)

It is our understanding based on the conversation with the selling dealer, Mr. [redacted] had opted to retain the vehicle and the Vehicle Service Contract.

PWI would like to remind Mr. [redacted] of his obligations as a contract holder in reference to fluid levels. YOUR MAINTENANCE OBLIGATIONS YOU have certain duties, including the duty to maintain the vehicle under the standards of the manufacturer and the duty to protect against any further damage caused by continued operation. YOU must have the automobile covered by this Agreement serviced as follows: 1. Change engine oil and filter to manufacturer’s specifications. 2. Check and maintain fluid levels, including: coolant, transmission, brake system master cylinder, power steering pump, front and/or rear axle. 3. Follow all other manufacturer recommendations as provided in the owner’s manual. YOU must save all receipts for service performed on the vehicle covered by this Agreement. YOUR failure to have service to the Covered Vehicle in the manner described above may result in the denial of claims presented under this Agreement.If Mr. [redacted] would like to pursue this claim further, he can contact the Claims Department at ###-###-#### for the appropriate next step, which will include further teardown of the engine at Mr. [redacted]’s expense. (2200.00 for warranty but I pay to tear it down) Regards, [redacted]

Review: Warranty Brochure Advertisement lists covered parts that can not be determined failed until after car engine is taken apart. Repairs can not be made until authorization is given by the Warranty company, however the Warranty company will not give authorization. The warranty company wants the consumer to assume the cost to take the engine apart and then verify the covered part is damaged rather than accepting the mechanic recommendation. Both (dealer/mechanic & warranty) agree that replacing the covered part will remedy the problem (oil leak).

The warranty service person actually recommended replacing the valve covers but repeatedly stated the part was not covered.This was repeated several times to the dealer and the customer. The warranty service rep indicated that [redacted] have a reported history with the diagnosed problem and recommended replacing the valve covers, however indicated that valve covers were not a covered part of the warranty.

Only after the consumer reviewed the warranty brochure and discovered the part was indeed a covered part, the warranty company then said it is covered however an inspector needs to verify. They never offered an explanation why they said the part wasn't covered.

This is the third occurrence of reporting a problem to the warranty company for a covered part and they refused to pay the claim.Desired Settlement: Customer want to claim to be paid or refund of warranty service contract.

Business

Response:

We are responding to the complaint filed by [redacted]

regarding his Vehicle Service Contract.

We received a call on May 2 from [redacted] at [redacted]

indicating that **. [redacted]’ [redacted] was there with a problem with the navigation system

and also an engine malfunction light and service engine soon light on.

Specifically, [redacted] told us that there was an oil leak that was causing the

vehicle to burn oil. We told [redacted] that the parts he mentioned as needing

replacement (navigation system, valve cover gaskets, timing gaskets and valve

guide seals) are not listed items that would be covered under **. [redacted]’

contract. **. [redacted] called back later that day and we gave him the

same answer.

**. [redacted]’ “Plus” contract covers the items listed in

Sections 1-20 of the Contract. Unfortunately, the items which

are in need of repair or replacement are not listed in these sections.

Valve seals are specifically excluded by Section 39 of the Contract.

Seals and Gaskets are not covered by the Contract unless they

need to be replaced in connection with the replacement of a covered part.

Thus, if the valve covers were bad, we would replace them and the associated

gaskets.

It is possible that following a proper diagnosis there would

be parts of **. [redacted]’ vehicle that would be covered by the contract.

For example, if the shop were to remove the cylinder heads and

we were able to verify that the valve guides, or the valve covers, were worn

out, those would be covered by the contract.

If in the

process of repairing the non-covered items, [redacted] finds a failure of any

other items, they should contact us immediately and if they are listed items on

**. [redacted] contract, we will happily cover them in accordance to the terms of

his vehicle service contract. However, if the problem is not related to the

failure of a covered part, we would not cover the diagnosis and tear-down

costs. Please see section 32 of the Contract.

