Complaint Review: Carchex - Internet

 i just had same problem on  the same bmw 75li on same two oil leaks, plus a transmission problem and they declined all three completely dont know what to do now ive paid them lots of money for this warranty and now stuck how can this begoing on

K.L., Thank you for posting your complaint.  You have given me the opportunity to publicly provide the facts about your partial claim denial to readers and you bring up several points that are important for consumers to understand when purchasing a Vehicle Service Contract. While I understand that any customer isnt thrilled when a claim or partial claim is denied, as it was in this instance, its important to look at the facts and the terms of the contract that you reviewed and agreed to at time of purchase.



While I dont dispute that EFG has partially denied your claim, I can say with 100% certainty that there are several inaccuracies in your post. To start, you stated that the VSC you purchased does not cover the valve cover and valve cover gasket. That is a false statement. Those items have been covered and paid for to the amount of $1360.08. Seals and gaskets are covered for all covered components on the agreement as per the contract language that I bolded below:



COVERED PARTS



The following is a list of Covered Parts as determined by the coverage You selected, as indicated on Your Vehicle Service Contract. For convenience, Covered Parts are listed next to the vehicle systems to which they are related. The vehicle systems listed are NOT Covered Parts.



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DELUXE COVERAGE



ENGINE: Cylinder block and cylinder heads and all internally Lubricated Parts ; turbocharger ; supercharger ; harmonic balancer; timing gear, chain and belt ; timing cover ; intake and exhaust manifolds ; valve covers ; oil pan ; engine mounts; belt tensioners ; cam gear bolt ; harmonic balancer bolt ; and head bolts.



TRANSMISSION:Transmission case and all internally Lubricated Parts ; torque converter ; flywheel/flex plate ; vacuum modulator andtransmission mounts ; transmission cooler ; transmission oil pan ; and Transmission Control Module (TCM).TRANSFERCASE:Transfer case and all internally Lubricated Parts.



DRIVE AXLE(S): Drive axle housing and all internally Lubricated Parts ; 4X4 actuator ; drive shafts ; universal joints ; constant velocity joints and locking hubs ; center support/carrier bearings ; and differential cover.AC/HEATING: (Includes only factory or dealer installed equipment) Condenser ; compressor ; compressor clutch ; evaporator ; compressor pulley ; accumulator ; drier ; expansion valve ; idler pulley ; A/C controls and module ; heater core ; blower motor ; high/low cut off switch ; and pressure cycling switch.



SUSPENSION: Upper and lower control arm shafts, bearings and bushings ; wheel bearings ; spindles ; ball joints ; king pins and bushings ; radius arm and bushings ; stabilizer bar, arm and bushings ; torsion bars ; hub assembly ; coil springs ; leafsprings ; and suspension level control compressor.



STEERING: Steering gear box/rack and all internally Lubricated Parts ; power steering pump ; pitman arm ; idler arm ; tie rod ends; drag link ; steering column shaft and column couplings.



FUEL SYSTEM: Fuel delivery pump ; fuel injection pump ; fuel injectors ; fuel tank ; metal fuel lines ; fuel pressure regulator ; fuel sending unit ; fuel gauge ; air control valve ; engine control module (ECM) and fuel injection sensors.



COOLING: Water pump ; radiator ; cooling fan ; cooling fan motor ; fan clutch ; and coolant recovery tank.BRAKE: Master cylinder ; power brake cylinder ; vacuum assist booster ; calipers ; wheel cylinders ; compensating valve ; antilock brake system (ABS) ; hydraulic lines and fittings ; and parking brake actuator.



ELECTRICAL: Alternator/generator ; ignition coil ; horns ; distributor (does not include cap and rotor) ; starter motor ; starter solenoid; starter drive ; windshield wiper motors ; windshield wiper delay switch ; windshield wiper linkage ; windshield washer pump ; power seat motor ; power antenna motor ; power window motors and regulators ; power door locks and actuators; power trunk release ; wiring harness ; cruise control assembly ; ignition lock cylinder ; manually operated switches ; convertible top motor ; and driver information gauges (excludes burned out light bulbs). (Original factory installed radio, main speaker system, and single compact disk/cassette player up to a maximum of three hundred dollar ($300).



SEALS and GASKETS: "Leaking seals and gaskets on any covered part listed above." Minor loss of fluid or seepage is considered normal and is not considered a Mechanical Breakdown.



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Above are the covered coponents in black and white direct from the contract. The alternator bracket is a non-covered item as it is clealry not listed as a covered item.  Therefore the corresponding seal was not covered as per the seals and gaskets contract language. So the fact is, that portion of the claim, was correctly denied by EFG.



