ComplaintsforPreferred Warranties Inc

• Initial Complaint

  03/24/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I thought I purchased an extended warranty for my car I purchased in 2019. I am still paying for the warranty as the cost of this so called extended warranty was worked into my car payments, $60.00 more per Month over a 5 year period. Needless say, thats not the case. Although, I am still paying my premiums, I was told the warranty expired Mar 2022. I asked how can I be paying for insurance thats expired, the company told me thats how it works. I never heard of this and furthermore, I would not have purchased such a policy. I am still paying the $60.00 thats tacked onto my car payment and no warranty for the repairs but Im still paying the premium. There ought to be a law against scamming innocent customers. Its absurd that I cannot purchase a car in the Untied States without getting scammed by the man on some level. The only reason I opted to buy into this scam policy was I saw the Better Business Bureau had endorsed this and I thought it was legitimate. I was wrong. Also, Id like to add that the policy phamplet states all repairs must be done at a dealership so when my check engine light came on I took my car to the ********** dealership, had the diagnostic done and thought whatever the problem was, it would be covered but thats when I was told the insurance had expired. This seems to be a scam that the dealers are in on as well. Idk that for sure. All I know is I am paying for an insurance policy thats expired and this definitely should be against the law. Please help!

  Business response

  03/28/2023

  Preferred Warranties, Inc. (PWI) is in receipt of ************************* complaint #********.
  
  We are sorry to hear about the inconveniences that *********************** has experienced with her vehicle and are sorry that she was led to believe that the service contract was longer than she thought. On the first page of the service contract that *********************** had purchased it states that the contract expires by time measured from the ******************* Date, which is 03/16/2015, or by mileage measured from zero (0) odometer miles, whichever occurs first. It also states on the front page of the contract that the service contract expires at ******* miles or 03/15/2022, whichever comes first.
  
  Please know that financing of the vehicle service contract is discussed with the selling dealer and PWI is not involved in the financing.
  
  In the service contract on page 5, it states that you may recommend a repair facility and PWI will make every reasonable effort to honor your request.
  
  I have included a copy of the Service Contract for reference.
  
  Please let us know if you have any additional questions.

  Customer response

  04/06/2023

  [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 as Answered]  
  
   Complaint: ********
  
  I am rejecting this response because:
  
  
  Regards,
  
  *************************

  
  

  I am not satisfied with PWI reply.  I dndt sign a contract that states I agree to what the limitations of what I was told was an extended warranty.  My **** payment is higher for all of my duration until I finish paying for the vehicle .  I was told that the warranty would be effective until I finish paying for my car thats why my car payments increased.  This is my plight.  I dont understand how I am still paying for an expired extended warranty.  If this Mom and Pop Dealership is offering bogus so called extended warrantys to inspecting customers then not adhering to it, thats fraud in *****************.  Idk how many older customers have been scammed like this but I do know what I was told.  They have no proof, no signature as to me agreeing to the terms that I was not made aware of until I had a Claim.  Now ** told about these terms that was not explained to me in the way PWI is explaining it to me now, after the fact.  They should at least pay half of the cost of my repair.  I dont work for the Dealership or PWI insurance Company, I just know what I was told at the time I purchased my vehicle.  This is insane and totally unacceptable.  They have nothing to prove that I was told what they are now saying which is my signature.  Please, help me as I have until **** to finish paying my car payments which includes the extended warranty ins premium worked in.  Please help me.

  
  

  Thank you, *****
  
  
  
  
  
  
  
  
  

  Business response

  05/04/2023

  Preferred Warranties, Inc. (PWI) is in receipt of ************************* rejection to our response.
  
  We apologize if this information was given to *********************** when the service contract was purchased.But the terms of the service contract that *********************** had purchased cannot be changed. It states that the contract expires by time measured from the ******************* Date, which is 03/16/2015, or by mileage measured from zero (0) odometer miles, whichever occurs first. It also states on the front page of the contract that the service contract expires at ******* miles or 03/15/2022, whichever comes first.
  
  Again,please know that financing of the vehicle service contract is discussed with the selling dealer and PWI is not involved in the financing.
  
  Please let us know if you have any additional questions. 

