Preferred Warranties, Inc. Consumer Reviews

PENNSYLVANIA -- Last November I purchase a 2008 GMC Sierra C1500 truck from Caddy Shack Cars located at 3125 Solomon's Island road Edgewater MD 21037 #410-956-8800. The price on the truck was $14629.00 with about 77,000 miles, along with a vehicle service contract with (PWI) Preferred Warranties Inc, 200 Pine Brook Place, P.O Box 278 Orwigsburg. The price I paid for the service contract was $1850.00 with 24-month coverage. I have had some minor problems with vehicle since I bought it but nothing major until this fall about Oct/Nov time frame. First the vehicle ignition system was failing, vehicle would not start.

Took vehicle to Advance Auto for battery check in which battery checked good, technicians was looked at amp meter on dash and saw that charging system was not charging, replace alternator ($129.00). A few weeks later, I experienced the vehicle would not start again, replaced battery ($153.95) after it check bad. I then been noticing that my oil pressure was dropping and getting low oil pressure warning on vehicle warning system. The first time was about September/October. I check my oil and discovered little oil indication on dip stick. Add quart of oil which bought oil pressure backup.

A few weeks later while changing alternator, vehicle maintenance system indicated oil change needed. I had changed the oil with manufacture recommended oil. This last month again I experienced the oil pressure drop with vehicle system flagging warning on dash. Again I checked oil with an indication on vehicle about a quart or more, low on oil, I add a quart of oil again. Just after the new year vehicle ignition system was failing. Took vehicle to Advance Auto for battery check, battery checked alright. Dash board amp indication charging system not charging.

I took my vehicle to the Local GMC dealership where I had some maintenance work done on vehicle in past. The vehicle is current at Wine Gardner GMC Buick located at 935 Solomon's Island Road Princes Fredrick Maryland 20678. PH# 443-295-4325 and ** is the service manager with the knowledge of my vehicle repairs. I file my calm on January 4, 2019. I told service person ** the problems with the vehicle starting with truck not starting, to add a quart of oil or more between oil changes not knowing if I had an oil leak or it was burning the oil, and the passage side window control not working, along with other electrical issue with audio to interior lights and tail lights dimming.

During the diagnostic check of the vehicle the problem with charging system it was discover that problem maybe just a lose battery connection, the window control unit switch needed to be replaced. The technician had discovered that the vehicle was excessively burning oil being way beyond limits. The service advisor told me that the engine would have to be torn down to determine why or what part caused the failure. Was told that PWI would not cover cost of teardown until it was discovered the failure was. I later received a call from PWI representative stating that vehicle repair may not be covered.

I was told by my service advisor that forward transmission seal was leaking and was told that PWI doesn't cover, while on phone with PWI claim representative I ask him how they do not cover the seal, that if transmission fails because of the loss of fluid you must cover that repair, wouldn't you? So far, the only thing that PWI is the door switch which cost $207.00. That is something I could afford and replace myself.

In short vehicle was checked and indication of vehicle burning excessive amount of oil. My claim is not being honor by warranty company for repair of vehicle, my experience with these warranties companies is they write their policies in a way that they essentially covered nothing. I am a Navy veteran and a veteran of both gulf Wars and I am thoroughly discussed that me and other veteran go in harms way to protect freedoms and only to allow Companies like this to exist that do nothing but rip people off. This is the second time that I have purchase and extended warranty on a used vehicle, ($1300) I think is what we paid back in 1994 and the warranty didn't cover anything when we bought vehicle in for repairs.

As a consumer and a veteran this is acceptable that you pay all this money to cover the cost of repairs in the event of a breakdown only to find out that the repair is not covered. In my opinion from reading to warranty and past experience is that that these warranties are written in such in way that they cover nothing and isn't worth the paper it is written on. I am filing this complaint to have the engine rebuilt with all failed parts replaced, transmission front seal replaced and any and all electrical problems including passage side window vehicle audio system and will not anything less.

I am also filing this complaint so that a change in which this companies do business change and are held accountable, that consumer like myself get what they pay for and have a voice where they are getting cheated from companies that sell product and service that that in short, a scam! Attached are some supporting document to my claim.

ORWIGSBURG, PENNSYLVANIA -- On July 13, 2010, I purchased an extended protection warranty from Preferred Warranties Inc. ("Preferred") for the used vehicle that I purchased. My vehicle is a 2007 Jeep Grand Cherokee 4x4. The extended warranty cost me $1500, and was to cover a wide variety of items if the car broke down or needed repairs over the next 48 months or 60,000 miles. So far, I have needed to use the extended warranty twice. The first time I tried to get Preferred to cover what is specifically supposed to be covered under the warranty, they told me that I had not followed their precise rules on pursuing a claim and that they would not honor any warranty for the repair.

The second time I was particularly careful to follow the procedures so that the repair would be covered. I thought that I did everything needed, including having the repair shop call Preferred to make sure everything was done correctly. Once again, Preferred found some small procedure that they claim was not followed and refused to pay for the repair. So far, I have paid close to a $1,000 for repairs that are specifically designated as being covered under the extended warranty from Preferred.

From the instant I was on the phone with the Preferred representative, I got the runaround. Before I could barely state what I was calling for, I received an adversarial challenge that I had not followed some minute procedure so the repair would not be covered. This was followed in later calls with Preferred substantially negotiating down what they would pay for a covered repair because their procedure was not followed to the "nth" degree, even though I did everything possible to follow these procedures.

I have been around long enough to know when I see a scam and this is it. Preferred is happy to take your money and give the impression that any major repair for your used vehicle will be covered under their warranty, but then they actively seek to find a loophole or super-technical item to not pay, or to negotiate down the amount that they will pay. This is a total rip off and an expensive one at that. So far, I have paid for an extended warranty, and I have also paid for the repairs that were supposed to be covered by that warranty.

Preferred is running a scam. I would like my $1500 back that I paid for the warranty. Clearly, Preferred has no intention of ever paying anything under it. I still have 41 out of 48 months left on the extended warranty, but with no real hope that Preferred will ever honor it and pay what it is supposed to pay. I also note that I am just the latest victim of these same business practices of Preferred.

ORWIGSBURG, PENNSYLVANIA -- Don't buy a used car extended service contract from Preferred Warranties of Pennsylvania. Their exclusions are comprehensive, meaning that it is VERY unlikely that you will ever recover on a claim. Check some of their exclusions at http://autowarranty.8m.net and then ASK your mechanic how likely it would be to have a problem that IS covered by their contracts. They REQUIRE that you make your decision on the service contract at the time of auto purchase, and they GIVE NO REFUNDS UNDER ANY CIRCUMSTANCES. Stay away from this company's service contracts!

If your dealer offers their "warranties" for "free," ask them to reduce the price of the vehicle by the amount they would have to pay for the "warranty." "Free" is how much the warranty is worth to the consumer, but it is not how much it costs. Check out their claims at their website www.warrantys.com.