Complaint Review: American Auto Guardian Inc

Warning: make sure you read the entire contract with a fine tooth comb. What they neglect to tell you when the contract is issued is the following: From what I understand there is a CAP on the amount of claims you can have on the contract, for example if your car is worth $7,000 when you purchase the contract that is how much your warranty is worth for that year, and then the contract deprecates each year after as your automobile does according to current NADA vales for your particular automobile . So, if your car deprecates $1,000 so does your contract meaning your contract is now worth $6,000 when a year ago it was worth $7,000. Suppose you had a $500 claim, and then a $1,000 claim, and then another $500 claim, and then a $5,000 claim you would be only covered up to $6,000. You would have to pay the other $1000 out of your pocket, regardless whether you had another year left on your contract, it would be no longer valid because the contract would be maxed out.

Also be careful when it comes to repairs. They do approve most of the repairs as long as you have not met your CAP on the warranty. However, when the repairs become costly the representative for the company will try to find ways to deny the claim. Here is an example if you have a leak coming from you automobile and it is just slow drip they will not cover the claim. They will use a word called "SEEMING" to deny the claim. Seeming meaning you see fluid but it is not a leak according to their representative. 

If you are interested in purchasing a contract form this company contact the claims department and verify items you think that might be covered under the contract and also have them explain the warranty CAP, depreciation scale and the word seeming before you purchase.