In sum, this is a Contract issue. We will gladly

uphold our end of the Contract to the extent that necessary repairs are covered

by the Contract. **. [redacted]’ complaint seeks either payment of the

claim or refund of the contract. In this case, while it does not

initially appear that the parts in question would be covered, it is possible

that a tear-down would reveal that coverage applies. We will uphold our

end of the Contract for the remainder of the Contract life. Under the

circumstances, we do not believe a refund is appropriate.

Respectfully,

Preferred Warranties, Inc.

Review: I bought a 2008 [redacted] from [redacted] from [redacted] New Jersey with a power train warranty, within a couple weeks the transmission went on the car .I called the dealership to try to bring the car back they said no .I called the warranty company they sent me to [redacted] in [redacted] where the found other things wrong with the car besides the transmission the radiator was leaking needs to be replace and fan clutch was bad and the rear axel seal was leaking which the warranty company said it's not cover and then they wanted [redacted] to used junk yard parts to fix the transmission which [redacted] said no they only use dealer parts,after arguing with the warranty company the repairs were done with ford dealer parts. I had to pay for the radiator,fan clutch and the axel seal $1448.91.after a month my wife noticed the the car temp gauge was in the red zone she pulled over and got the car towed back to the repair shop They said it was the head gaskets the warranty company sent a adjuster which he said that it was our fault that we were driving the car while it was over heating and he noticed that the cyclinder walls had scratches and that it's wear and tear over time and that it's not cover.I bought a used replacement engine and had [redacted] put it in for the cost of $4611.13. What get me is that the warranty company said it will cover a car that has 104500 miles on it in the begining and later and say it has wear and tear on it and we are not covering it. For them to say that we did this to the car is fraud we just bought the car it spent more time in the repair shop then on the road,they lost money on transmission and the warranty company doesn't want to lose any moreDesired Settlement: I want a refund for the replacement engine which was $4611.13 and refund replacement for new radiator and new fan clutch and axel seal which was 1448.91 that includes coolent and labor which total $6060.04

Business

Response:

Preferred Warranties, Inc.

(PWI) would like to respond to [redacted]’s complaint # [redacted] on 08/04/14.

On 05/02/14, [redacted]

called in a claim to PWI. [redacted]’s diagnosis was the seal in the radiator was

leaking coolant; also a problem with the transmission. The

Powertrain Vehicle Service Contract (VSC) that [redacted] purchased is parts -

specific; therefore parts not listed under the Powertrain coverage are not

covered items. The radiator seal is not a listed item for coverage, but the

transmission is covered.

Please

refer to the contract for Powertrain Coverage:

When POWERTRAIN Coverage is selected on the front of

this Agreement, only the parts listed in 1-4 are covered. Parts not listed are

not covered.

1. ENGINE - All internal lubricated parts, including pistons, piston rings,

crankshaft and main bearings, connecting rods and rod bearings, camshaft and

cam bearings, push rods, rocker arms, timing belt and gears or chain, valves,

valve springs, valve push rods, lifters and oil pump. The engine block and

cylinder heads are covered only if damaged by the failure of a covered internal

lubricated part.

2. TRANSMISSION - All internal lubricated parts in transmission case, torque

converter, bell housing. The transmission case is covered only if damaged by

the failure of an internal lubricated part.

3. DIFFERENTIAL - All internal lubricated parts in the differential housing,

differential cover. The differential housing is covered only if damaged by the

failure of an internal lubricated part. All internal lubricated components in

transfer case. Transfer case is covered only if damaged by the failure of an

internal lubricated part.

4. SEALS & GASKETS - Cylinder head gasket and intake manifold gasket when leaking

internally. All other seals and gaskets are covered only if required in

conjunction with a covered repair.

PWI authorized

$2,165 for the transmission claim which included the cost of a recycled

transmission, labor, covered diagnostic time, and fluid and filters necessary

to complete the repair. PWI uses

components of the same type and quality as those removed when making repairs.