• Initial Complaint

  03/14/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I purchased a 6 month, 7,000mi. Warranty From an approved PWI dealer; for a 2017 **** ******, which I purchased on 3/4/23. I was told by the dealer that the warranty covered the engine, drive train, transmission, etc from the time it left his lot. I went to purchase that car in part because I could get the warrant ; in case anything happened to the car. After approx. 250 miles the car would not start & had to be towed. The **** dealer it was towed to diagnosed the problem and submitted the claim to PWI. Claim# ****** was initiated, but was subsequently denied by PWI. They claim it was a preexisting condition and therefore not covered by their warranty. After several days and contacting multiple people at PWI they are still refusing to honor the warranty I purchased in good faith from their authorized warranty agent.

  Business response

  03/28/2023

  
  Preferred Warranties, Inc. (PWI) is in receipt of **. ***** complaint #******** dated 03/15/2023.
  
  On or about 03/07/2023 a claim was called into PWI with the complaint that the engine was running rough in **. ***** vehicle. The repair facility, ********************************, stated that there was a crack between cylinders 3 & 4 of the engine.
  
  This finding is consistent with a failure that occurred prior to the purchase date of the service contract. **. ***** claim was denied by PWI because the claim requested coverage for repairs and/or replacements associated with a failure which existed on the vehicle at the time the vehicle was purchased. The service contract expressly states that repairs for failures which existed at or prior to the purchase date are not covered under the provisions of the service contract (see Paragraph A.5. on page four under the heading This Contract Does Not Cover).
  
  Based on the above information, we are unable to assist with the requested repairs to *** ***** vehicle.
  
  Attached is a copy of **. ***** Service Contract. We appreciate your consideration and hope this explains the situation.
  
  Please feel free to contact PWI if ************ has any further questions.

• Initial Complaint

  02/14/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  On 2/3/23 i brought my truck to the shop they directed me to go, the owner/mechanic confirmed my engine knock, truck was still under warranty, Preferred warrant **** subcontracted an adjustor to go and listen to the truck, the person is not a mechanic and reported to my warranty company that there was no issue. I had to pay 255 dollars for the diagnostic. I paid **** dollars for the warranty. I picked up my truck and still engine knocking after having oil changed again as requested from PWI. Wrote a review to PWI and received an automated response about calling them about the issue, They put me on hold and never answered or responded. I see many complaints about these issues from their customers as well as the same automated response they use.

  Business response

  03/03/2023

  
  Preferred Warranties, Inc.(PWI) is in receipt of Mr. ********* complaint # ********.
  
  Hopefully,this letter will help to better explain the circumstances surrounding Mr.********* ************
  
  Please know that PWI provides coverage for mechanical failures or breakdowns. 
  
  On February 2, 2023, ******************** called into PWI regarding a knocking noise heard coming from the vehicle.   
  
  On February 10, 2023, an independent inspection performed by **** Appraisals, discovered there was no mechanical failure demonstrated at the time of the inspection.
  
  Please see page two under Important Terms for definition of Failure.
  
  Based on the above information, we are unable to assist with the requested repairs to Mr. ********* vehicle because there was no mechanical failure. We hope this helps to better clarify the situation.  

  Attached are ************************ Service Contract and Inspection Report for reference. 
  
  Please know that Mr. ********* Service Contract has expired by time as of February 3,2023.
  
  Please feel free to contact PWI if ******************** has any further questions.

  Customer response

  03/23/2023

  [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 as Answered]
  
   Complaint: ********
  
  I am rejecting this response because: My engine has a mechanical failure ( Engine Knock) and PWI hired a third party adjuster that they pay to deny the claim, he is not a mechanic and further more I took my truck to CC fabricators that PWI sent me to, he heard and acknowledged, the engine knock, said i needed an engine, but I believe he is also paid to deny repairs. so I am now stuck with my truck until the engine fails, and it will be soon, I am a certified gas and diesel mechanic of 42 years. at this point I think PWI should return the **** dollars to me and I will repair it myself if they will not.
  
  
  Regards,
  
  ***************************
  
  
  
  
  
  
  
  
  

  Business response

  04/26/2023

  Please know that PWI uses third party, independent inspectors that are in no way affiliated with PWI.  

  As reiterated, the independent inspection performed by **** Appraisals, discovered there was no mechanical failure demonstrated at the time of the inspection.
  
  Based on the above information, we are unable to assist with the requested repairs to Mr. ********* vehicle because there was no mechanical failure. 
  
  PWI is unable to return the funds for the service contract because Mr. ********* ******* Contract has expired by time as of February 3, 2023. 

  We hope this helps to better clarify the situation.  

