Extended warranty company refuses to pay for car repairs, costing customers thousands of dollars
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- เผยแพร่เมื่อ 7 ส.ค. 2022
- Channel 2 Investigates is looking into extended warranty companies that say they will fix your car when something goes wrong. Read the full story at bit.ly/3BPrz8I
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Better call Ice -T, he's the one that convinced you into the scam
My neighbor brought into the hype and was trying to convince us to join car shield. Now he's currently suing them. I'm glad we didn't sign up to be scammed.
Yep! Give Ice -T a ring.
😂
@@queennefertiti35 You mean you weren't a moron?
I'm calling Vivica Foxx now...
Extended auto warranties have always been a scam since it began in 2005.
@@user-gi8kg2yf1j So it's determined that the hydraulic lifters broke a piston in the engine, dealer says new engine, will my 3rd party Warranty company cover the $10,561 for the new engine? My warranty plan states $100 deductible for up to $10,000, I i would assume i'll pay the difference + taxes + the $100 deductible. If not i may have to request a full refund and then sue the company.
Nope. Bought an aftermarket warranty to piggyback the factory warranty back in 1985, basically doubling the length of the factory warranty. Next to useless and a horrible dealer. No major repairs fortunately. Several items the local dealer network had no clue about, paid an independent shop out of pocket to fix each issue. One such issue was a major driveability issue that went uncorrected for over a year as the manufacturer had given bad info to the dealers.
Depends on who issues the insurance. If from a dealer, it is much better than Car Shield who isn’t even allowed to sell in California
nope you just have to do your homework, after I bought a used 98 Grand Cherokee, I was offered a warranty from the dealer found another through the credit union half the price almost the same coverage, it paid for itself the first three month, a year or so later I bought another newer 97 SHO and bought one from the dealer wheel to roof bumper to bumper best add on investment, Car shield was never an option way too many horror stories thy won't pay for diddly
An extended warranty company is about as similar as a card shark out on the street that convinces you to find the black card, you NEVER find the black card otherwise he would lose money in every single game. Now you know how car shield works.
Wow! $110 monthly for nothing? Ice - T, where are you?
Counting his cash
I never liked that CLOWN, he looked kinda fishy ! And what do you know ? I was right all along !!! 🤔
This is happening all over the country with Car Shield and the others, where is the US DOJ and FTC on this?
They are busy go after Trump for BS
At the bank of coursre
FYI Bill O'Reilly advertizes CarShield. Just because a big name advertizes it, doesn't mean it's good.
Bill we'll do it live O'Reilly. A true American treasure that man
O'Reilly doesn't know his azz from his elbow!
Bill is a scam too.
I hope Ice-T is happy with his blood money
I guess you forgot all about the hoes he used to have out on the street
What gets me is the celebrities they have pushing this bs, they know damn well they don't use a warranty company to fix their cars they don't have too.
Just got back from our foot doctor, she was telling us about her Medicare Advantage plans and how the people who have them have very big deductibles and they told us up front that my wife's insurance (not Medicare) would not pay today, so we paid $518. Medicare cuts have been going up since Trump started them and others R's have followed suit. Corporations always win.
Liberal "celebrities" (in reality they're nobodies) push soft-on-crime/anti-gun agendas also, yet they don't mind using firearms in movies. Hypocrites! So why would anyone believer anything those fools say or sell? OR even care what they think?
Exactly. Ice-T is worth millions, so he doesn't need a warranty.
Extended warranty are a scam
In everything, including "home repair".....just save that money and use it when something breaks!
exactly there a scam …
These people that fall for this scam, also need to go after the celebrities that act as spokespersons
Celebrities don't do their research to make sure the companies they represent are a scam. All they look at are those dollar signs.
110 a month, or 1320 a year. Why not keep that in a bank getting interest for a car repair.
Exactly.
Interest?😂 u mean a couple dollars a year??
@@nunyabuziness8421 More than you will get giving it to carshield
It depends on the repair cause if your engine or tranny goes in ah year that lil money save ain’t gonna get you ah remanufactured one, maybe one from the junkyard with low miles🤷🏾♂️
Yep. Same principle as the $9.95 a month life insurance scam. But people line up and send in their money.
This happened to a customer of ours, the insurance company had us remove the engine and take it apart to find the actual damage, turns out it needed a motor, that was going to be nine thousand dollars the insurance company refused the claim and gave the customer back the money she paid for the insurance policy!!!! The motor was in pieces in the trunk of her car to pick up. they didn't even pay to reassemble the motor and put it back in the car.
