Kenny
Los Angeles,#2Consumer Suggestion
Sat, March 01, 2008
The warranty that you purchased has other restrictions in the agreement that allows Warranty Direct to deny claims at the dealership. Warranty Direct does not have the right to move your vehicle to a repair facility of their choice unless it states that in the contract. However, if you have your vehicle at a VW dealership and Warranty Direct only wants to pay for a used rebuilt part, that would not be a breach of contract. I always tell people to stay away from policies that state "we may use parts of like kind and quality or rebuilt" or whathaveyou, or a warranty that states "reasonable costs." The restrictions that an insurance company/underwriter puts in the warranty is not to protect themselves from fraud, but to protect themselves from paying out more than they have to. In this case, an aftermarket transmission is cheaper than a VW transmission and Warranty Direct wants to save that money.