In 2013 my sister bought a 5 year $2072.00 extended warranty from Interstate National Dealers Services, Inc. for her 2008 Ford Escape with 90,085 miles. The warranty expires in Dec 2018 or 191,085 miles, whatever comes first. Car currently has 130,000+ miles and a burnt exhaust valve that they won't cover, about $2000 repair. They are saying that a burnt valve is normal wear and tear, and I say it's not.
https://www.pdffiller.com/en/project...42&reload=true
The warranty (page 3, letter A.) says it covers valves, but in the exclusions section (page 6, letter B.) it says it will not cover worn out parts due to normal wear and tear. They are referring to this as reason to deny the claim. So I guess the question is - is this normal wear and tear or not? Another interesting exclusion is ( page 7, letter J) saying that they won't cover the part if it hasn't failed.
In the warranty it says that disputes may be settled by non-binding Arbitration, and that both parties must agree to this. Does that mean all they have to do is not agree to Arbitration and it goes nowhere?
If they can call everything wear and tear, what would they cover? What legit business would sell a warranty that doesn't cover anything to a single grandmother? Seems like a scam to me. Any thoughts or suggestions on how to proceed? If Arbitration is the best course, how do I start that, how much is it, and any Arbitrators you would recommend? Thanks
02-10-2017, 05:47 PM
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