• Initial Complaint

  01/30/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  Slimy warranty company. Purchased my car on December 24th and had to put it in the shop on January 20th. Even though it SHOULD be covered under warranty they dragged their feet went to selling dealership to get a check just to tell me that they wouldn’t cover the repairs the day AFTER the 30 day period expired. Now they think they can keep my money and not pay for covered repairs that their contract clearly states that they cover. They have changed their reason numerous times from a bolt was missing well duh the driveshaft broke. Well it wasn’t repaired right uh it’s never been serviced for that we have all the records oh well the selling dealership did it ig no they didn’t their not a repair facility oh well the subframe has been replace uh no it hasn’t it not in the car fax and it’s always been maintained by *** and only 40,000 miles oh we just are going to approve it and sorry you can’t get a refund it’s been 30 days even though you filed the claim on the 20th.

  Business response

  03/06/2023

  
  Preferred Warranties, Inc.(PWI) is in receipt of ******************** complaint #  ********.
  
  We are sorry to hear about the inconveniences that ****************** experienced with his vehicle. We understand his frustrations and the problems it had caused while waiting for his vehicle to be repaired.
  
  PWI received a call from *** on or about 1/25/2023, stating that there were missing bolts but no mechanical failure. Please know that PWI provides coverage for mechanical failures or breakdowns.  Please see page two under Important Terms for definition of Failure.
  
  On or about 1/27/2023, an independent inspection confirmed miss bolt. While this is not a covered repair,PWI has amicably decided to make an exception and authorized repairs needed to the differential axle shaft. In addition, the repair facility then discovers that the vehicle needs a transfer case. As of 3/6/2023, PWI sent payment towards repairs to the repair facility for the transfer case. We await the repair facility to complete the repairs.
  
  I have included a copy of the Service Contract and inspection report for reference.
  
  We realize this is an unfortunate occurrence, but we are diligently working with the repair facility to reach a conclusion.
  
  Please let us know if we can be of further assistance in those efforts or if you have any additional questions.

• Initial Complaint

  12/17/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  Date of transaction 12/15/22 Initially paid $2,390 for the warranty. Paid $1,140.72 for the cost of repairs. The mechanic (********** ****) called PWI and they claimed the oil cooler was covered with the warranty. After the mechanic fixed it they called back and PWI said that it was not covered. If I knew that the part was not covered under the warranty I would have had my family fix it for much cheaper. PWI has not tried to do anything about it but they are aware of what happened.

  Business response

  01/03/2023

  
  Preferred Warranties, Inc. (PWI) would like to respond to ****** ******* complaint # ********.
  
  On or about November 3, 2022, **** from ********** **** ****** ******* called into PWI stating that the oil cooler was cracked and was pumping oil into cooling system and that there was an oil intermix failure caused by a cracked oil cooler.
  
  Please know that on the top of page four, the Service Contract states that only parts that are internally lubricated parts listed in 1-24 are covered. Parts not listed are not covered under the Service Contract. Since the oil cooler is not a listed item for coverage, it is not covered under the Service Contract.
  
  *** *******’s Service Contract was purchased on or about December 22, 2020.
  
  Regarding the request for a refund for the Service Contract, please know that under ‘Cancellations and Refunds’ on page seven of the Service Contract specifically states that the 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. Any time after the 30 days, the Service Contract is nonrefundable. Since *** *******’s Service Contract cancelation request was after the 30-day window, the Service Contract is not eligible for a refund.
  
  Based on the above information, we are unable to assist with the requested repairs to *** ********s vehicle. We hope this helps to better clarify the situation. 
  
  Attached is a copy of the Service Contract *** ******* purchased. Please feel free to contact PWI if *** ******* has any further questions.

  Customer response

  01/03/2023

  [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 as Answered]
  
   Complaint: ********
  
  I am rejecting this response because: I know that the part was not covered by the warranty. PWI told the mechanic that the part was covered and then called and told them it was not. This caused me to have to pay for labor that I would not have had them do. I would have had someone cheaper work on it. If a full refund is not possible I would like for the labor portion to be refunded.
  
