American Auto Guardian, Aka: Wheelz Auto Warranty Underhanded business practice, poor customer service Arlington Heights Illinois

I purchased an extended auto warranty policy from this company when I bought my new car in 2002. The policy was supposed to be the 'Ultimate Coverage' with zero deductable, costing a premium, but with the miles I drive I thought it was worth the cost. When I did need the policy I found this company to be more than difficult to work with.

1. The adjustor accused my mechanic of lying - actually said that the claim sounded false and initially refused to pay for the parts. After a shouting match in the phone and an offer to send the parts to them, he relented and agreed to pay for the parts.

2. They refused to pay the hourly rate charged by me mechanic. Nowhere in the contract does it state that there is a 'cap' for hourly rate on service - there wasn't even fime print to read - but they have one. When I called to complain, the adjustor (who would not give his name) told me it was their policy to cap the hourly rate at $70. When I mentioned that this was not stipulated in the contract and unreasonably low for the area I live, he said that they didn't need to spell that out. They are in rural Illinois and I am in the San Francisco bay Area - quite a spread in cost of living - but they use the average cost of service in their area as a basis for coverage.

3. They charged me a $100 deductable when the contract clearly stipulated 'no deductable'.

I filed a complaint with the BBB and after over a month of rangling was able to get payment for the deductable, but no increase on the hourly rate costs.

Bottom line: Beware of this company - they do not fully disclose coverage limits and will do whatever they can to avaid paying a claim.

David
San Jose, California
U.S.A.