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I purchased an extended warranty with Carchex. After the 30 day 1,000 mile wait period, I discovered a rattling coming from the underside of my car. After taking my car to my local mechanic, I was told there was an issue with the differential. I provided my mechanic with my service contract and he initiated a claim with Carchex. Carchex denied the claim without ever coming out to inspect the car! My mechanic then called them again, and they sent out one 4 days later with the same denial of claim stating it was "pre-existing" even though the car was totally fine until the day before I brought it to my mechanic. If they are going to deny a claim without inspecting the car, then they pre-determine everything is pre-existing.

I now have to take money out of my 401K to repair the car. Since it takes about a month to get funds distributed, I had to park my car in an expensive lot and incur all kinds of transportation expenses to get to work until the car is repaired.

CARCHEX HAS A LONG HISTORY OF COMPLAINTS DENYING CLAIMS, A LOT SIMILARLY WITH THE COMPANY NEVER INSPECTING CARS. STAY AWAY FOR THEM AS THEIR WARRANTIES ARE NOT EVEN WORTH THE PAPER THEY AR WRITTEN ON.

Monetary Loss: $4000.

Location: Baltimore, Maryland

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Guest

4/15/2015 โ€ข My name is Brian Delman and I am the Customer Support Manager at CARCHEX. We understand why customers would be unhappy when a claim I denied and we also think it's important to understand the facts behind the claim denial for everyone's benefit.

This contract was purchased for a 2008 Mercury Mariner on 05/20/2014 with a starting mileage of 69605.

The vehicle service contract includes a standard waiting period of 30 days and 1000 miles before any claims may be submitted. Any failures that occur before or during the waiting period are considered pre-existing and not eligible for coverage under the agreement.

On 06/23/2014, 4 days into the policy, a claim was called in for a noise coming from the front of the vehicle. After inspection, it was determined that an internal failure of the front differential caused a crack in the casing.

The failure occurred at 70620 miles, 15 miles into the policy. The claim was denied based on the fact that the failure was long term in nature and could not have occurred within the time period.

06/25/2014 the customer contacted CARCHEX upset about the claim denial. He advised there was a rattling that had come back during his trip home from Montreal. The customer felt this was not pre-existing or long term.

To make sure the claim was processed correctly and fairly, an independent third party inspection company was hired.

Their findings coincided with the original diagnosis; this was a long term failure that would have occurred prior to the policy start date. There were also pictures taken which show the extensive damage to the differential gears and case. The failure to the gear is a long term failure due to the lack of lubrication.

Due to the customer's dissatisfaction, CARCHEX provided the customer with a full refund. We received a cancellation form on 07/21/2014 and the refund was processed on the same day.

As always, customers can reach out to CARCHEX's customer service team to resolve any issues. Our CEO, Jason Goldsmith, also makes himself available and can be reached directly at CEO@***.COM or by calling 1-87*-***-**** ext 1449 Respectfully, Brian Delman

Guest
reply icon Replying to comment of Guest-1000028

Wow. This company will do anything to act as if they are in the right.

Juts some advise from an outsider looking in. Sometimes you shouldn't say anything. You really just look unprofessional. You just explained that 4 days into the actual policy which was really over a month after purchase that the car messed up.

You knew the car wasn't new when you gave the customer a policy.

I just want to say thank you for this site. I wont be purchasing anything from CarChex. Also, just a little more business advise.

I too am a CEO, if my customers aren't happy it doesn't matter how many times I put my email and phone number on the internet, it will get me no where if my customers aren't happy. What I would suggest it to take a little more time before issuing a policy. Go and inspect the car, if it doesn't pass your initial inspection then don't issue the policy.

OR, be honest with the customer and sell them the right policy. Trust me it would be less headache in the end I promise you.

Guest

Yeah the did the same to me

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