Complaint Review: Herritage TPA

Sherridan: I sit as a arbitrator and or testify as a expert witness in auto mechanical claims for both sides. OF the 240 or so automotive extended service contracts I have read over 200 of them. My response is based on the information provided however, you do offer some very points. Mike didn't share that information based on what Mike did provide he does not have a valid claim.

Consequential damage is not a loophole that dealerships or extended warranty companies use to deny paying claims it is a verbiage that has been used for over 35 years that has been ruled on in many different cases.

Mike: Your statements about California are totally incorrect "there is no such thing as self insured" all programs have to have an admitted carrier providing the consumer with the ability to make a direct claim against the insurance company. Additionally California automotive dealership Are Not required to disclosed to consumers if they are producer owned. Dealership are only required to disclose that information to the IRS."If your interested at or about 15% of dealerships throughout the country are involved in any type of producer owned companies". If an dealerships is involved in a producer owned company Mike, is only about 10% correct on how the each individual policy earns out.

While I am pleased to hear the dealership offered to repair your vehicle it is very disturbing to read you canceled your check to cover your deductible and shop charges you may find you may you have more problems and by the way automotive dealerships do not lose 99% of the time its closer to 50/50 as they get smarter I expect that figure to go up.

When people tell me they were forced to buy I ask these questions:

Can I see all the papers involved in your transaction?

Is this your signature?

Can you read english?

Do you have a voice or video recording of your transaction?

There are some/few/many cases I have no doubt not everything was totally explained for that individual(s) to fully understand.

FYI - Any one who has read this or has responded. Since I have posted this I have learned some very interesting things about dealerships and the reasons why they turn down warranty work. First off "consequencial damage" is a interesting loop hole for the dealership to pick and choose what they want to cover as far as warranty work. The reason I say dealership is going to be expained in the following. Most extended warranties are self insured.

In California that information has to be disclosed upon request from the warranty company. Now, self insured means that the money recieved for the extended warranty goes into a bank account for the dealership. If no warranty claims are filed against this money for one year then the money goes to the dealership free and clear. Are you getting the idea as to why they do not want to cover the warranty work yet? They lose money if they do. At the time my wife was out of work and had nothing better to do than harrass the owner of this dealership. After explaining to the owner that not only would we file a claim with small claims (inside source informed that dealerships lose 99% of these cases) but we would make sure that it would be the most publicized filing that they had ever seen. A week later my truck has a brand new motor. Much like Clinton thought he would never get cought with his pants down, the dealership got theres pulled down to there ankles.

As far as Steve goes, He sounds like someone who loses his pants quite often or at least the company he works for does, nor does he have a clue of how his vehicle works. Tell me, isn't it GM that buildes the Northstar engine that will run with no oil or water for 40 miles? At least that is their claim which has yet to be seen. There is nothing worse than a large company trying to take advantage of people that actually go out and work for a living.

Oh by the way I had to write a check to the dealership for the radiator and service fee. I cancelled it. On the contract they neglected to have me sign the part were it explains in the state of California they cannot force you to by an extended warranty. So if they would like me to give them the money for the check I will be happy to and then take them to court for a full refund of the extended waranty. Life sucks when the rabbit has the gun!

FYI - Any one who has read this or has responded. Since I have posted this I have learned some very interesting things about dealerships and the reasons why they turn down warranty work. First off "consequencial damage" is a interesting loop hole for the dealership to pick and choose what they want to cover as far as warranty work. The reason I say dealership is going to be expained in the following. Most extended warranties are self insured.

In California that information has to be disclosed upon request from the warranty company. Now, self insured means that the money recieved for the extended warranty goes into a bank account for the dealership. If no warranty claims are filed against this money for one year then the money goes to the dealership free and clear. Are you getting the idea as to why they do not want to cover the warranty work yet? They lose money if they do. At the time my wife was out of work and had nothing better to do than harrass the owner of this dealership. After explaining to the owner that not only would we file a claim with small claims (inside source informed that dealerships lose 99% of these cases) but we would make sure that it would be the most publicized filing that they had ever seen. A week later my truck has a brand new motor. Much like Clinton thought he would never get cought with his pants down, the dealership got theres pulled down to there ankles.

