Complaint Review: CARCHEX - Select State/Province

We purchased a Carchex extended warranty when our little Lexus SC 430 had only 81,000 miles on it.  It had always been serviced by Lexus and was in excellent condition.  We purchased the warranty after looking at a few extended warranty companies and decided to get the Carchex Premium coverage, which at the time was the best they offered.  We financed it through Mepco and paid $2265.00.  Mepco is a partner.  Their other partner who administers the claim is Administration Plus USA in Dublin, Ohio.

Here is how it works:  You buy the warranty and think you are covered for what their contract states.  For instance, ours covers gaskets and seals and mounts and small things that can go wrong.  In our case, several things went wrong with the car and we decided to make a claim.  We kept up our part of the agreement, changing the oil every 3000 instead of 4000 as they require.  We have taken care of maintenance items and then boom, they get you.

Valve cover gaskets are covered.  Here is the rub.  One valve cover seal is broken and actively leaking, so that would be covered.  The other valve cover seal is what is called "seeping," according to the adjustor, ready to start leaking at any moment, so they won't cover that.  It does not state they differentiate between small failure and large failure, either way, it failed and they then fail to cover one of the valve covers.  When they are done, the oil has to be changed each time.  So, you pay more copays and more oil changes if they deny one of them.

It's the same thing with the struts.  All the struts and parts to the struts are covered.  The mechanic says the struts are bad, but only one is leaking oil, the others have bad mounts and bushings, so, Carchex covers the leaker and not the other ones that you've paid to have covered in full, including mounts and bushings.

So, Carchex sells you the policy.   Their partner finances it, then their other partner, makes the claims as difficult for you to collect as possible.  They want you to pay as many copays as possible.

We received a nasty message from Tony saying, essentially, the car is old (although it is a Lexus with less than 100,000 miles) and these are maintenance (they are not, they are covered) so we will not pay, too bad for you. (paraphrased.)

You can leave messages for the managers and they don't call you back (Derrell or Derrick at Administration Plus) or Brian at Cachex and Mepco, well, once you have paid, they are out of it.

I am going to have to take this company to small claims court to sue them to cover the parts we paid to have them cover.  They will hassle you thinking you will give in and pay for the work they legally contracted to do.  This is a miserable experience so far.  I could have banked the money and then paid for this work with it.  They are not in the business to lose money on claims, they are in the business to stall and make you lose your transportation until you pay yourself and then have to fight for them to pay.

Our mechanic is honest and only put in for work that is contractually covered and they want to pay about 1/4 of it.  Extremely frustrating and expensive.  I'm going to have to pay for it and then sue to get them to pay for the work.

It is a case of GOOD COP (Carchex) BAD COP (Administration Plus USA).  Nice scam tactic.