Beware of purchasing an auto warranty from CarChex!
I purchased an expensive CarChex/Royal Administration extended warranty policy for $3,090.00 for a Silver Coverage. Since the purchase I have not had any issues with my BMW 328i 2007 since I take good care of it. However recently, the window regulator of my left rear window has been failing and my window is not going up. But since I purchased a warranty so that I wouldn’t have to worry for this type of failures I was confident that there was nothing to worry about. For reassurance, I went back to my contract agreement which states:
“2. GENERAL TERMS
The following General Terms are applicable at all times:
B. FAILURE OF COVERED COMPONENTS: We will pay or reimburse You for reasonable costs to repair or replace a Covered Component in the event of a Breakdown. Our amount of authorization may be based on the utilization of new parts, remanufactured parts, or replacement parts of like kind and quality.
C. APPROVAL OF COVERED REPAIRS: All Covered Repairs must receive prior authorization by the Administrator. The Administrator may be contacted at (800) 871-0467.
This Contract covers ONLY the components/parts listed below:
Alternator, voltage regulator, starter motor, starter solenoid, ignition switch, front & rear wiper motors and switches, washer pump and switch, headlamp switch, turn signal switch, rear defroster switch, AC/heater blower speed switch, power window motors, regulators and switches, power door lock actuators and switches.”
Since the agreement was clear that it would cover the window regulator, I went and followed the instructions for a claim and brought my car to the shop. The next day, after the diagnosis, the shop called me to tell me that they received the authorization from the warranty which I thought was good news. However they added that there would be a ~$250 balance since the warranty would not cover the whole cost of the repair. My deductible is $100 and this is all I can afford right now. I got so shocked by the news that I decided to call the administrator to get a better understanding of the situation. When I called Royal, they said I had to talk to Carchex because they are the ones I had the contract/agreement with. When I called CarChex they said that Royal was the administrator they are the ones to negotiate with.
Both companies refused to let me talk to a supervisor and continued repeating that they will only cover a certain amount of hours for the job. They tried to make me understand that I should be directing my concerns to my shop instead for charging for more hours. Why would I need to have a warranty if I wanted to deal with the shop? Nowhere is it said in the agreement that a component replacement/repair would be covered to a certain limit. If I knew there was possibility that a covered repair would not cover fully the costs other (minus my deductible) I would have reassessed the need to have a warranty or reassessed where I would bring my car. Now that my car is already at the shop even if I would want to shop around and go to another place I would still have to pay for a $140 diagnosis fee so it would just not make any sense whatsoever.
I tried to negotiate with them saying that in the future I will not go to the same shop and would go to a cheaper one if I have to, and to please be considerate since it is my first time using the service. I even begged them! They started yelling at me as if they were the victim! Can you believe that? They continued repeating that there is nothing else that they will do and would not consider my case. Basically they continued refusing to resolve the situation with me.
I am extremely frustrated and feel that I am being ripped off by them. I feel that they have the worst customer service ever and do not know that their client’s satisfaction should be their goal. They are clearly not aware of that. Therefore I would recommend anyone to stay away from them and not to make the same mistake I did. I have been doing research and seeking legal counsel. I prefer losing money through legal/resolution actions rather than letting this go... That is how disappointed I am.
Monetary Loss: $250.