Please refer to the

contract:

WHAT IS COVERED BY THIS AGREEMENT

This

Agreement is not an insurance policy and, to be valid, must be purchased at the

same time as the vehicle covered by this Agreement. Except as explained below,

Administrator agrees to replace or repair parts listed in the Coverage

described below if those parts are worn beyond serviceable limits. When making

repairs, the repair center authorized by PWI will use components of the same

type and quality as those removed, which may include rebuilt, remanufactured,

recycled or nonoriginal manufacturers’ parts at the sole discretion of PWI. The

coverage you selected is shown on the front of this Agreement. Coverage applies

only to the parts listed under the coverage YOU selected, and to related labor.

The labor required to repair or replace 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.

On

06/03/14, [redacted] called in another claim, this time on the vehicle’s engine.

PWI sent an independent inspector to [redacted] where the vehicle was towed. The inspection

report determined failure of the cylinder heads. The cause of failure was long

term prior engine overheat causing damage to the engine. Unfortunately, the VSC

does not cover overheating.

Please

refer to the VSC:

THIS

SERVICE CONTRACT DOES NOT COVER

#8. Benefits for any breakdown caused

by contamination, overheating, lack

of coolant or lubricants, lack of oil viscosity, sludge or restricted oil flow.

Examples include but not limited to: engine and transmission.

We are

sorry we are unable to help [redacted] at this time and we hope this

satisfactorily explains our obligations.

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Review: [redacted]

I am rejecting this response because:PWI tried to used junk yard parts for the transmission . The repair shop had a argument with PWI about using junk yard parts and weren't going use them, finally they got dealerships parts for the transmission .now PWI saying that we drove this car overheated and we are the cause of the problem which is not true .we had nothing but problems with this car the car has been in the repair shop more then we drove it . Does that sound like we abused the car its in the repair shop all the time .PWI took a hit by paying 2100 dollars for the transmission they don't what to pay any more . When the thermostat went red my wife pulled over and got a towed to the repair shop . The only thing we are gulty is that we bought this car

Regards,

Business

Response:

Preferred

Warranties, Inc. (PWI) uses components of the same type and quality as those

removed when making repairs.

Please refer to the contract:

WHAT IS COVERED

BY THIS AGREEMENT

This

Agreement is not an insurance policy and, to be valid, must be purchased at the

same time as the vehicle covered by this Agreement. Except as explained below,

Administrator agrees to replace or repair parts listed in the Coverage

described below if those parts are worn beyond serviceable limits. When making

repairs, the repair center authorized by PWI will use components of the same

type and quality as those removed, which may include rebuilt, remanufactured,

recycled or nonoriginal manufacturers’ parts at the sole discretion of PWI. The

coverage you selected is shown on the front of this Agreement. Coverage applies

only to the parts listed under the coverage YOU selected, and to related labor.

The labor required to repair or replace 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.

The

independent inspection determined the cause of failure was long term prior

engine overheat causing damage to the engine. The Vehicle Service Contract does not cover

overheating.

Please

refer to the contract:

THIS

SERVICE CONTRACT DOES NOT COVER

#8. Benefits for any breakdown caused

by contamination, overheating, lack

of coolant or lubricants, lack of oil viscosity, sludge or restricted oil flow.

Examples include but not limited to: engine and transmission.

Should [redacted] have any questions regarding this claim,

please do not hesitate to contact our office at ###-###-####.

Worst company to deal with. They always find loopholes to get them out of paying for repairs. The claim adjusters are rude and untrustworthy.

Review: I took my covered vehicle ( 2007 [redacted]) into [redacted] in [redacted] ga on 7/15/2014 due to a leak in the rear of truck. Gave the service department all info on warranty. They did a diagnostic and discovered boot seal leaking. They called Preferred Warranties was told not under warranty because of boot seal. I called to discuss Preferred Warranties to discuss prior to authorizing [redacted] permission to repair. I was told the same thing,however according to my warranty item # 21 extra mile coverage covers seals and gaskets. The drive axle boot was leaking which caused the shaft to go bad and according to what I am reading this is covered. The gasket on the exhaust manifold leaked which should have also been covered.Desired Settlement: I would like to be reimbursed for these charges.

Business

Response:

Preferred Warranties, Inc. (PWI) would like to respond to [redacted]’ complaint # [redacted] on 07/31/2014.

