I purchased an extended warranty for my vehicle with Premium Plus coverage which is an exclusionary policy. That means all mechanical and electrical parts are covered unless they are specifically excluded in the agreement.
On September 18th, 2014 I submitted a claim to repair a coolant leak. National Warranty Corporation dispatched an investigator who determined that the metallic ""water pump housing"" had failed. It was not a rubber hose, belt, gasket, or other normal maintenance item. This part was also not on the list of excluded items but National still denied the claim stating that the water pump housing was not a ""mechanical part"".
The extended warranty contract does not define the word ""mechanical"" but I was told verbally that National Warranty only consideres it mechanical if there are moving parts involved. Merriam-Webster dictionary defines ""mechanical"" as (1a(1)) ""of or relating to machinery or tools"" and (1a(2)) ""produced or operated by a machine or tool."" This part meets both of those definitions. It definitely relates to machinery and was definiely produced by machine. The dicitonary listing also contains several other definitions but none of them require moving parts. Even if that was one of the definitions, it would not invalidate the other definitions unless it was specifically defined that way in the contract that I signed.
I paid extra for the exclusionary ""Premium Plus"" policy because I am a typical consumer and not an automotive expert. As such, it was easier for me to understand a list of what was specifically excluded rather than what was included. As a consumer, I must be able to rely on standard dictionary definitions when interpreting a business contract. I cannot be expected to somehow magically know before signing that the company will be imposing selective or fabricated definitions of their words.
In my opinion, this practice is both illegal and highly unethical. Buyer beware.
I bought a used 2008 Audi A4 from Toyota of Kirkland in 2010. I stupidly purchased a 'premium plus'/zero deductible plan from National Warranty Corporation, the plan that is advertised as "for maximum protection" in their brochure and as “bumper to bumper” and represented by ToK “an extension of the manufacturer’s warranty.” For this I paid $2,455.00. I wanted to keep my Audi until it reached at least 100,000 miles, and thought this would give the peace of mind they advertise.
In September 2012, I had a warranty claim, which was denied. I paid for the repair, at a cost of $508. I had no further problems with my vehicle (other than consumables) until my passenger side brake light went out in March 2015, and was not resolved by replacing the bulb. It turned out it was the bulb housing that had failed and needed to be replaced. I contacted National and was told this was not covered. I then asked Audi of Bellevue to intervene, which they did. They were able to “talk them into” covering it.
In April 2015, my thermostat failed. Audi of Bellevue called National Warranty. Hey, guess what? NOT COVERED. Nothing is covered! Everything is excluded or potentially excluded under the language of the contract. And it isn’t until you have a problem, that you realize how full of holes and useless this coverage is to anyone. If you take good care of your car, you won’t have the items fail that are supposedly clearly covered. And if you don’t take care of your car the way National thinks you should, and you have something fail that is a covered event, National decides that it was avoidable and due to lack of care, and therefore NOT COVERED. The items that do fail, and THAT WOULD BE COVERED UNDER THE MANUFACTURER’S WARRANTY, are not covered.
I paid for the thermostat repair myself, reviewed the contract and noticed a cancellation option. I called National on April 22 to cancel. I was told that I needed to contact the dealer from which I purchased the coverage. OK. I called Toyota of Kirkland and left messages April 22, April 24, April 27, and April 29. No return call. I called National again on April 30 and was transferred to their “Cancellations” Department. I spoke with Chris, who advised that I needed to contact the dealer. I asked her what one is supposed to do when the dealer won’t return calls. She suggested that maybe I should just drive over there. I told her that I was unable to “drive over there” to make a simple refund request. Finally, ToK called and said that they could maybe get the thermostat covered. I said that would be great, and then I would feel like I was getting what I paid for. Three weeks and several unanswered calls later, I asked that the refund be processed.
At the end of May, realizing that I would not in fact receive what I was sold by ToK, and would have to pay for any and all repairs on my Audi, I elected to buy a new car. I purchased a new Toyota (at another Toyota dealership, thankyouverymuch). When they tried to sell me an extended warranty from National, I declined and told them about my recent experience. The finance manager there was shocked – he stated that they “have a really good relationship with National” and are always able to get issues resolved/covered. He noted that if a dealership does not have a good relationship with National, they aren’t able to “make it work.”
National Warranty Corporation and its agents deceive consumers into believing that this is a valuable product for people who want to hold their vehicles long term. The sales people make statements like “bumper to bumper” and “extension of manufacturer’s warranty” and “peace of mind”, knowing full well that the product is not as they represent. Further, the contract is not interpreted uniformly. There are apparently some dealers who have “special” relationships with National, and that are able to obtain favorable outcomes for certain customers. If you are not one of those lucky customers, there is a loophole/exception for National to conveniently fall back on at every turn. And if you try to cancel – good luck. They make it extraordinarily difficult to do so. The refund formula they use is unfair and deceptive. I am probably one of the few people so angered by the whole sham that I was willing to jump through all the hoops, make repeated calls, email relentlessly and fill out the forms to receive my refund. Have I received a refund? No. Supposedly it’s in the mail. It’s August 18, nearly four months after my first request.
NATIONAL WARRANTY IS NOTHING BUT A SCAM. BUYER BEWARE!!!