  Regards,
  
  ****** *******
  

• Initial Complaint

  10/27/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  The ***** ****** ****** sold me a lemon vehicle (Virginia law states that a vehicle that becomes inoperable within two years of purchase is legally defined as a lemon). The engine has completely failed. The business refuses to assist me with a refund or repairs. I bought a *** from the ***** ****** ****** on 11/6/2020. I was told by the salesman that I bought a “Bumper to bumper warranty” for 96 months or 120,000 miles. I paid $3100.00 for that. The first page or summary shows all these. The engine has failed. *** has given a $23000 estimate. *** representative *** ******* (###-###-####) contacted the ***** ****** ****** and the PWI warranty company with ***** ****** ****** ***** ********* ***** ***, Triangle, VA *****- **** ###-###-#### If you have any questions or concerns, please contact the BBB assigned to your complaint: BBB serving Metro Washington DC, Metro Philadelphia & Eastern Pennsylvania 1411 K St. NW, 10th Floor Washington, DC 20005-3404 ###-###-#### diagnoses and estimates. After 8-10 days, PWI offered to fix ###-###-#### diagnoses and estimates. After 8-10 days, PWI offered to fix the oil and antifreeze components verbally (no written doc),. I don't understand because the engine is not working. I contacted PWI several times, but after 30 minutes of holding, I got a message that they will contact me. but no one contacted me. The manager was not available to talk. After calling several times, the Manager told me that they can not cover this warranty. The car is parked in front of my house. I had to pay for diagnoses and towing of the vehicle. Neither ***** ****** ****** nor the company they use for warranty purposes is assisting with the lemon. I would like a refund or repairs, as appropriate.

  Business response

  11/21/2022

  Preferred Warranties, Inc. (PWI) would like to respond to ************************* complaint # ********.
  
  On September 27, 2022, an independent inspector, *******************, inspected ***************’s vehicle based on a claim that was submitted to PWI on or about August 31, 2022. The inspection revealed there was a major leak at the oil filter housing/cooler assembly. The crank case and the cooling system were full of intermix and the levels could not be determined. And there was intermix coming out of the intercooler and the turbo intake pipe as well.
  
  Please know that item #B11 on page six under This Contract Does Not Cover the service contract specifically excludes coverage on failures or needed repairs caused by lack of coolant, lubricant, or lack of oil viscosity.
  
  Based on the above information, we are unable to assist with the requested repairs to ***************'s vehicle. We hope this helps to better clarify the situation. 
  
  Attached is a copy of the Service Contract **************** purchased and a copy of the inspection report.
  
  Please feel free to contact PWI if **************** has any further questions.

• Initial Complaint

  10/03/2022

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  Purchased the extended warranty from ******************. Was told I could cancel at any time and would receive a refund for the difference. Have had vehicle 18 months went to trade in and they are saying I don't get a refund of any of it. Paid 3450 for the warranty so basically eating 2700. Never filed a claim or used it. Only reason I said ok to the extended warranty was because they said I would receive a refund on it. I would not recommend their service/definitely go with a different company.

  Business response

  10/06/2022

  
  Preferred Warranties, Inc. (PWI) is in receipt of Ms. *****************'s complaint # ********.
  
  **. ******'s Service Contract was purchased on or about March 5, 2021. Regarding the request for a refund for the Service Contract, please know that under Cancellations and Refunds section on page seven of the Service Contract specifically states that the 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. Any time after the 30 days, the Service Contract is nonrefundable. Since ****************'s Service Contract cancelation request was after the 30-day window, the Service Contract is not eligible for a refund.
  
  Attached is a copy of the Service Contract ************** purchased. We understand **. ******'s frustration if she did not know the terms of the Service Contract but since the request was received after 30 days after the purchase date, the Service Contract is not eligible for a refund. We appreciate your consideration and hope this helps bring an agreeable conclusion to this matter.

• Initial Complaint

  09/09/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  First I’m going to say this is as much a repair shop complaint as a warranty issue. I’m addressing ***** ******* ********* in a separate complaint. I had my car for 2 years and purchased the warranty with the car. My engine light came on in April repair shop claimed routine maintenance needed and I paid everything out of my own pocket. Engine light came on again 2 weeks later told nothing to worry about just needed to be reset. June 26, a weekend that warranty company is closed, my same light for traction service came on again and then engine overheated. By the time air conditioner kicked off due to overheating and I stopped the car 2 head gaskets had blown. My warranty paid a little over half of the repair and repair shop kept my car from June 27-August 3. 3-4 weeks later service light for traction came on again pulling in my carport ac kicks off. Had car towed to same shop since repairs were less than 30 days old and one gasket blew. Repair shop wants another 2k to fix it. Warranty won’t pay. I’m certainly not paying. I feel as though the warranty people should know enough to realize that the original issue hasn’t been addressed. Repair shop says gaskets don’t fail (warped ones do). But they can’t say what’s wrong without the 2k gasket repair that warranty is refusing to cover any part of. So I’m the one left holding the bag while the repair I paid for and the warranty I purchased are absolutely useless.

  Business response

  09/23/2022

  
  Preferred Warranties, Inc. (PWI) is in receipt of **. ********** complaint # ******** dated 09/19/2022.
  