On 07/17/14,

[redacted]’s diagnosis for [redacted]’ vehicle was failure of the right

rear axle at the boot and axle seal was leaking. Leaking

of the drive axle boot caused failure to the drive shaft. Neither item is a covered component under Plus

coverage in the Vehicle Service Contract (VSC).

The VSC is parts’ specific; therefore

parts not listed under the Plus coverage are not covered items.

Coverage on the drive shaft is dependent on

the reason for failure. When a covered part fails due to the failure of a

non-covered part (see item 37 below) the otherwise covered part would not be

eligible. In this case, the drive shaft failed because of a failure of the

drive axle boot which is a non-covered component.

Please refer to the VSC:

THIS

SERVICE CONTRACT DOES NOT COVER

#3.

Other normal maintenance

services and parts, including engine tune-up (includes spark plugs, glow plugs,

ignition wires, distributor cap and rotor), batteries, filters, lubricants or

fluids, air conditioning refrigerant, engine coolant, timing belt, all hoses

and belts, wiper blades, brake pads and shoes, brake rotors and drums,

suspension alignment, struts, constant

velocity boots, tires, wheel covers, wheel rims, wheels, wheel balancing,

shock absorbers, exhaust system, catalytic converter, pilot bearing and any

manual clutch components.

#37. For a breakdown of a covered part

resulting from the failure of a non-covered part.

[redacted] referred to item # 21 ABS - Electronic control processor,

wheel speed sensors, hydraulic pump/motor assembly, pressure modulator

valve/isolation dump valve/isolation dump valve, accumulator, seals and

gaskets. The seals and gaskets

section is specific to ABS under the Extra Mileage coverage. The Plus contract,

that [redacted] purchased, does not include #21.

We are sorry

we are unable to help [redacted] at this time and we hope this satisfactorily

explains our obligations. Should [redacted] need any assistance in the future, he may contact us as his contract is

still in good standing.

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Review: [redacted]

I am rejecting this response because:

In response to our phone call today I am responding to the answer provided by Preferred Warranties.

After filing the original complaint and reading the response I called P referred Warranties and [redacted] as a 3 way call (approx 3 weeks ago) . The beginning of the conversation I was speaking to a lady with Preferred Warranties. She told me that the boot was not covered on axial shaft and gasket not covered under leak. I asked her with paragraph 21 which they indicated I do not have but I do , why it would not pay as paragraph 21says EXTRA MILE COVERAGE seals and gaskets .

Review: Was sold this car warranty (extra miles) Preferred Warranties when I bought my used 2008 [redacted] in 5/21/2012. Price was $2550.00.Contract number [redacted]. Most recent was 2-11-14 at [redacted] repair [redacted] PA. Refused to cover the oil filter gasket housing and the intake valves needed carbon cleaning. But yet on the warranty brochure the dealer at Auto connection gave me when I bought the car, showed a lot of items that were supposed to be covered including gaskets but were not. I paid $266.75 out of pocket and could not afford to get the others repaired cost out of pocket would of been $1200.The car had issues again where I had to turn the car into the bank on May 23, 2014 because it needed repaired and I did not have the funds to have it diagnosed or repaired, from the history of trying to use the warranty to have anything covered, the warranty company denied it. Plus [redacted] labor charge was over $100 a hour and the warranty would only cover $60 and it didn't even cover the $60. They would not cover to diagnose the car issue.I called the warranty today and asked for a refund since I no longer have the car, they refused to refund the money.Desired Settlement: I would like a refund. The warranty was never used because every time I tried to use it, they denied the repair.

Business

Response:

We are responding to the complaint filed by [redacted]

regarding his Vehicle Service Contract (VSC).

On 02/10/2014,

[redacted] called Preferred Warranties, Inc. (PWI) with a diagnosis of [redacted]’s vehicle that the oil filter housing gasket needed to be replaced.

Please

refer to the VSC under the Powertrain Coverage, which is included under the

Extra Mile Coverage, which states the oil filter

housing gasket is not a covered component under the VSC:

POWERTRAIN COVERAGE

When POWERTRAIN Coverage is selected on the

front of this Agreement, only the parts listed in 1-4 are covered. Parts not

listed are not covered.

