Can my Extended Warranty company cancel my policy after paying out over $18,000?

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1,536
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TX, USA
A good service writer/manager will call the ext-warranty company first before performing the work. So, make sure you tell him to let you know if they reject the coverage. Case closed.
 
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TX, USA
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Originally Posted by Gimpy1
Unless they have read the entire policy paperwork any answer here will be a guess. Extended warranties are similar to insurance policies, what I recommend you do is very carefully read the entire contract first, it will tell you what they cover etc etc etc more importantly it will tell you the contract LIMITATIONS AND EXCLUSIONS, it will also tell you the reasons or conditions for "dropping" you. No matter what people say or tell you the policy and the company are bound by the contract. The company should have notified you (in writing) why they ate dropping coverage. Remember the contract is written by lawyer s, and these companies are in the business to make money, like insurance companies if you are too much of a risk they can cancel the policy. If you feel you should have been dropped file a department of insurance complaint, the company must address the complaint and explain why they dropped you in writing when responding to the complaint.
And that is why I have been so worried. I have truly cost them a lot of money. They have paid more than 3 times what I paid for my policy. So, I have been here just thinking one of these days, they will contact me and tell me they have canceled my policy because I cost them way too much money.
 
Originally Posted by PetitFrereArmada
(Excuse me with the super long biography. I am just looking for some insight) I have owned my 2012 QX56 now for 3 years 8 months. When I bought it, my credit union convinced me to buy extended warranty for my QX, which I reluctantly bought at $3,700. Thank God I did buy it! Well, after 4 months of owning my rig, I had to use my extended warranty to pay $2,500 to replace one of my DVD headrests in my QX that suddenly stopped working. 4 months after that, I came back from a major road trip where I beat my QX offroading in the San Juan mountains in Colorado. I kind of limped back home with broken front control arms, timing chain recall, needing new shocks, and some suspension parts. Total cost for it to leave the dealership was about $11,000!!! You read it right. Dealership and warranty company split the cost. I had to pay about $1,200 for the shocks since extended warranty did not cover that. Fast forward now to today. My extended warranty that I paid $3,700 for has paid out about $20,000 in repairs on my SUV. This cost has accumulated so high partly because each time I take my SUV to the dealership for repairs, they know I do have warranty and so they look up other things and recommend to be fixed, as long as my warranty can pay for it. My warranty always pays no problemo!
Am I reading this right? You abused your vehicle while off roading to the point you "limped back home with broken front control arms.....needing new shocks, and some suspension parts". If I'm reading this correctly your extended insurance company shouldn't have paid for those repairs. Your vehicle was damaged because of abuse. IMO, this is insurance fraud on your part. Scott
 
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As others said, it's in the contract. I doubt they can just cancel it. If they could just arbitrary cancel it, it'd make it a hard warranty to sell. It's basically an insurance product, some will have a lot of claims and some will not. Should have gotten a Mercedes, had mine for 5 years now and I don't think I've spent close to $3700 in regular repairs in that time period. And there's so many threads that push Japanese over German cars.
 
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Texas
I imagine that some of us would like to know the names of the 2 companies involved or at least a little more information about them. Thank you.
 
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238
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TX, USA
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Originally Posted by GZRider
That dealer was sketchy and yes the total payout is generally limited to the value of the vehicle, so they probably do have a way to avoid paying any more high dollar repair bills but you would need to read your specific warranty contract. Also what did you do to that rig? 4+ years and 60,000 *85k total on car) miles on my 12 g37x SEDAN including beaches, natl forest roads et and the undercarriage is still in good condition with 1/2 the ground clearance with all of frequent fluid changes, brakes, rotors, tires a gates serpentine belt. No wait they did replace the analog dash clock under warranty. What do you do to your vehicles?
You know nobody has time to read those long warranty contracts. I just knew I had bought a good warranty. they had 3 options when I was buying the warranty. I bought the middle one which is called the Deluxe. You are definitely treating your G37x good. But you have only 85k on the car and it is does not see bad roads, so I expect it to last. If you look at my signatures, I also own a 2008 Maxima that I bought brand new in 2008. It has had its own problems but has treated me well. I have owned that car for 11 years now and as of today, it has 254,000 miles and the car died on me about a month now. In my 11 years of ownership, I honestly do not think i have spent over $5,000 in repairs on that car though the car is dead now and I am torn between spending the quote of almost $2,000 to fix it or should I just junk the car? But it has sentimental value to me or I would have already junked it now. The car is dead and just sitting in my driveway now. Also, I do not wish to go and buy another car and have a payment on my truck and a car. Besides, I want a brand new car if I am to have another car. So, I have to pay off this QX before I buy another car, which will be brand new. I take my QX56 offroading a lot in Utah and Colorado, for those who have been to Moab, Ouray and Telluride. If you want to see my road trip and offraod adventures with my QX, feel free to look at my 4 road trips from my last road trip thread below. My yearly road trips with my QX56...
 