As far as Steve goes, He sounds like someone who loses his pants quite often or at least the company he works for does, nor does he have a clue of how his vehicle works. Tell me, isn't it GM that buildes the Northstar engine that will run with no oil or water for 40 miles? At least that is their claim which has yet to be seen. There is nothing worse than a large company trying to take advantage of people that actually go out and work for a living.

Oh by the way I had to write a check to the dealership for the radiator and service fee. I cancelled it. On the contract they neglected to have me sign the part were it explains in the state of California they cannot force you to by an extended warranty. So if they would like me to give them the money for the check I will be happy to and then take them to court for a full refund of the extended waranty. Life sucks when the rabbit has the gun!

FYI - Any one who has read this or has responded. Since I have posted this I have learned some very interesting things about dealerships and the reasons why they turn down warranty work. First off "consequencial damage" is a interesting loop hole for the dealership to pick and choose what they want to cover as far as warranty work. The reason I say dealership is going to be expained in the following. Most extended warranties are self insured.

In California that information has to be disclosed upon request from the warranty company. Now, self insured means that the money recieved for the extended warranty goes into a bank account for the dealership. If no warranty claims are filed against this money for one year then the money goes to the dealership free and clear. Are you getting the idea as to why they do not want to cover the warranty work yet? They lose money if they do. At the time my wife was out of work and had nothing better to do than harrass the owner of this dealership. After explaining to the owner that not only would we file a claim with small claims (inside source informed that dealerships lose 99% of these cases) but we would make sure that it would be the most publicized filing that they had ever seen. A week later my truck has a brand new motor. Much like Clinton thought he would never get cought with his pants down, the dealership got theres pulled down to there ankles.

As far as Steve goes, He sounds like someone who loses his pants quite often or at least the company he works for does, nor does he have a clue of how his vehicle works. Tell me, isn't it GM that buildes the Northstar engine that will run with no oil or water for 40 miles? At least that is their claim which has yet to be seen. There is nothing worse than a large company trying to take advantage of people that actually go out and work for a living.

Oh by the way I had to write a check to the dealership for the radiator and service fee. I cancelled it. On the contract they neglected to have me sign the part were it explains in the state of California they cannot force you to by an extended warranty. So if they would like me to give them the money for the check I will be happy to and then take them to court for a full refund of the extended waranty. Life sucks when the rabbit has the gun!

Steve I wonder about you. What do you do for a living. Have you read every extended warranty contract out there? You are assuming a lot of things that are not addressed. Did he pull over when he noticed the smoke? Was the engine so overheated by the time he was able to get safely off the road that head warpage had already occurred? If he would have stopped immidiately would ther still have been damage? A fan spinning at a couple thousand rpms, huhmm.

There are several other questions that where not asked or answered but the point is no one really knows what happened but Mike. It stands to reason that the warranty companies have a vested interest in denying high dollar claims and they market there product in venues that charge high dollar for repair. I have to admit that some claims are outright ridiculous but I have read of some very yalid claims being denied.

One last thing for Mike, NO one forced you to buy anything.

If you read your Heritage service contract you will find the wording "consequential damage" you will also note that consequential damage is not covered. If you immediately pulled over your engine may have not failed.

You being ASE, NHRA crew you know exactly what the results are going to be if a driver does not immediately discontinue vehicle operation.

Great advice but only if you knew that it happened. Just to let anyone who reads this know, I owned my own shop, ASE certified, and 6 years crew chief NHRA. I have actually had the pleasure in doing hands on research of cooling systems. Now with all of that in mind lets try some better responses. If it is under warranty then pay for it. I paid for it when I bought the car. You don't pay for auto insurance with the expectations of an accident or to have the company say we don't cover that.

I have to agree with Heritages response in declining your claim. The continued operation caused your vehicle to overheat which lead to additional damage to your vehicle. You should have pulled over and called a tow.

I have to agree with Heritages response in declining your claim. The continued operation caused your vehicle to overheat which lead to additional damage to your vehicle. You should have pulled over and called a tow.