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Solving Problems with Service Plans and Warranties

No ma'am, I'm sorry, but your policy does not cover this. Our engine warranty does not cover engine problems.

Problem

Scene: Company Meeting at Shady Warranty Company, President Speaking

Good morning, I have both good and bad news. Some of our employees have performed well, and we can present Employee of the Week to Jack Smith, who turned down 77% of claims presented to him and reduced company charges on almost all the others. We will continue to reward employees who reject or reduce claims and fire the others.

Solutions

What do you do if your warranty company refuses to cover a repair, pay a claim, or perform their obligations?

1. Document the Refusal and Create a Paper Trail

Check online for complaints from other consumers on pages such as bbb.org.

2. Create a List of Documents for Future Use

Save and number these on a separate sheet (do not write on the documents themselves; keep any notes separate):

Copy of the policy
Repair order showing what needs to be done and the cost
Request for coverage and, if available, the denial letter
Warranty company brochures or web pages showing broad coverage
Material showing damages, repair costs, car rental expenses, or job loss paperwork

My claim is covered and I will be contacting Division of Consumer Affairs and my lawyer

3. Contact the Dealer That Sold the Policy

Most policies are sold by the dealer at the time of sale. If the dealer claimed they were selling a policy that covers engine and transmission failure but instead sold you something riddled with disclaimers and exclusions, you may have a claim against the dealer for deception and breach of warranty.

4. Get Help from Consumer Affairs or Legal Counsel

Many consumer affairs agencies investigate wrongful failure to cover claims.

Check for a consumer or lemon law lawyer.
Some lawyers may accept claims on contingency, meaning their fee is charged from the settlement or paid by the defendant.
Others may charge on an hourly basis, requiring payment regardless of the result.

5. File for Arbitration or Court if You Cannot Locate a Lawyer

Frequently, the provider will only pay attention if a legal claim is filed, either in court or through arbitration.

Have Questions About Your Warranty Claim? Contact Us for a Free Consultation