Not surprised,
except for the fact that they paid $110/mo, that's crazy. Scamming, taking advantage of people, their needs to be a class action lawsuit.
There's a sucker born every second
It sucks people have to go through this. I always refuse any aftermarket warranty it has always seemed like a ponzi scheme to me. Hope these guys get the cars taken car of.
It totally baffles me that Car Shield is still in business!
Although people spend thousands of dollars on a iPhone with an installment period of 18 months and by the time the commitment is over, Apple has released two brand new upgrades, and the phone you just finished paying on. Mysteriously breaks after the warranty.
Car Shield is finding out it costs more to fix the cars than everyone paying that $110 a month
Do what the ice-T do
Thats just common sense. The people paying this ridiculous monthly payment have no one to blame but themselves. 110 a month is about $1200 a year. Just put that money away on your own.
That's not true what about customers who buy it and don't have anything go wrong for couple years? That's actually where they make their money
@@SL-pg4dh1200 can't even buy you a new transmission these days you got to save at lease 5 grand for car emergency like engine or tranny
The home shield type of insurance that is supposed to cover appliances, plumbing, etc., (items not covered by Home Owners Insurance) put you through the same ordeal, take your money and then don't want to pay. You are better off saving your money and paying for your repairs yourself!
Truth from experience.
No one should ever be asked to pay in advance for a repair service. Just a company wanting something for nothing.
Or, you can just get the same kind of appliances from Aaron’s or rent-A-Center, and then leave town with all the stuff before you have to pay them…. then do it again somewhere else
Going through the same situation myself right now throw a company called of all names Patriot warranty Gave them $1500 for a 5 year full coverage warranty A month's later I put in my 1st claim For a road hazard incident for a tire I've been waiting 3 and a 1/2 months and still have not received the check nothing but a run around scam Something needs to be done with these fraudulent companies that take your money and don't Produce any service back to the customer
There was an episode of American Greed where Extended Warranty company didn't cover anything and the guy was spending millions and millions and millions on homes, cars, boats, everything else, but they didn't cover any car repairs. They even sold an extended warranty to a retired elderly woman that didn't even own a vehicle.
I watched it and would never give 1$ to these kind of companies.
Yep that’s right I remember that
As PT Barnum once said. “There is a Sucker Born Every Minute”.
I would never EVER buy one of these extended vehicle warranties. It's better to just put that $110 per month aside in you savings so that you can use it just in case. Those places used to call me all the time trying to sell it to me and I said no to ever single one of them including Car Shield.
Yep that’s right they call me to over and over again and again but I refuse
Everything breaks is laughing in their sleep right now
They call me all the time.
Wanting info about my vehicle.
Tell them "you called me, you should have this info already."
🤔
Then when it’s time to pay they find every reason not to
@@finishfirst4580 And the mechanic doesn't have time to spend on the phone, haggling with them, about getting paid for his time, parts and labor
I had this same problem with Car Shield never got my car fixed
It's not a "extended warranty" it's a service contract...
Has nothing to do with warranty.
Sounds like a Ponzi scheme
This is why these companys can afford to air so many commercials on tv. They don't pay claims.
Exactly !!!!
Thank you for sharing this story
Everyone's going to be losing their money pretty soon but this one is hilarious. Who thought it was real in the first place.
The same thing happened to me!! Then to stop monthly payments they keep you on the phone for hours to make you hang up!!
Exactly! They bounce you from one person to another, you have to tell your story over and over, finally they say..."Well, let me get you to a 'cancellation specialist'....." after like 50 minutes of BS!
The government should get involved!
That's what democraps always say.
Sure. More government. That's the answer. Dumb $#*%
That would require the government to do its job. Which won’t happen in the US.
I always take their calls and keep them on the phone as long as possible with one question after another. They always hang up when I finally give them my car year and model, a 1909 Ford model T. 😂
I am a master auto tech, We dont accept ANY of the warranty company business. They waste your time, they run up a customer bill (we need you to do xxxx to diagnose and we dont pay for that) then deny the claim. Or they decide the repair is somethimg else or substitute a barely usable or unusable replacement unit, like junk yard transmissions.
warranties are BS -nothing new
I have learned a long time ago that the extended warranties doesn't worth because at the end nobody help you.
Yup, and they will do everything they can to get out of paying, sort of like insurance companies.