  On or about 06/27/2022, PWI approved replacement of the head gaskets in **. ********** vehicle which carries a 2 year/unlimited miles warranty with the manufacturer, *************.
  
  PWI is unable to assist with the repairs needed due to item # A.26 on page five under “This Service Contract does not Cover” section of the Service Contract. that states the contract does not cover repairs or replacements covered by any warranty of the manufacturer. 
  
  We understand **. ********** frustrations but since the head gaskets are covered under the ************* 2-year warranty, ********************** would need to return to a ************* dealer to address the concerns.
  
  If there are additional repairs needed that are not associated with head gaskets and are covered under the terms of the Service Contract, PWI would be more than happy to assist with those repairs.
  
  Attached is a copy of the Service Contract ********************** purchased. We appreciate your consideration and hope this helps bring an agreeable conclusion to this matter.

  Customer response

  10/03/2022

  [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 as Answered]
  
   Complaint: ********
  
  I am rejecting this response because:
  
  ****************************************** claims that they attempted to get permission for other repairs instead my warranty company refused. The premise of my refusal is that after doing some research of my own it was brought to my attention that the ***** has an aluminum engine. Once it overheats the engine is ruined.

  
  

  This is a portion of the car dealerships response:

  
  

  ******************************* brought her 2014 ********* ****** in for the first visit here on 4-20-22 .On 6-27-22 she returned with a complaint turn ac of and let engine idle, temp gauge was climbing high. We found coolant low, pressure tested system @25 psi for 2 hours. preformed combustion gas test and failed test found hydrocarbons in coolant system  due to blown head gasket, possible possible warped or cracked head. The after market extended warranty purchased by ********************** would only cover the replacement of the head gasket and not all the cost of that. We replaced the head gasket, seals, bolts oil filter and filled with coolant. Vehicle was returned to customer on  8-03-22. On 8-15 the vehicle returned with a engine light was the only complaint. We found a history code set for throttle performance. We relearned idle parameters and cleared codes. There was no charge. On 8-22-22 vehicle returned the customer complaint was car is over heating and the air condition started blowing hot air. We pressure tested and found coolant in cylinder 1 336 miles after changing head gasket gasket. We advised customer that head gasket failed due to another overheating incident. over heating cause cannot be determined until head gasket is repaired again, pressure bleeds off into cylinder1 and fills with coolant. Quoted customer head gasket replacement to move forward, customer declined at this time. We also contacted the extended warranty and asked for coverage and they declined. We also asked if they would give any coverage at all being the vehicle could possibly need a engine or head as we previously state in first head gasket replacement. They declined because they want us to warranty the head gasket that they approved partially previously. The vehicle has never show any signs of coolant leaks while here. As of now there is no way to test for a coolant leak because the system will not hold pressure. Changing the head gasket would allow us to pressure the system to check for coolant leaks. If no leaks would be found after this repair we would be lead to believe that the head is possibly cracked or warped as stated in first repair. My recommendation would be to replace the head and gasket at this time then retest. The dealer ship would be willing to do this at a very discounted rate for customer satisfaction. We can not warranty the repair from what I can see, we noted that the head was possibly cracked on the first repair/ there is possibly a coolant leak that caused the second gasket to blow. From our experience head gaskets blow from over heating events and the part just does not fail on its own. 

  
  

  As you can see each blames the other and neither wants to take responsibility for the actions that have gotten us here and I’m the only one with total losses and a warranty that’s not worth anything and car repairs that I’ve paid the majority of (April no repairs were under warranty June 27- August 3 I paid approximately 1/2 of those repairs) and still have a vehicle that’s not working.
  
  