4. SEALS & GASKETS - Cylinder head

gasket and intake manifold gasket when leaking internally. All other seals and

gaskets are covered only if required in

conjunction with a covered repair.

**. [redacted] is requesting a refund on his Vehicle Service

Contract. Unfortunately after 30 days from the purchase date, the VSC is

nonrefundable.

Please see section under refunds.

REFUNDS

This Agreement may be cancelled for any

reason within 30 days of Purchase if no repair work has been performed or

commenced and the total amount paid for the contract will be refunded by the

Selling Dealer to the lienholder (if applicable). To cancel, submit to the

Selling Dealer listed above a written request for cancellation. The right to

refund is not transferable. Only the Selling Dealer is responsible to refund

the Price paid for this Agreement. More than 30 days after purchase, the

contract may be cancelled only by the lienholder in the event of repossession

or total loss if no repair work has been performed or commenced. Administrator

will retain a $35 cancellation fee plus an amount calculated pro rata based on

the months or mileage elapsed since Purchase, whichever is greater.

I trust this satisfactorily explains the terms of this

contract.

Respectfully,

Preferred Warranties, Inc.

Consumer

Response:

The warranty was sold to me when I bought the used car as covering everything 100% except tires, brakes normal wear items.

I could not even use this warranty until the [redacted] factory expired for the first 60,000 miles and [redacted] repaired over $5000.00 in repairs.

Why would I cancel a warranty within 30 days, when the car had the remainder of the [redacted] factory warranty.

Whether I receive my money back or not, this company needs investigated because their policies and what the car dealers say it will cover, it does not. When it comes time to needing it to pay a repair, the company denies everything from paying to Diagnosing the issue, as with the [redacted] its over $100 dollars to have them look at car.

I had to turn the car into the bank, because it needed repaired, I knew from before its several hundred dollars to even look at the car at the [redacted] dealership, the warranty wouldn't cover it.

Most factory warranties are not even $2550.00. I paid $2550.00 for a warranty that I never used because either [redacted] warranty paid for the repairs or this extra mile warranty denied.

Business

Response:

We are responding to [redacted]'s follow-up regarding his

Vehicle Service Contract (VSC).

By

**. [redacted] signing the Vehicle Service Contract, he accepted the terms of the

agreement on the contract and acknowledged that he has read the agreement.

Please

see the attached copy of the VSC signed by [redacted].

Respectfully,

Preferred Warranties, Inc.

Review: I purchased the PLUS extended protection plan for my pre-owned vehicle I purchased on 2/7/2014. The vehicle in reference is a 2006 [redacted]. While driving the vehicle, the engine overheating light came on, I stopped the vehicle immediately and contacted Preferred Warranties Inc. (PWI) regarding the issue. The repair technician identified the mechanical issue as the engine overheating and failure of the valve adjusters in the engine cylinder head. The cylinder head and valve adjusters are components covered under the PLUS extended protection plan. PWI sent out an inspector to review the vehicle at the repair center and followed up with an email to me stating they would not cover the parts and service due to lack of maintenance which caused oil sludge and the failure of the engine was caused by the oil sludge.

[redacted] has provided the maintenance records for the vehicle which shows the car has been serviced according to manufacturer recommendations. This further proves the vehicle has not been neglected from a maintenance standpoint. the vehicle was covered under [redacted]'s maintenance warranty up through 50,000 miles. When I purchased the vehicle the odometer reading was at 59,140 miles. [redacted] manufacturer recommends oil changes every 15,000 miles.

My complaint is PWI's reason for not adhering to their PLUS extended service warranty of lack of maintenance is not true and the engine failure is due to the failure of components covered by their warranty. The cause of the failure is due to the engine overheating due to the water pump and thermostat failure which caused damage to the cylinder head (all parts/service covered by PWI) - this was the stated and written cause by the certified ASE repair technician. PWI acknowledged and covers the repair and parts cost of the thermostat and water pump. PWI needs to repair the cylinder head as well.Desired Settlement: Adhere to the service warranty and repair the vehicle by replacing the complete cylinder head.