@@kendallevans4079 exactly
The work order on the Dodge Durango says that the customer was experiencing an engine knock noise. What do you bet that he ran it low on oil, and spun a friggin rod bearing, and that's why the warranty company doesn't want to pay for it? They won't cover repair expenses if the damage was inflicted by customer neglect. Too many people have a false sense of security when they own a newer vehicle, thinking that they don't burn oil, so they don't bother checking fluid levels when they should.
They said it about my car but my car was up 2 months from accident & I don’t drive but a few (14miles) to work daily…yet, was told by Service manager that the oil had nothing to do with head gasket-so what’s the real deal ⁉️
@@the1stempressthatstylistqu592 Head gasket isn't part of the engine's lubrication system, rather the engine's cooling system. If you ran it low on coolant or the thermostat stuck in the closed position, you're going to overheat the engine and more than likely will cause a head gasket failure. Head gasket failures can also result in coolant seeping into the combustion chamber and past the piston rings eventually finding its way into the engine oil inside the crankcase.
Seems like you know more than the mechanics that diagnosed it and the warranty company that did not say what you said without knowing anything. I get that everyone has an opinion and you are surely entitled to your dumb conclusions based on not knowing the facts.
Yep that’s right nobody wants to get their hands dirty for checking the oil dipstick and now they are walking around looking like a dipstick.if you don’t check the oil then change the oil and filter
@@bjvu9460 Well, before you go throwing around insults like "dumb", I would seriously reconsider who the dummy is, which would be consumers like yourself and others who allow themselves to get coerced into buying these extended warranties by some fast-talking greasy finance manager at the car dealership who promise the world, just to make you feel better about your car-buying decision. (Oh, by the way, that finance manager also gets a commission for selling you these extra products). Too many uninformed and over-confident consumers don't bother reading the fine print (particularly the exclusions portion of policy) to understand what's NOT covered. One of the first things the mechanic shops do before determining whether or not they're going to cover the repair cost is to rule out customer negligence. Even before disassembling the engine, they check fluid levels (oil & coolant) to see if it's low or near bone-dry. After disassembling the engine, they summon the warranty representative for further inspection of the damaged/worn parts, then determine the probable cause. That process could take days or weeks, depending on how busy they are. The dealership garage doesn't care who pays them, but they want assurance that they're going to get paid for the work. If they conclude that the damaged engine was due to customer negligence, the warranty company bows out and denies the claim, and now you're stuck holding the bag.
Now WHO could have foreseen this coming?
Just had the same issue with Endurance. Had my car in the shop for 2 months paying $165/month to then tell me they are unable to fix my repairs. So now I’m out big money and no one to pay me for the damages and time spent
That’s not covered sir!
There should be a class action lawsuit against Carshield they are the worst I have ever seen, I had all the same exact issues from beginning to the end. I'm just waiting on the lawsuit cause I definitely will sue them, Ice T should be ashamed of himself for using his face for this company.
😂gotcha!
Vivica a fox is no angel in this scenario either
I worked for a major European car company for years that started the Certified Pre-owned programs. We had to go through a car with a service history inspection, 160 point inspection, Carfax history report, a previous body repair inspection, since Carfax only shows something if it is reported and bring all the required services up to date before it was able to be certified. Thinking that some company is going to insure you for repairs on a car that they have no history or for that matter never seen is ridiculous and especially for $140 a month is laughable. $140 barely covers the price of an oil change these days. Take that money and put it in the bank and self insure. with 45 years in the auto industry I can tell you do not buy these warranties they are a scam.
My warranty has actually been working, thankfully. I had the Check Engine light turn on and then my steering column broke and my warranty handled both.
I use GWC.
No surprise. Same kind of thing happens with home warranties.
Remember, if it sounds too good to be true then?????
Man i dogged the bullet. I signed up for warranty with this company but canceled it a few days later and the rep on the phone begged me like a dog for a bone to stay making all sorts of claims that other companies will promise all kinds of coverage and will not pay for them. Looks like they are the real crooks. Besides I’m always skeptical of any company using “ celebrities “ to push their products when we all know they don’t even use the damn products themselves but just in it for the money. They’re all damn crooks like the insurance companies.
With me Car Shield hounded me everyday for 1-2 months & it is said they will keep taking money on your credit card!! I cancelled my credit card & they did not like that because their little gravy train from me derailed!!
Have to admit the one where t opens the body bag with a transmission inside was kind of funny
Think about it folks.....if you save that monthly $ yourself you will have more than enough to pay repair bills when they come up! These people never intended to pay for anything from the start.