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10,436
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Cincinnati, OH, USA
I may get flamed for this somewhat, but my experience with Nissan has not exactly been stellar-and a big Q flagship SUV is probably the last thing on earth I would take off-road, they seem a little fragile (IMO). I would sell it or trade it in before I put any more $$$ in it, especially if your warranty gets dropped.
 
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238
Location
TX, USA
Thread starter
Originally Posted by billt460
One thing is for sure and for certain. You could be the poster boy for answering the question..... Is an extended warranty worth the money?
For real. Warranty is definitely worth it in my case. But you know warranty is kind of like insurance. So many people pay into it but very few ever get to file a claim or benefit from it. My particular warranty company sure does have more bad reviews online than good reviews. But then again, very few people give positive reviews online. Mostly people with bad reviews will post about their grievances.
 
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4,107
Location
SW Ohio
Originally Posted by PetitFrereArmada
This is what will happen. Something will be wrong with my car. I will take it to the dealership for problem A. The dealership sees I have warranty. They say they will check my concern and do a complimentary check also around the car. Soon, they will call me and tell me that they can fix problem A under my warranty. Then they will say they found problem B and C and my warranty can pay for it.
People have asked questions along similar lines where they have a 'new' car and the warranty is expiring soon. They've asked about going to the dealership and effectively asking them to find something that can be "repaired" under warranty before the warranty expires. I distinctly remember one of the members here (Mightymouse ??) who is a Honda dealer tech and he said they are forbidden from "fishing" for warranty work like this. I still think the dealer is milking the warranty company for everything they can, which is wrong in my opinion. Covering something that broke is fine, but looking for other stuff to repair when it's not broken isn't right....
Originally Posted by PetitFrereArmada
I felt like it was forced unto me by my credit union. I never wanted it
I was truly disappointed when my credit union even offered me an extended warranty on my car. I thought it was a shady thing that used car dealers sneak in or scare people into purchasing. Even the loan officer started it with, "I'm sorry, but I have to ask you, are you interested in....". I politely interrupted him so he didn't have to go through the whole spiel they have to give and he thanked me and asked me to initial the box for declining the warranty. He even had to offer me gap insurance even though I was only borrowing 50% of the car's book value, i.e. there was NO "gap" to cover.
 
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238
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TX, USA
Thread starter
Originally Posted by HangFire
If I was in your position, I would accept that $3,700 for $20,000 back (even if it would be $10K at a non-dealer) was a heck of a deal, count my blessings and move on... to dump that car and get something more reliable.
I don't understand exactly what you mean. When I was paying for the waranty, little did I know that my suv would be costing $20,000 in repairs. But I am glad I did. At this point, I truly was considering if I should dump the car and move on, but I will not lie, I do like my suv. So, me and it will ride this tide for some time. My warranty has already fixed a lot. If you look at my build thread, you will see. So, I plan to keep this rig until I atleast pay it off or it gets to 200,000 miles, except the maintenance cost goes off the roof.
 
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Lake Havasu City, Arizona
Originally Posted by PetitFrereArmada
Originally Posted by billt460
One thing is for sure and for certain. You could be the poster boy for answering the question..... Is an extended warranty worth the money?
For real. Warranty is definitely worth it in my case. But you know warranty is kind of like insurance. So many people pay into it but very few ever get to file a claim or benefit from it.
It doesn't take much to get your money back on today's vehicles. When I purchased my 2015 Jeep Grand Cherokee, I purchased the Chrysler Max Care Lifetime Warranty. It ran right around $2,300.00 at the time. This past spring I had an A/C evaporator go south. The total bill with parts and labor was just over $1,500.00. All I paid was the $100.00 deductible. So on one single repair I got over 60% of the warranty cost back. Definitely worth the money and peace of mind.
 
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111
Location
MI
Originally Posted by PetitFrereArmada
Originally Posted by GZRider
That dealer was sketchy and yes the total payout is generally limited to the value of the vehicle, so they probably do have a way to avoid paying any more high dollar repair bills but you would need to read your specific warranty contract. Also what did you do to that rig? 4+ years and 60,000 *85k total on car) miles on my 12 g37x SEDAN including beaches, natl forest roads et and the undercarriage is still in good condition with 1/2 the ground clearance with all of frequent fluid changes, brakes, rotors, tires a gates serpentine belt. No wait they did replace the analog dash clock under warranty. What do you do to your vehicles?
You know nobody has time to read those long warranty contracts. I just knew I had bought a good warranty. they had 3 options when I was buying the warranty. I bought the middle one which is called the Deluxe. You are definitely treating your G37x good. But you have only 85k on the car and it is does not see bad roads, so I expect it to last. If you look at my signatures, I also own a 2008 Maxima that I bought brand new in 2008. It has had its own problems but has treated me well. I have owned that car for 11 years now and as of today, it has 254,000 miles and the car died on me about a month now. In my 11 years of ownership, I honestly do not think i have spent over $5,000 in repairs on that car though the car is dead now and I am torn between spending the quote of almost $2,000 to fix it or should I just junk the car? But it has sentimental value to me or I would have already junked it now. The car is dead and just sitting in my driveway now. Also, I do not wish to go and buy another car and have a payment on my truck and a car. Besides, I want a brand new car if I am to have another car. So, I have to pay off this QX before I buy another car, which will be brand new. I take my QX56 offroading a lot in Utah and Colorado, for those who have been to Moab, Ouray and Telluride. If you want to see my road trip and offraod adventures with my QX, feel free to look at my 4 road trips from my last road trip thread below. My yearly road trips with my QX56...
I respectfully disagree. That is the only way to know the actual answer. My wife is a lawyer and myself an accountant. We recently needed to move for work and needed to get out of our lease. I made sure to go through the entire lease for cancellation policies before calling them to discuss. It's not that hard if you scan through it till you find something related and then read that part in detail. But yeah, you got your monies worth, so that's good.
 