An administrator will adjudicate claims based on the coverage listed in the Vehicle Service Contract you purchased not based on your desire to have them pay any and all claims.  I know this concept seems simple but when you look at 99.9% of the complaints we see its almost always someone saying that they got scammed or ripped off because of a claim that was correctly denied by an administrator.  I should point out another fact here. EFG pays over 96% of all claims submitted to them but that still means that some claims will be denied due to the terms of the contract.



You also make a claim that CARCHEX has no control over what claims EFG pays.  While we cant force EFG to pay a claim that should be denied we do often make successful arguments for payment on behalf of our customers when we think EFG or any administrator has made an error in evaluating a repair that should be covered by the contract language in their VSC.  Yes, they like everyone else in the world can make mistakes. In this instance we agree with EFG that part of the claim related to the alternator bracket should not have been covered.  Further, as I stated to you when we spoke on the phone I would listen to our recordings of your calls and review your correspondence with your Vehicle Protection Specialist here at CARCHEX and if we made a mistake in how we represented the VSC then CARCHEX would pay 100% of your claim even if EFG denies that portion.  We found that our Protection Specialist was very clear in their presentation to you and represented the product accurately and consultatively.



Your Vehicle Protection Specialist took great care to transparently present and provide you the most comprehensive coverage available for your vehicle based on your vehicles age and mileage.  You reviewed the contact several times prior to buying.  Below is a record of the times you logged into our online CARCHEX Direct system to review your coverage and quotes.  You in fact reviewed the plan 12 times prior to purchasing your contract. A dozen times, clearly you must take some responsibility in knowing what is and is not covered in your VSC.  I also have to call a spade a spade, you are hardly a victim here.  I can't emphasixe this point enough.  It is important for any customer buying a VSC to read and understand the contract prior to purchase.  If you have questions about coverage make sure you are clear on the answer before you buy.



CARCHEX Direct accessed by K.L. 12 times prior to purchase.



11/6/2012     5:30:56 PM



11/6/2012     7:17:32 PM



11/14/2012     2:26:54 PM



11/14/2012     2:30:54 PM



11/21/2012     5:08:11 PM



12/19/2012     11:24:56 AM



1/3/2013     4:33:46 PM



1/3/2013     4:33:51 PM



1/24/2013     5:19:50 PM



1/24/2013     7:26:08 PM



1/24/2013     9:11:54 PM



1/26/2013     12:44:00 PM



Sadly, you are giving consumers terrible advice as evidenced by your own experience when you tell them to save their money instead of buying excellent coverage as you did from CARCHEX. You are already a winner with your own Vehicle Service Contract and for some reason, dont seem to get that you are. You have only had your contract for three months and you have paid $1208.25 into your plan but you have already received $1360.80 in benefits (not counting the additional $100 CARCHEX offered to pay for your deductible) and you still have three and a half years left on the VSC. There are no high interest bank accounts (as you stated) that can compete with those returns. Thats about a 7.5% return in 3 months. Im confident that over the term of the contract you will come to the conclusion that this was a great investment. If Im wrong you can make me eat my words but if Im right I hope you will do the same.



Finally, when we investigated the issue and then explained the denial to K.L. who seemed to understand why the claim was denied and showed no indication of being upset.  He never voiced his displeasure or disagreement with the denial but because K.L. is a valued customer as are all of our customers



CARCHEX made a good faith gesture to reimburse him his deductible on this claim. Being a correctly denied claim we had no obligation to assist at all but we wanted to let him know that we appreciated him coming to us with his concern and that we truly do value him as a customer. We will continue to do so during the remainder of his contract should he not cancel. Of course if he does cancel the contract before completing his payments then I can post my own RipOff Report on how K.L. took advantage of EFG and CARCHEX.  Just kidding K.L., Im only human, I need vent sometimes too and I do feel like your posting was a huge suprise based on our conversations. The bottom line is we take great care to live up to our brand promise of customer experience above all.  I believe we did everything we could to do that in this case and for our efforts we received in return the proverbial stab in the back. You are certainly intitled to your opinion but I'd rather deal in facts.



K.L., Im sorry if I come off giving you a hard time because you were a genuinely nice guy when we spoke but you cant just go around making false claims.  If you think Im wrong here you can call me anytime to discuss this issue further. My direct number is 1-877-227-2439 ext. 1449. Im always happy to try to help any customer, even ones who post on RipOff Report. I want you to be a happy customer and I will continue to go out of my way to do that and to change your opinion of CARCHEX, EFG, and Vehicle Service Contracts in general. 



Hakuna Matata,



Jason



P.S. If you don't want the $100 deductible paid to you I will do as you ask and send the donation to the charity of your choice in your name. Just let me know.