There is one thing that people might overlook is in the extended warranty contact , it clearly says that the warranty will not cover a failure due to a vehicle is not maintained properly . They think when they buy the warranty they won't have to do tune ups , replace wear & tear or top all fluids or timely oil changes .This is not how it works .
And this is why if you come to me with extended warranty you will be asked to leave and you better leave
Not surprise I have heard this story before, we once in a while get offers in the mail you are money ahead to throw the offer in the trash.
i was asked if i wanted an extended warranty when i bought a toyota back when they were dependable and said to the dealer " why would i need an extended warranty , is toyota known for being reliable ? Are you saying you don't have confidence in your product ? "
the dealer stammered for a moment , went silent and moved onto accepting my cash payment .
I had Car Shield & only one time for a fuel pump but for engine, transmission seals, wheel bearings, they said they don't cover them, though they advertise they cover over 5000 parts!! I no longer have them BUT they were calling me everyday for 1-2 months to get me to pay!! 3-4000 dollars paid to them in premiums over 3-4 years!! NO MORE!!!
keep an eye on your fluid levels and tire pressure and you will have few car troubles
I'm also going through this same issue... my car been in shop for 8months and extended warranty finally decided to deny my claim due to the dealership selling me a car that is not lubricated enough. The job cost 8k to fix and I only drove it for two days. The car cost 16k in total and I down 10k and have been paying for insurance, car bill and loan...
This is why I don't buy extended warranties from any other than the dealer; on appliances or expensive items, I always decline extended warranties. I figure when they break down, if I can't repair myself, I buy a new one.
I have CarShield as well. Took months to get my truck repaired because they wanted to take the cheap route on parts. After getting the wrong parts the correct ones finally came in. It ended up costing them more than it would’ve to go with OEM parts!
They literally source parts from junkyards
Anytime you see a celebrity advertising something you know it's a scam.
Which is why we should have a big discussion with Shaquille O’Neal
These are basically just insurance policies, which means they can approve or disapprove, and 9.9 times out of 10 the latter sadly happens
Customers should send bills to ICE-T!! None of the shops or Dealers near us will accept Car Shield or Endurance!!!
I am relentless on checking my oils in my cars every weekend and if I go a long distance I check my oil every time I stop to get gas
Stop calling my cellphone I don't have your warranty.
I always knew this was a scam on how they find your number and call you😂 and I never heard about it by word of mouth...so its been 3 or 5 years and now the truth shows...
You can thank overpaid attorneys for the grief.
I can’t believe that Ice-T doesn’t regret doing those Car Shield commercials. He must be getting the “business” every time he leaves his house from unhappy Car Shield customers.
He should have regrets, look who he married
When you buy a used car 4 or 5 years old you have to check the engine oil every other trip to see if oil is burning or leaking out
Factory extended warranties are what you want to buy. Not the aftermarket ones, especially the ones that are on TV!
Just happened to me 6/17/22 and the mechanic drove my car for 45 miles before telling me it was head gasket. When Courtesy Dodge dealership (Christy)told me to pick up car because nothing was wrong?! 3.5 hrs later it was “engine” after Protect my car told them to write it off as “engine” because they don’t repair head gaskets⁉️‼️
Read the fine print.
“Pledged to research”
He meant forget about you the second he got off the phone 😂
how much for headlights?
I was a victim of this smh how do I file my claim
Sad
Never get an extended warranty. Doesn't matter which company, none of them.
Does anyone know anything about Mepco extended warranty??
Sad!!!!!
Put that money into an account. When your car breaks down you have it
The only way I can tell you to try and be able to get some money back or some thing is to take car shield to court and show all your findings. I had a friend that actually had this problem and she took them to court with her lawyers and she won, so if you have all this crap documented and all the paperwork, the car shield sent you and the mechanic and keep all the stuff your mechanic said to because in civil court, you need all the proof you need in the system. This is a civil matter.
My truck blew a motor. Alpha warranty I have. They wanted shop to put a cam and rebuild top. Shop refused to do so because medal has been throughout engine. And they wanted shop to hold warranty on that. After a month now they shipped a new motor. And said it was drop in ready. Well it wasn’t, now I have to pay $2,800 outta my own pocket for other parts like headers, water pump etc. to put on the new motor as shop advised me not to put old ones from old motor on it.
Dont ever buy a warranty on a used car. Save the money you would of paid them and just fix it your self. They even charge you interest on the warranty. Its the biggest hustle people get trapped into doing.
