Extended Warranty has refused to pay for tranny
Senior Member
Joined: Apr 2005
Posts: 116
Likes: 0
From: Olympia, WA
You may want to check with the state attorney general or insurance commissioner. In Washington, extended warranties are legally life insurance policies, and there are specific requirements on the insurer on how they are to respond to claims, etc. Make sure they are following the letter of the law in your state before you give up on trying to make them honor your claim.
Thread Starter
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Member
Joined: Aug 2004
Posts: 12
Likes: 0
From: Houston
Bluegrass,
I agree that the dealer is not totally to blame, however, when I purchased this truck they strongly encourage the purchase of this warranty and after having my truck serviced there numerous times they never mentioned that the tires might be a problem. I was able to drive it to the dealer told them I had a transmisson problem and agin the tires were never mentioned. Two days after dropping off the vehicle they called to say an adjuster would need to approve the claim, they felt sure that this would not be a problem and apologized that he could not get to the dealership for several more days.
Even after the claim was denied the service advisor and mechanic who worked on the truck both agreed that this was most likely not caused by the size of the tires.
My problem with the dealer was that after encouraging the purchase of this warranty they would not work with me to lower the price of their labor, $2,500 of the $3,300 total cost. Labor is a fixed cost for the dealer and somewhere that a retail business should be willing to negotiate if they would like to have my business in the future.
I think the smart business practice would have been to negotiate a lower labor cost, say $1,500 instead of $2,500. This $1,000 would have been more than made up with future purchases and service. As I said before, I have purchased 3 vehicles in the past 4 years all costing $30,000 or more and always have my vehicles serviced at their dealership.
Now I will no longer consider doing business with a dealer 3 miles from my house. They only got the $510 dollars instead of additional money this and future service would cost, simply because they were not willing to work with me and find a compromise we could both live with.
I agree that the dealer is not totally to blame, however, when I purchased this truck they strongly encourage the purchase of this warranty and after having my truck serviced there numerous times they never mentioned that the tires might be a problem. I was able to drive it to the dealer told them I had a transmisson problem and agin the tires were never mentioned. Two days after dropping off the vehicle they called to say an adjuster would need to approve the claim, they felt sure that this would not be a problem and apologized that he could not get to the dealership for several more days.
Even after the claim was denied the service advisor and mechanic who worked on the truck both agreed that this was most likely not caused by the size of the tires.
My problem with the dealer was that after encouraging the purchase of this warranty they would not work with me to lower the price of their labor, $2,500 of the $3,300 total cost. Labor is a fixed cost for the dealer and somewhere that a retail business should be willing to negotiate if they would like to have my business in the future.
I think the smart business practice would have been to negotiate a lower labor cost, say $1,500 instead of $2,500. This $1,000 would have been more than made up with future purchases and service. As I said before, I have purchased 3 vehicles in the past 4 years all costing $30,000 or more and always have my vehicles serviced at their dealership.
Now I will no longer consider doing business with a dealer 3 miles from my house. They only got the $510 dollars instead of additional money this and future service would cost, simply because they were not willing to work with me and find a compromise we could both live with.
Last edited by chalkie; Oct 11, 2006 at 04:14 AM.