Interstate, Warranty Direct will not pay claims or use correct parts Uniondale, New York

After purchasing a used 2002 Saab 9-3 in early December, 2005 I decided to purchase an extended Warrantee purchased through Warrantee Direct obligated by Interstate National Dealer Services, Inc. I had two claims early that although there were substantial difficulties submitting, Warrentee direct honored them: frozen rear calipers and a seized air conditioner pump.

On January 3rd, 2008 I took my 2002 Saab 9-3 Sedan into an authorized Saab dealer to investigate a pulsating that has been intermitently noticed for approximately 9 months particularly when accelerating up steep hills. This was eventually determined to caused by a faulty drive shaft. While the dealer was test driving the vehicle the power steering pump failed.

The following items were determined to be failed on the drivetrain: CV joint, CV joint boot, and drive shaft. Interstate told the dealer that they would cover the boot, but attributed the failure of the other components to the leakage of grease from the boot and therefore my fault for not having it addressed in a timely manner. During the time that the issue was intermittently noticed, the car has been serviced by the dealership - I had even previously once mentioned the pulsating and the dealer could not re-create it. Inspecting / replenishing the CV boot grease is part of standard Oil Change Service (Lube, Oil, Filter).

For the failed power steering pump, Interstate has determined that they would only pay for a remanufactured power steering pump from NAPA auto parts. The part specified fails to meet the specification of the manufacturer and the initial part delivered from a local NAPA auto-parts store was faulty and had to be returned. A replacement part had to be shipped from Pennsylvania and took a week to ship by ground (which was the fastest shipping for which Interstate would pay). Interstate again refused to install the Saab part despite the delay in the repair.

When I inquired about an auto rental for my loss of use (also covered by the contract), they offered a single day rental which they purported was appropriate since it was the standard length of the repair despite their contribution to the delay by insisting on deeply discounted parts delivered via ground shipping.

The total for these repairs was $1,281.04 of which I had to cover $949.71 for the drive shaft and CV joint. I was not able to use the vehicle from January 3rd until January 17th. Interstate contributed $331.33 for the Power Steering Pump and failed CV boot and associated labor.

One of the main purposes of an extended warrantee is to cover major components that may fail in the Power Train and I found it quite disheartening to find that the Drive Shaft was not covered. Interstate Auto Dealer Services web-site Warrantee Direct presents deceptive advertising.

I had presented this matter to the Better Business Bureau, State of Massachusetts and New York Attorney Generals, but Interstate refused to make any accomodations.

I wouldnt recommend that anyone do business with Interstate.

George
Sudbury, Massachusetts
U.S.A.