I had them on my Kia Soul for a while but let it lapse I still get mail from them but just shred it. Now with these news coming out I did good in dropping them.
Extended Warranty Scam
Gee who didn't see this coming....
Thank you lord for allowing me to be able to build an automotive shop of my own.
How do you not know it’s a scam?
No point buying an extended warranty. They always find an excuse or loophole not to pay. Take the extra effort to buy a good car and drive responsibly
( I have a Suzuki gas, manual since 2006. In great shape)
Recently my D wanted a 2w. I saved money by saying no to an ext warranty from the dealer.
Everyone should open up a seperate account at the bank and put the money in an account. They would be better off. Extended warranties an well as reverse mortgages are nothing but ripoffs. The only ones getting paid are the celebrities endorsing these products,and unfortunately, people fall for it.
I’m one of them that bought mine at the dealership when I bought the car.
Same ripoff. I foolishly did this as well. Then it finally hit me, this is a brand new car and I'm the first and only owner! 60,000 miles later and not one need for a claim. Lesson learned.
Car shield seems to have a bad reputation?
Quickest solution.
Small claims court (only if your state limitations are high enough to cover it.
Same thing happened to me
When I had my shop I turned down work on cars with extended warranty. I lost money in diagnosis time and time to call them. I’d estimate 95% of the work was declined. The one job I did pick up was a Honda transmission. They warranty company sent an estimator who didn’t even know what the insides of an automatic transmission looked like.
That’s no big deal, the former secretary of education, never stepped foot inside of a public school in her life
So...like regular warranties?
Yes just like regular warranty,, it's still required of maintenance services on scheduled. If you skipping transmission or engine oils services and damaging occur,,you're on your own
Those extended warranty services should be not allowed to do business!
I didn’t even know people actually still buy *extended warranties* on ANYTHING after all the warnings about it being a scam over the years. 😂 Even when you buy a $30 microwave at Bestbuy or Walmart, they’ll try to sell you ‘extended warranty’ when the product already comes with decent manufacturers warranty for at 1-10 years. You’re basically giving a company free money because you’ll never make claim in that warranty and if you ever do, they won’t pay.
At the bottom of the TV add says not available in California, guess California learned not to do business with them.
Here in Canada there are many products coming up from the States that are banned in California.
You might not see that international labeling.
I researched these plans/programs when they 1st came out. I sensed then It Was To Good To Be True. I just keep FULL COVERAGE INSURANCE on all my vehicles. Plus put a bit of $$ each month into a ssvings account for damages that occur Not covered in my auto insurance policies.
On my fathers' deathbed, he said, your mother and I bought insurance when we got married and kept
paying for insurance for everything, but we never had a claim. That's a very Scottish sentiment.
Full coverage doesn’t cover mechanical repairs only accidents. However, there are some insurance companies like Gieco that cover mechanical repairs if the vehicle is bought brand new
@@lionedheartI think you misunderstood "FULL COVERAGE". I had a busted radiator that caused my car to continuously overheat. I also had a $300 car payment. It was my "FULL COVERAGE" that took care of the problems.
i refuse to buy warranties and insurance anymore except health insurance and liability insurance which are basically mandated now. anytime i have had a claim in the last 20 years they have been denied.
Put the $110 in a savings account and use it when you have car trouble.
Car Shield is so bad, they aren't allowed to sell in California.
Love that but they'll always charge more,insurance does the same thing
MORE than enough blame to go around on this issue. #1 Nearly 100% of the time, the customer does NOT know what they are buying. #2 The shop MUST be savvy in their reporting to the Warranty Company AND must be honest with the customer. As a repair facility I have these two items every day. #3 As a consumer I bought the power train warranty BUT I also understand that if the issue IS NOT inside the engine or transmission the Warranty company DOES NOT pay for a darn thing. I work with about 3 companies that I have no issues with. I warn customers on other companies (Car Shield specifically) that I will charge $1.00 per min, for every min I speak to THEIR choice of warranty companies. NORMALLY takes 3 calls of about 45 mins each, and the Warranty company WILL NOT reimburse them. I have spent MORE than 6 hours on the phone with a warranty company, and expect to be paid for using the customers choice of payment. We also offer to work under THEIR warranty company guidelines, and LET THEM get reimbursed. Let them spend the time with the warranty company. Like I said, their is plenty of blame to go around!
Never buy anything advertised on tv.
Sage advice! Or celebrity endorsed.