National Warranty Corporation Reviews
I purchased an extended warranty for my vehicle with Premium Plus coverage which is an exclusionary policy. That means all mechanical and electrical parts are covered unless they are specifically excluded in the agreement.
On September 18th, 2014 I submitted a claim to repair a coolant leak. National Warranty Corporation dispatched an investigator who determined that the metallic ""water pump housing"" had failed. It was not a rubber hose, belt, gasket, or other normal maintenance item. This part was also not on the list of excluded items but National still denied the claim stating that the water pump housing was not a ""mechanical part"".
The extended warranty contract does not define the word ""mechanical"" but I was told verbally that National Warranty only consideres it mechanical if there are moving parts involved. Merriam-Webster dictionary defines ""mechanical"" as (1a(1)) ""of or relating to machinery or tools"" and (1a(2)) ""produced or operated by a machine or tool."" This part meets both of those definitions. It definitely relates to machinery and was definiely produced by machine. The dicitonary listing also contains several other definitions but none of them require moving parts. Even if that was one of the definitions, it would not invalidate the other definitions unless it was specifically defined that way in the contract that I signed.
I paid extra for the exclusionary ""Premium Plus"" policy because I am a typical consumer and not an automotive expert. As such, it was easier for me to understand a list of what was specifically excluded rather than what was included. As a consumer, I must be able to rely on standard dictionary definitions when interpreting a business contract. I cannot be expected to somehow magically know before signing that the company will be imposing selective or fabricated definitions of their words.
In my opinion, this practice is both illegal and highly unethical. Buyer beware.
SCAM. NOTHING BUT A SCAM.
I bought a used 2008 Audi A4 from Toyota of Kirkland in 2010. I stupidly purchased a 'premium plus'/zero deductible plan from National Warranty Corporation, the plan that is advertised as "for maximum protection" in their brochure and as “bumper to bumper” and represented by ToK “an extension of the manufacturer’s warranty.” For this I paid $2,455.00. I wanted to keep my Audi until it reached at least 100,000 miles, and thought this would give the peace of mind they advertise.
In September 2012, I had a warranty claim, which was denied. I paid for the repair, at a cost of $508. I had no further problems with my vehicle (other than consumables) until my passenger side brake light went out in March 2015, and was not resolved by replacing the bulb. It turned out it was the bulb housing that had failed and needed to be replaced. I contacted National and was told this was not covered. I then asked Audi of Bellevue to intervene, which they did. They were able to “talk them into” covering it.
In April 2015, my thermostat failed. Audi of Bellevue called National Warranty. Hey, guess what? NOT COVERED. Nothing is covered! Everything is excluded or potentially excluded under the language of the contract. And it isn’t until you have a problem, that you realize how full of holes and useless this coverage is to anyone. If you take good care of your car, you won’t have the items fail that are supposedly clearly covered. And if you don’t take care of your car the way National thinks you should, and you have something fail that is a covered event, National decides that it was avoidable and due to lack of care, and therefore NOT COVERED. The items that do fail, and THAT WOULD BE COVERED UNDER THE MANUFACTURER’S WARRANTY, are not covered.
I paid for the thermostat repair myself, reviewed the contract and noticed a cancellation option. I called National on April 22 to cancel. I was told that I needed to contact the dealer from which I purchased the coverage. OK. I called Toyota of Kirkland and left messages April 22, April 24, April 27, and April 29. No return call. I called National again on April 30 and was transferred to their “Cancellations” Department. I spoke with Chris, who advised that I needed to contact the dealer. I asked her what one is supposed to do when the dealer won’t return calls. She suggested that maybe I should just drive over there. I told her that I was unable to “drive over there” to make a simple refund request. Finally, ToK called and said that they could maybe get the thermostat covered. I said that would be great, and then I would feel like I was getting what I paid for. Three weeks and several unanswered calls later, I asked that the refund be processed.
At the end of May, realizing that I would not in fact receive what I was sold by ToK, and would have to pay for any and all repairs on my Audi, I elected to buy a new car. I purchased a new Toyota (at another Toyota dealership, thankyouverymuch). When they tried to sell me an extended warranty from National, I declined and told them about my recent experience. The finance manager there was shocked – he stated that they “have a really good relationship with National” and are always able to get issues resolved/covered. He noted that if a dealership does not have a good relationship with National, they aren’t able to “make it work.”
National Warranty Corporation and its agents deceive consumers into believing that this is a valuable product for people who want to hold their vehicles long term. The sales people make statements like “bumper to bumper” and “extension of manufacturer’s warranty” and “peace of mind”, knowing full well that the product is not as they represent. Further, the contract is not interpreted uniformly. There are apparently some dealers who have “special” relationships with National, and that are able to obtain favorable outcomes for certain customers. If you are not one of those lucky customers, there is a loophole/exception for National to conveniently fall back on at every turn. And if you try to cancel – good luck. They make it extraordinarily difficult to do so. The refund formula they use is unfair and deceptive. I am probably one of the few people so angered by the whole sham that I was willing to jump through all the hoops, make repeated calls, email relentlessly and fill out the forms to receive my refund. Have I received a refund? No. Supposedly it’s in the mail. It’s August 18, nearly four months after my first request.
NATIONAL WARRANTY IS NOTHING BUT A SCAM. BUYER BEWARE!!!