Hi i have a VW golf that is just 4 1/2 yrs old. When the VW warranty expired I was automatically contact by Warranty Direct, I had never heard of them before. My policy cost Â£23.00 per mth. After 15 months without a claim I decided that I was going to cancel the policy I paid a DD payment on 7th May, I Cancelled policy on 21st May, however paid up to 6th June 2010.
My turbo failed on car at just 38,000 miles RAC recovered me and confirmed via diagnostic test on 29th May that turbo failed. Took it to my local garage who confirmed the same. Tried then to call warranty direct, firstly told not covered, then told they had not received payment 7th May, then confirmed they had received the payment, then said bank holiday skelton staff to ring back and notes put on the system. The I called back another 20 times to be told, yes I was covered to 6th June, an operations manager would need to change status of my account as currently showing cancelled as I was still paid til 6th June, then I could submit claim. They never called back, then after lots of calls told that they cannot accept a claim off me at all as it was a cancelled policy even though I am paid up.
Then I wrote to then whilst policy was still valid, they told me that they would investigate and their decision could take upto 8 weeks, I need my car for work so was forced to pay Â£1100 to get car back on the road. They then said that they were investigating again, then they asked me for copies of my service history, MOT certificate, estimate and invoice. I send all these documents, then they sent a letter back saying that I was not covered as I had paid for the work without an claims authorisation code. I wrote back to explain that I could not get an authorisation code because they would not allow be to make a claim. I have now received a letter back to say that they can't pay because my car was serviced when I purchased at 10,000 miles without long life oil, the car requires a service every 2 years or 20,000 miles, 10,000 miles if long life oil is not used.
When I purchased the car from a VW garage and the service was carried out by VW long life oil was not used. The service light therefore would have been reset to come on after 10,000 miles, however it did not come on and I know nothing about oil.
However as a female who knows nothing about cars I had my car serviced when the light came on at 26202 miles in October 2008. Again the garage did not use long life oil. I have got my dad to top up oil when light has come on. Service light did not come on again. and my car had done just 38000.
Now the reason for their decision is that car should have been services after 10,000 miles meaning at 36202 miles and the car broke down at 38000 miles and no service light was on. Car had not gone 2 years since last service and car had only DONE Â£12,000 miles since last service.
So now saying not kept up service history. By the way car cost me Â£1100.00 to fix. They have screwed me, taken my previous, used every reason not to pay, this has been a stressful and upsetting situation, trying to deal with them is something I would not recommend. I am now seeking advice from financial ombudsman, but looking at various websites I am just one of hundreds, possibly thousands that have been duped by them.
They are quick enough to take you money, they don't require any evidence of service history or anything, they sign you up over the phone, I am gutted.
Why haven't they been shut down yet. Sorry about the rant, but please thick twice before you had any premiums over to this dicey company.
Review about: Warranty Direct Warranty.
Monetary Loss: $1700.