I researched many different warranty companies and finally decided to go with Warranty Direct for two particular reasons: (1) they warranty the vehicle for repairs up to $12,000 rather than simply the value of the vehicle. In other words, if the vehicle is only worth $2,000 they will still pay up to $12,000 in repairs; and (2) they were considered by their competitors as a recognizable company.
I decided to sign up, and I understood that there was a 30 day/1000 mile waiting period, which seemed reasonable to me. At the end of that waiting period, I took my car into the Nissan dealership for a diagnostic. The dealership discovered that I had a transmission problem that needed to be addressed immediately. They recommended a replacement to the tune of nearly $4100.
They contacted Warranty Direct to authorize the repair, and to my surprise, Warranty Direct rejected and denied the claim. When I called them to find out why they did so, they first told me that I had fallen behind on my payments. When I disputed this, they finally figured out my account was up to date.
Next, they told me that my claim could not be paid because I had a pre-existing condition. I explained to them that I completed the waiting period and then I took my car in for a diagnostic. I refuted and explained that Warranty Direct should pay for the claim because I did my part as a paying client; furthermore, there is no proof that my car had a pre-existing condition. They told me the claim decision was irreversible and then the customer service agent hung up on me mid-sentence as I was trying to explain to her how unfair this was.
I now have a lawyer who has sent a formal letter directly to the company. It is frustrating to me that I not only have to pay for the warranty, but now I have to also pay for a lawyer, and apparently for my transmission as well. This is a direct breach of the warranty contract I signed. I highly recommend that anyone considering going with Warranty Direct run the other direction. You'll likely be scammed like me!
Bottom Line: No, I would not recommend this to a friend
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