You have a service plan, represented to cover engine or transmission problem, your engine fails and the company rejects the claim.  You call and they point to some obscure provision in the contract they say precludes your claim.  You want to represent yourself, one lawyer quoted a significant fee and said there would be hourly billing.  This is a common situation and this post discusses some common mistakes. 

But that told me the policy covers everything except routine maintenance

1.  Accepting the Warranty Company's Description of the Policy or the Law

Many warranty companies are bad, and the employees instructed to reject significant claims.  While their brochures and websites proclaim broad coverage, when claims are presented adjusters are given a list of disclaimers, excuses, or reasons for denial.  You don't have to accept them. 

2. Not looking hard enough for a contingency lawyer 

Most lawyers work on an hourly basis, case not acceptable, the lawyer still gets paid.  Even if there is success, his fee is not subject to a cap or any percentage of recovery.  For the lawyer that makes sense, cases can take time, facts can be different than suggested, and predicting outcomes can be hard.  Nonetheless several laws potentially provide for legal fees to be paid by the warranty company, namely the Magnuson-Moss Act and state Consumer Fraud or Deceptive Practice laws.  The consumer may have to search around but for those who bought used cars because they had limited finances, the search makes sense.  Check under consumer law, lemon law, warranty, to see if you can locate a lawyer in your state. 

3. Not presenting a claim if you cannot afford a lawyer. 

Sometimes you can't find a lawyer and then it makes sense to represent yourself. 

4. Arbitration 

While a single claim can be annoying companies are particularly afraid of class actions where thousands of claims can be grouped together.  In ATT v. Concepcion, the Supreme Court allowed a class action prohibition with a provision for arbitration.  There the arbitration clause was consumer friendly, and one-sided clause may be invalid.  Go to ADR.org, home of the American Arbitration Association which handles most arbitrations.  

5. Not combining claims against the dealer and warranty company. 

The dealer said the warranty covers almost everything, the warranty company says it covers almost nothing, the dealer says you need a lawyer to go after the warranty company, the warranty company says sue the dealer and in months ago each blames the other.  Sue both of them together.  If the arbitration clause is applicable to only the warranty company, then sue both of them, and tell the judge of your concern that the arbitration body cannot address all claims.  
 
 6. Limiting discussion to the Policy

 
The brochure, advertisement, and dealer statements say the warranty covers almost everything but the warranty is riddled with loopholes and disclaimers.  At any hearing, focus on the brochure, ask why it doesn't contain the disclaimers that the warranty company now say exist.  Focus on the reasonable expectations of the parties, and the purpose of the contract to cover engine or transmission failure.