Business

Response:

Preferred Warranties, Inc. has been in contact with [redacted] and a settlement has been made. [redacted] has signed a release agreement stating the matter has been resolved to her satisfaction.

Consumer

Response:

[A default letter is provided here which indicates your acceptance of the business's response. If you wish, you may update it before sending it.]

I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me.

Regards,

Review: The engine on my truck blew. It had 116,000 miles on it. The waranty company said they found an engine with 50,000 miles on it, which I later learned actually had 103,000 miles on it. The new engine had problems from day one. Some of which they were not willing to cover. The asociate I had spoken to denies the fact he told me it had only 50,000 miles on it. If he said it had 103,000, I would have said no way and found a better engine. I fully understand their policy of as good or better parts. When I have to dish out $600 of my own money, I want the best possible parts and service. Instead, I was decieved by an adjuster named [redacted]. He claimed his supervisor would give me a call about the matter. It has been 2 weeks and still no call.Desired Settlement: For being defrauded and later blown off, I would like a brand new engine installed with all cost covered by preferred warranties inc.

Business

Response:

In response to [redacted]’s complaint #[redacted] filed on

03/26/2013 and his desired settlement for replacement of a brand new engine, I

have outlined Preferred Warranties, Inc. (PWI) contract policy for

covered/non-covered components.

Review: I purchased a warranty from Preferred Warranties on June 17th 2013. I never used the warranty and asked for a prorated refund and they denied giving me back any of the money. I have traded the car.

Business

Response:

We are responding to the complaint filed by [redacted]

[redacted] regarding her Vehicle Service Contract (VSC).

**. [redacted] is requesting a prorated refund on her Vehicle

Service Contract. Unfortunately after 30 days from the purchase date, the VSC

is nonrefundable.

Please see section under refunds.

REFUNDS

This Agreement may be cancelled for any reason within 30 days of

Purchase if no repair work has been performed or commenced and the total amount

paid for the contract will be refunded by the Selling Dealer to the lienholder

(if applicable). To cancel, submit to the Selling Dealer listed above a written

request for cancellation. The right to refund is not transferable. Only the

Selling Dealer is responsible to refund the Price paid for this Agreement. More

than 30 days after purchase, the contract may be cancelled only by the

lienholder in the event of repossession or total loss if no repair work has

been performed or commenced. Administrator will retain a $35 cancellation fee

plus an amount calculated pro rata based on the months or mileage elapsed since

Purchase, whichever is greater.

I trust this satisfactorily explains the terms of this

contract.

Respectfully,

Preferred Warranties, Inc.

Review: On or about October 18, 2013, I purchased a used 2006 Dodge Ram 1500 SLT 4X4 Quad Cab from [redacted]'s Auto Sales in [redacted], VA. Provided with my "certified" used vehicle was a 3-month/5,000 mile extended warranty from Preferred. About three (3) weeks after purchase the paperwork/warranty card arrived in the mail and all was well.

At approximately 8 AM on Monday, December 2, 2013, I was nearing the end of my 1/2-hour morning commute and the brakes began to drag. After a little less than a mile they had almost seized completely and all four wheels were smoking. I was able to nurse the vehicle to my place of business and began the process of trying to get my vehicle towed, looked at and hopefully repaired. When I contacted Preferred via telephone I was informed that I could take my vehicle to the repair facility of my choice, but that they would only pay up to the "average" labor rate in the area. That was item one (1) which was never explained to me when I was provided the policy. I do not know where they came up with their number ($75/hr), but the first three places I called quoted me labor rates of $125, $113 and $105. So I called Preferred back and they said that in my area (a metropolitan region with HUNDREDS of automobile dealers and repair garages) they had FIVE that were within the 25 mile maximum towing distance from my location. That is item two (2).

