Carchex Alpha Warranty Services Carchex tried to buy my silence about my experience! Hunt Valley, Maryland

Back in December 2008 I purchased and Extended Auto Warranty from a Carchex representative.  I was not allowed to view the terms of the warranty but I was told over the phone that it will cover most all possible problems with my vehicle.  I also purchased the upgraded package that provided coverage of ALL seals and gaskets.  I ended up paying $1900.00 for this policy.

Over the years I never had a single issue with my car that required me to file a claim.  Then in November 2012 my check engine light came on and I immediately brought the car to my mechanic.  It was after 5pm on a Friday and he would not be able to do anything for me until Monday.  We determined that my car was leaking coolant and so we added coolant and agreed that I would bring my car in the following Monday so he can take a look at it.  My car was a 2005 Chevy Equinox and it only had 63,000 miles on it.  I took very good care of my car and I obviously didn't put many miles on it.

That Monday when I brought my car into my mechanic he determined that my car was leaking coolant somewhere and we contacted Carchex and Alpha Warranty Services to open a claim.  My mechanic told them my car was leaking coolant into the engine because there were never any puddles under my car.  Carchex and Alpha Warranty Services told him to perform a complete teardown of my engine to determine the cause of the leak.  My mechanic has many years of experience dealing with Warranty companies and he told me that if he tore down the whole engine like they requested they would deny my claim and make me pay for the whole repair which would cost upwards of $3000.  He only did a partial teardown and determined I had blown my lower intake gasket.  Since I purchased the coverage of all seals and gaskets on my policy I was hopeful that the repairs would be covered.  I was wrong.

Carchex and Alpha Warranty Services flat out refused to cover any costs of my repairs (which was only $978.00) because they considered the damage to be caused by overheating.  They never offered to send a representative out to inspect the damage, and they never offered a reason as to what caused the overheating.  In my mechanics and my opinion the gasket blew and this caused the coolant to leak into the engine, thus causing the overheating.  Since my package covered gaskets I should have been covered but I was continually denied over and over again by Carchex and Alpha Warranty Services.

Finally after debating back and forth with a Carchex representative about my claim, Carchex COO Ben Fenlon contacted me directly and told me that during their investigation of my claim they found many improprieties by Alpha Warranty Services and they admitted that they never offered to send an inspector out to view the damage to my vehicle.  He also stated that all phone calls to their customer service department are recorded, but somehow they "lost" the recordings of some of my phone calls.  Due to this he offered to reimburse me half the cost of my repairs.  I agreed but then he told me he was going to send me a contract to sign in order to facilitate my reimbursement.

I looked over this contract and they stated that they were willing to pay me for half of my repair bill if I agreed to not disclose the terms of our agreement and waive my right to speak or post on social media about my experience with Carchex.  I saw these terms and flat out disagreed.  It's my right to spread the word about my experience.  Carchex is an absolute ripoff and a scan.  I paid $1900 and file one claim for $978 so they still made money off of me.  I purchased coverage for gaskets and seals and yet they still deny my claims.  Their whole coverage is a scam.  They will not cover any damages to your vehicle because they will always use the "overheating" excuse to deny peoples claims.  This post here has cost me $489.  If you don't believe me I will forward you the contract that Ben Fenlon sent me. 

I urge all of you to avoid purchasing any extended auto warranty from Carchex and Alpha Warranty Services.  They are a complete scam and are not interested at all in helping people.