ALPHA alpha warranty services false pre exsisting condition claims denied drapper, Utah

Let's get down to it. A warranty company would not be in business if they are honoring claims all over the place.

The issue gets down to the wording of the contract, and in this case it is the determination of what is a 'pre-existing condition'

Are guidelines published on this?

Let's take for example engine coverage.

You buy a used car, car is driving fine.... then at some point let's say 3 months after you purchased your engine pistons misalign, and you now have a clunker.

Now most people who read their contract would assume that the fixing or replacing would be covered under this extended warranty.

If however there was a leaky gasky or misfiring cylinder that a typical consumer may or may not be aware about on these grounds then under the 'pre-existing condition' you may not honor the claim if you can 'reasonable' assume this issue may have been present on the car at time of purchase.

As I said in the beginning, you are not in this business to give out money, but rather to make money.

We strive to treat every customer with fairness and respect.
Whenever a claim is denied it is because it is not covered under the terms of
the customers contract. Every year we
have thousands of satisfied customers that have peace of mind knowing their
repairs have been covered under our vehicle service plans. This claim was
reviewed and determined to be a pre-existing problem.

This customers contract had a 30 day/ 1000 mile pre-existing
period. He called in 10 days and 221
miles after his pre-existing period expired with the complaints of a whining noise
in the morning, a shudder in the steering, and a ticking noise under the hood. All of these problems he said he noticed when
it got cold, which he said was a couple of days ago. The mechanic diagnosed a leaking power
steering rack.

The customer did send in a record from a 60-point inspection
that was done before he purchased his contract. However, there was nothing documented stating what was checked to know if
the leak was there or not and he failed to provide us anything demonstrating
what was inspected.

An inspector from a third-party company was sent in to
verify the failure. The inspector is a
certified mechanic. When looking at the
leak he stated: all leaks appear to be
long term with road grime build up. We
also had our master technician look at the report and the pictures that were
taken and he also determined this leak was there for longer than 10 days
because there was build up. This leak in
the power steering rack was not something that occurred in the last 10
days. The customer may have noticed the
noise after his pre-existing period had expired, however his contract clearly
states that a failure is pre-existing if its condition may reasonably be assumed to have existed prior to the sale
date/miles of this contract or prior to the expiration of the pre-existing
period.

We are following the terms of the contract and even sent in
an inspector to verify that this problem was pre-existing. Unfortunately, some people do purchase our
service contracts with the intent of filing claims for failures that already
exist on their vehicles at the time of purchase. When problems arise, we advise
customers to please contact us directly so we can help resolve their concerns.

AWS maintains the cleanest reputation in the vehicle service
contract industry. A simple search of competitors in the industry will
demonstrate that AWS maintains the best image and lowest number of complaints due
to our commitment to customer service and strong business values.