So I contacted the one nearest to me and arranged for the vehicle to be towed (as a brake issue is a serious safety concern) and around midday the shop contacted me and told me that the brake fluid had been fouled somehow and that the master cylinder had been compromised as a result and would need to be replaced. Preferred denied the warranty claim citing that fluid causing compromised components was not covered. That is the item with which I take the greatest issue. It does not matter how the component became damaged or compromised. The warranty I have does not say "Brake parts covered IF". It says brake parts covered. The "trusted" service center which THEY recommended diagnosed my vehicle and determined that the master cylinder had been compromised. If it was by "bad" fluid, I hardly see how that is my fault, as I have done no work to this vehicle in the short time which I have owned it.

After further deliberation and attempted discussion for an amicable resolution with the CSR via telephone I determined that they were not going to satisfy my claim. As I desperately need to have access to my vehicle I am forced, at this time, to pay for the repair services out-of-pocket. The repair facility has approximated this will cost in the neighborhood of $600.

The vehicle was taken to [redacted] Auto Services, Inc. located at [redacted] in [redacted]. My contract number is [redacted].Desired Settlement: 1) More comprehensive explanation of warranty benefits.

2) A review (and update) of their "average" rate calculation for the [redacted] metropolitan area.

3) Payment/Refund/Reimbursement of my repair cost(s) under warranty.

Business

Response:

Preferred Warranties, Inc. (PWI) would like to respond to **. [redacted]’s complaint # [redacted] on 12/03/2013.

Review: In January 2013, my husband and I purchased a truck from [redacted] in [redacted] NC. At the time we purchased the vehicle, we were offered a warranty with Preferred Warranties. We were offered a 4 year warranty for $2440 and also a 1 year warranty for $1100. I spoke with someone from Preferred Warranties while I was at the dealership purchasing the vehicle and he advised me that at the end of the year I could call into Preferred Warranties and they would extend the warranty. Now, they are claiming that they are unable to do so.Desired Settlement: I would like for the company to honor what they promised when the product was purchased which is the option for me to extend the warranty period.

Business

Response:

Preferred Warranties, Inc. (PWI) would like to respond to

the complaint filed by **. [redacted] on 12/11/13. In this complaint **. [redacted] is

requesting an extension of her Vehicle Service Contract purchased on 12/19/12

from [redacted] in [redacted], NC.

PWI has been in contact with **. [redacted] and it has

been explained to her that we are unable to extend her warranty. There is no language in the contract stating

that an extension of her warranty is available.

The contract does not require us to do so; therefore it is our option

not to renew.

Preferred Warranties has fully

complied with our contractual responsibilities and has been able to assist **.

[redacted] in numerous clai** totaling $9,079.55. PWI has informed **.

[redacted] that her contract expires 12/19/13.

I hope I have satisfactorily explained the reason why

the renewal is not available. I have also

attached a copy of contract for further review.

Review: I purchased the "extra mile" warranty for $1900 when I bought my truck on 6/11/11. This was presented to me as a "safety belt" for my wallet, and a peace-of-mind for my used vehicle should any unexpected repairs arise. I know I should of done my homework, but when I saw the; rated "A+" by the Revdex.com, statement in the customer select coverage handout I was falsely assured it was a good investment. I have noticed through the past years that they have since revised that statement probably due to the previous complaints, and honestly I was happy my truck was doing good and I didnt need them. My father had bought a vehicle and also got this coverage, when he needed repairs and was told "its not covered" I was mad for him but luckily he still had the factory warranty to get his repairs (its nice to know they held up to there side of the agreement). I recently needed some repairs to my truck which included; front impact sensor, passenger side sway pin, serpentine belt and battery. I of course read clearly that the belt and battery are not covered so I gladly had them replaced and paid with no problem, but then there is the sensor and sway pin. I did read through the customer select coverage and saw electrical/ high tech section and proceeded to try and find that sensor for coverage, and did the same for the sway pin in the steering section. Not being to sure if they were covered I had called to find more info, after being told to take it to get looked at I was assured it would most likely be covered but the service center would have to accurately diagnose it and then contact Preferred Warranties to make a claim. I was not able to take the vehicle in to get looked at right away so a couple weeks went by and I had made the time to get the proccess started. I made a call to customer service once again to see what I needed to do, the agent was very nice and when she told me that the dealership that I bought it from was backed up a couple weeks she recommended another. I dropped off my vehicle that afternoon to be worked on first thing the next day. I received a phone call from the service center and was told the issues, which I was aware when I took it, they had told me that nothing was covered. I was mad at the situation and the false assurance of this "safety belt for my wallet", that this extra mile warranty is not good. I feel taken advantage of and now beside the $1900 warranty charge, I am out the money I just paid to get my truck repaired. I do not blame the service company at all, they were great. I blame [redacted] car company for offering this false warranty and Preferred Warranties for the false "A+" Revdex.com rating stated in the handout which is misleading and the false assurance given by customer service of coverage then having the service company be the bearer of bad news of not being covered. I have the feeling that even if it was covered under this warranty they would find some creative reason like not following a precise procedure or some loop hole their lawyers wrote in the policy to get out of honoring a claim.Desired Settlement: I have coverage until 6/2015, I will not hit the 80,000 mile mark before then I take pride in keeping low mileage. I would like my policy cancelled and a refund of the service contract $1900.00. This is a small amount to probably what it is now with interest since it was added in the financing of the truck.