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238
Location
TX, USA
Thread starter
Originally Posted by hallstevenson
Originally Posted by PetitFrereArmada
...with broken front control arms, timing chain recall, needing new shocks, and some suspension parts. Total cost for it to leave the dealership was about $11,000!!!
Remove the timing chain work from the cost since you keep calling it a "recall". On the other hand, recalls generally only apply to safety issues and a timing chain (failure) won't fall under that.
Yes, the timing chain was a recall. And it was $4,000 that the dealership or say Infiniti paid for.
 
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238
Location
TX, USA
Thread starter
Originally Posted by JMJNet
A good service writer/manager will call the ext-warranty company first before performing the work. So, make sure you tell him to let you know if they reject the coverage. Case closed.
You are right. And that is what they always do. They always call me to tell me what the warranty will pay for before they do any work. But by the time the cost was already getting to 3 times what I paid, I have been worried the warranty will not pay. But they have always been paying for any claim the dealership calls to tell em they approved.
 
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238
Location
TX, USA
Thread starter
Originally Posted by Wolf359
As others said, it's in the contract. I doubt they can just cancel it. If they could just arbitrary cancel it, it'd make it a hard warranty to sell. It's basically an insurance product, some will have a lot of claims and some will not. Should have gotten a Mercedes, had mine for 5 years now and I don't think I've spent close to $3700 in regular repairs in that time period. And there's so many threads that push Japanese over German cars.
You know how it is with all brands of vehicles. There are always some people who may buy a bad seed in the bunch. So, I consider my suv to be a bad one from maybe factory or last owner abused it or I am just unlucky with it. Well, not really unlucky when I see my warranty company paying an insane amount of money to maintain it. I am just happy they keep on paying to get some things fixed.
 
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238
Location
TX, USA
Thread starter
Originally Posted by Irishman
I imagine that some of us would like to know the names of the 2 companies involved or at least a little more information about them. Thank you.
I don't mind sharing this. I don't know if you work for either of them or not, but here goes... My Extended Warranty is from Mercury Insurance and it is called Mercury mechanical Protection and my policy is the Deluxe. Mercury Mechanical Protection... I service my Infiniti at 1 dealership only and it is Sewell Infiniti of Houston. Sewell Infiniti of Houston
 
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238
Location
TX, USA
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Originally Posted by bullwinkle
I may get flamed for this somewhat, but my experience with Nissan has not exactly been stellar-and a big Q flagship SUV is probably the last thing on earth I would take off-road, they seem a little fragile (IMO). I would sell it or trade it in before I put any more $$$ in it, especially if your warranty gets dropped.
I love taking my QX offroading. Every year I take it offroad, people always get surprised. This year, I truly beat it hard again offroading. I just wish I could edit the videos I made and post soon and share it. I have more plans of taking my QX on many more offroading trips which can lead to more things breaking. The only problem is this full time job that I cannot easily take off from or I would love to take this rig more offroading than I have the opportunity to do now.
 
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238
Location
TX, USA
Thread starter
Originally Posted by madRiver
I am surprised the shocks, suspension parts and control arms were covered given they are wear items.
The shocks were not covered, but all suspension parts were covered. I had to pay $1,200 out of pocket for the shocks, but everything else was covered by the warranty. And in this my last service about 2 weeks ago that I took my car to the dealership for totally something else, they diagnosed that my engine mounts were not good and that I needed new wheel bearings on my driver side front wheel. Both things cost $1,950. My warranty paid for it. As of date, my dealership has replaced all 4 wheel bearings on all 4 wheels all under warranty. None of which I ever took my car to the dealership for any of those wheels giving me any trouble. I did not take my car to the dealership for those problems. The dealership just called me that these ar additional things that are wrong with my car and before I could say I am not paying for that, they always say your warranty has approved to cover them. To which I say ok.
 
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4,107
Location
SW Ohio
Originally Posted by PetitFrereArmada
You are right. And that is what they always do. They always call me to tell me what the warranty will pay for before they do any work. But by the time the cost was already getting to 3 times what I paid, I have been worried the warranty will not pay. But they have always been paying for any claim the dealership calls to tell em they approved.
What repairs that they find need done do you end up paying for ?
 
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