  Regards,
  
  *******************************
  

  Business response

  12/08/2022

  Preferred Warranties, Inc. (PWI) would like to respond to *** *********'s complaint # ********. 
  PWI is unable to assist with the repairs needed due to item # A.26 on page five under "This Service Contract does not Cover" section of the Service Contract. that states the contract does not cover repairs or replacements covered by any warranty of the manufacturer. 
  We understand *** *********'s frustrations but since the head gaskets are covered under the ***/********* 2-year warranty, *** ********* would need to return to a ***/********* dealer to address the concerns. 
  After this most recent rejection to the BBB response, one of our Claims Adjusters reviewed the notes and phone call with ***** *******, the repair facility. On the call, the service advisor, ***** stated their technician did three pressure tests and found no external leaks. The coolant was consistent with an internal leak and tested hydrocarbons in the cooling system, which they found the test to come back as positive for hydrocarbons. This is consistent with either a head gasket failure or crack cylinder head or block. If continually driven hot, the cylinder head or block can warp or crack. 
  ***** stated they are looking for head gasket replacement but it was never verbally mentioned to PWI that the technician was concerned about a cracked cylinder head or block. 
  If ***** ******* would have mentioned a concern to the cylinder head or block, PWI would have advised *****, that the Service Contract does not cover overheat damages. The Cylinder head and block are covered only if damaged by an internally lubricated part. Please see item #4 on page three under 'Seals and Gaskets' on the Service Contract. 
  Please note that PWI has already approved and paid for a total of three cylinder head gasket repairs for *** *********'s vehicle in 2022. 
  We appreciate your consideration and hope this helps bring an agreeable conclusion to this matter. 
  PWI 
  
  

• Initial Complaint

  08/23/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  We got an extended warranty when we bought the car from the dealer. The car had 53,306 miles on it when we bought it. I drove it for 2 weeks and the oil light came on. It has 54,800 miles on it now. The warranty company would not fix the problem so I paid for it. I drove it for 1 week after the repairs were done and the engine seized while my son was driving on the freeway. We were lucky he was able to exit the freeway to safety. They will not cover the expense of a new engine. It is covered but they won’t pay because of sludge in the oil pan. I just bought the car and haven’t neglected to do any repairs since I owned it. No where in the contract does it say it will not pay for engine of sludge is in the oil pan. I just want the engine repaired.

  Business response

  08/24/2022

  
  Preferred Warranties, Inc.(PWI) is in receipt of **. ******** complaint # ******** received on 08/24/2022.
  
  On or about 08/16/2022, a claim was called into PWI from **************************** stating that **. ******** vehicles engine was locked up. Procedurally, PWI requested an independent inspection to better understand the extent of damage.  
  
  The third-party inspection report revealed metal debris was present in engine oil pan, and oil pick up screen. There was also sludge and varnish in oil pan and lower engine/crank case. Engine was seized and would not rotate. These findings are consistent with long term failure and pre-existing sludge in the engine.
  
  According to the Service Contract on page six, PWI denied coverage based on items #B2 and #B12 under “This Service Contract does not Cover” that state the service contract does not cover failure due to lack of customary maintenance nor sludge.
  
  Attached is a copy of the Service Contract ****************** purchased and a copy of the inspection report for reference. We appreciate your consideration and hope this explains the situation.
  

• Initial Complaint

  08/01/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I purchased a vehicle on 2/28/22 along with a preferred extended warranty in which I paid $2500 up front. In less than 5 months of my purchase, I had to take my vehicle to the dealer due to check engine light, rough idle and white smoke coming from the exhaust. I was told I would need a new engine due to the previous owner neglect,. The preferred inspector visited the dealership and my claim was denied. Why would I spend this kind of money on a service that I can’t utilize such as this due to some one else’s neglect. They offered no resolution to this and now I am left with a 2018 SUV that I can’t utilize. I was also told that they were waiting to hear back from all parties involved for additional information, but when I reached out to those parties they had no record of this and they were actually waiting to hear back from this warranty company. Someone needs to take responsibility and not my money in this matter.

  Business response

  08/05/2022

  
  Preferred Warranties, Inc. (PWI) is in receipt of *****************'s complaint # ******** dated 08/02/2022.
  
  On or about 07/21/2022, a claim was called into PWI with the complaint of white smoke coming from the tail pipe of *****************'s vehicle. The repair facility, ******** of Northern Kentucky, where *** *******s’ vehicle was taken to, discovered sludge in the engine. Procedurally, PWI requested an independent inspection to better understand the extent of damage.  
  
  The third-party inspection report revealed sludge and metal debris present in the engine. These findings are consistent with long term failure and pre-existing sludge in the engine.
  
  According to the Service Contract on page six, PWI denied coverage based on items #B2 and #B12.  that state the service contract does not cover failure due to lack of customary maintenance nor sludge. In addition, PWI does not cover repairs that are covered by any warranty of the manufacturer. *** *******s’ vehicle is still under factory warranty.  Please see item # A26 on page five under “This Service Contract does not Cover” section of the Service Contract.
  
  As of 08/04/2022, a PWI claims representative reached out to *** *******s and explained noncoverage and we do apologize for the delayed response.
  
  Attached is a copy of the Service Contract *** *******s purchased and a copy of the inspection report for reference. We appreciate your consideration and hope this explains the situation.

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