Business

Response:

*Dec. 19, 2014 – My 2005 Mazda Tribute (truck) began to show signs of a problem.
*Dec. 20, 2014 – I called Preferred Warranties Inc. (800-548-1121) and they referred me to Quality Auto, 150 Bloomfield Ave., Bloomfield, NJ (973-743-7400)
*Dec. 20, 2014 - Preferred Warranties Inc. had my truck towed to Quality Auto. Called Quality Auto and was told they would look at the truck and call me Monday (Dec. 22, 2014)
*Dec. 26, 2014 – Quality Auto called to say the transmission is “gone” and that I need new tires. I was told the reason the transmission died was because the truck had the wrong size tires and they would call Preferred Warranties Inc. to get approval for the repair.
*Dec. 29, 2014 – Per Quality Auto, Preferred Warranties Inc. finally approved the repair. Quality Auto then informed me that it wasn’t the transmission that needed replacement but instead a part called the transponder and that they could charge Preferred Warranties Inc. for the transmission and give me the new transponder and 4 new tires. I declined to be part of fraud and insisted the transaction be processed properly.
At least 15 phone calls were made to Quality Auto between 1/3/2015 and 1/9/2015 for information on the repair and when it would be ready and problems that occurred.
*Quality Auto insisted I needed new tires or my warranty would be void. New tires were purchase for this reason.
* Went to pick up the truck on 1/7/2015 after speaking with Quality Auto and being told the truck was ready (I was told they would do a test drive to be sure it was ok). When I arrived the truck wasn’t ready and an hour later was told the security system crashed because the battery was disconnected in order for them to work on the truck. They charged me an additional $350 to get new keys and reprogram the security system. The keyless entry does not work the same as before. The distance between the truck and the module is now about 25 feet shorter. On 2/10/2015 I spoke with Dave at Mazda, Lodi, in the repairs department, and he told me that first the security system would have cost $285 if no other repairs were being made and second that it doesn’t sound legitimate that the system crashed for the reason given.
*On Thursday, 1/8/2015 we picked up the truck after 5 pm and it immediately started to ‘chug’ when we were driving home and the engine light came on. Quality Auto said the truck had been taken for a test drive and was running great.
*Saturday, 1/10/2015 I brought the truck to a different mechanic because I didn’t trust Quality Auto with it again. They had held it for 20 days and it still wasn’t running right. I was told the tire size had nothing to do with the transponder, the air hose was disconnected and the plug to hold it in place broken. This was fixed and an appointment was made to check the truck for the next Saturday.
*Saturday, 1/17/2015 I was told the purge valve was broken and there was glue residue showing someone tried to glue it back together. I had the repair done without contacting Preferred Warrantys Inc. because of my experience with Quality Auto whom they had referred me to.
*Friday, 7/24/15 I contacted Preferred Warranties for another auto repair and was informed that the warranty only covered $189 of over $1,300 in repairs.
I would NEVER recomend this company to anyone.
I realize that Quality Auto did the damage, but I was referred to them by Preferred Warranties and when I was in contact with them this was something they wouldn't admit.