- Oct 23, 2002
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Most all extended warranty companies work this way. They dont just write out checks. I worked for a few extended warranty companies as an inspector to go out to verify problems when shops would call in asking for authorization for repairs. Dont get the idea that warranty companies are crooked (some are), but there appear to be even more dishonest owners and repair shops. Ive seen some owners switch transmissions with their secondary similar car to get a transmission covered under warranty. Ive seen shops turn in completely fraudulent claims on the basis to split the insurance money with a friend. This is why insurance companies paid me to go out and review and inspect the claim. I will say that over 90% of the claims were honest and fair, but you get those few customers that lost their job and are looking for a quick buck, or a garage that had a bad month and cant make payroll. So, yes, extended warranties can be a blessing, but extended warranty companies often will prosecute for insurance fraud when it is obvious fraud.
I agree the warranty company needs to protect itself, but the shop has spent two days taking out the transmission and fully disassembling it? Are you serious? The thing that really doesn't add up is this Toyota dealership sells this aftermarket policy. Why would a dealer risk its profit from selling these aftermarket warranties for a faulty transmission?
Tomorrow the adjuster is coming in to look at this transmission. Hopefully I get a call and they cover it.
