Engine Rebuild Covered Under AFTERMARKET Warranty?

[Ldiggs910]

I have aftermarket warranty coverage provided by Warranty America. It is to the point now that I've had enough things fixed under warranty that the amounts paid out had at the very least, equaled the amount I've paid for the warranty.

The last time I had an issue, they refused to replace a warped flywheel (which IS listed as a covered component) because they said it was caused by a failing clutch plate. My mechanic argued that it was the warped flywheel that caused the clutch to fail prematurely.

They countered that I was operating the transmission incorrectly and caused the flywheel to warp. It had shiny spots on it due to abuse.

Whatever. So how the warranty works is the company will cover the cost of the breakdown and repair of the component IF it is a covered component (which is why I had my beef with them about the flywheel).

The last time I took my car for service (and my X burns about a quart of oil every 800 miles now) I had my mechanic change the plugs.

One of the plugs was drenched in oil! So this is where my hesitation problem was coming from. A fouled spark plug. My question to you guys is, has anyone ever had an engine replaced/rebuilt under an AFTERMARKET warranty? I know BMWs various warranties would apply but what happens when the cost of the repair vastly exceeds the amount one paid for a warranty?

[Ldiggs910]

I left out that my mechanic says the engine is burning oil in the combustion chamber, either leaking rings or seals, both of which are covered under the warranty. My fear is that I'll give authorization to open it up and diagnose and then the warranty company will deny the claim and leave me holding the bill.

I'd rather drive it and add a quart every thousand miles than get stuck with a $5000 rebuild bill on a 9 year old X. And they dont tell you if something is covered until the mechanic opens it up and they send their inspector out to see that the part is indeed defective.

[killcrap]

your mechanic should be able to do a leakage test to check the rings. 100% there is nothing wrong with it, as all x5 3.0L have high engine oil consumption. and if the plugs are all oily, then i would suspect the valve cover gasket is bad.

[///Bruce]

You might run into a problem with your warranty company with them stating that the engine, although not working at 100% efficiency, is not BROKEN. And, therefore will not cover it.

Been there with a dying turbo. I was told that it wasn't dead. I came back and said that if it does fail, it would take out the engine and theat would cost them more. They said if that happened, they'd worry about it at that time. You see my (and their) logic here? Good luck.

I would recommend you have the Service Manager, or owner, state your case for you. Not the mechanic.

[Ldiggs910]

gotcha. Well I do have a wear and tear option on my warranty that I paid extra for. It dictates that a part or something doesnt have to be completely defective yet to be replaced, only ABOUT TO fail. And only one of the plugs was covered in oil and its not the top porcelain part of the plug that was covered in oil. It was the part with the electrodes.

But Bruce, the warranty company really wont deal with the dealer or its expensive costs. They only deal with reasonably priced indies.

[///Bruce]

Forgive me, but what do you mean they won't deal with a dealership but only "reasonably-priced" independent mechanics? That is such a bunch of crap (sorry, I mean shit).

As I can see it, you have two choices: First, have the dealership recommend a reasonably.... Second, call the warranty company and have THEM recommend someone.

Good luck.

[JCL]

Sorry, but your warranty company response sounds very reasonable for the damaged flywheel. The flywheel wasn't defective (which is what your warranty covers) but was damaged by heat. That makes it a user issue.

As for the oily plug, killcrap already provided the most likely reason. When the valve cover gasket leaks, oil runs down and sits around the plug. It isn't deep enough to get the porcelain oily, just around the threads. When you take the plug out, the oil runs down and the threads and electrode get covered in the old oil. Not uncommon at all.

If I was you, I would be looking for a new mechanic. Has he even checked for an oil leak around the plug, before concluding that he needs to rebuild the engine? Did he do the test killcrap suggested, or use a boroscope to determine what it looks like inside the cylinder? Start there, and don't plan to rebuild your engine.

[///Bruce]

I won't comment on the flywheel issue. But, JCL does have a point regarding the valve cover gasket leaking. It does happen as the engine heats and cools over time and mileage.

But in defense of ldiggs, he stated that the electrodes were wet and not the porcelin. It's easy enough to determine where the oil is coming from. I might suggest you check this out first.

[amacman]

re the flywheel , bmw fitted a clutch delay valve in an attempt to stop the clutch getting destroyed but , who knows what driving situations you encounter .
re the spark plug , there is the possibilty of crank vent oil separator causing this .

i agree with killcrap and jcl , do the tests and have another opinion .

[m5james]

The aftermarket warranty I got on my 7 replaced the engine (custom and modded rebuild was cheaper than stealership) and diff (blown-out doing the dead stop 180 in my avatar pic ), so I think I got my moneys worth out of it.