The Auto Warranty dba AWA Services Grp REDUCED REIMBURSEMENT ON MY EXTENDED WARRANTY SERVICE CONTRACT Salisbury Maryland

I purchased Vehicle Service Contract with AWA Services Group on 1May2014 for my 2016 Merecedes Benz S430 AWD, with a term of 48,000 miles (117,289) or 48 months (30Apr2018) coverage, whichever comes first.

On 09April2017, while I was driving, the vehicle's instrument cluster went dark.  The following day (10Apr) I took my vehicle to German Auto Group (GAG), 7520 Backlick Road, Springfield, VA to have the problem checked and was told to leave it at the shop to be diagnosed before the end of the day.  I was informed by Sammy (GAG) that the instrument cluster needs to be replaced and that he informed the Vehicle Service Warranty Company on my repairs Claims Department (800-871-0467) on 10Apr.  Sammy was told by the company that they will send a warranty company representative the following day (11Apr) to confirm the need for replacement of the instrument cluster.  Their representative came 11Apr and verified the need to replace the cluster. 

That same day, Sammy was told by someone from the warranty company that the company are only responsible for paying what it would cost them to get and ship the available used instrument cluster (costing $600, plus $142 labor), vice $1432 for a new cluster, $150 for programming data from a local Mercedes Benz dealer, and $297 for labor and diagnostics.  I was informed by Sammy that the warranty company (AWA Svcs Grp) will only pay them $780.90, minus the $100 deductible I was responsible for.  Sammy gave me the options of accepting the offered used instrument cluster by AWA Svcs Grp) or having a new cluster from the dealer and I will have to pay the difference.  I asked Sammy (GAG) to wait until I have a chance to discuss the issue with AWA. 

I called AWA (800-871-0467) to find out if they can tell me how much mileage the vehicle had where the instrument cluster came.  I was told that it had less than 105,000 miles my vehicle had at the time.  It made me decide that the second option (paying for a new cluster, programming data, plus additional labor) will be my best choice, since my warranty will expire Apr2018.  So, AWA paid GAG $680.90 and I paid $2,317.48 to include $851.53 for Change Oil, Brakes, and Transmission Services parts and labor.  The justification provided to me by AWA representative id the "BREAKDOWN OF COVERED PARTS on the contract that indicates "The Administrator will reimburse You for the reasonable costs to repair or replace any of the covered parts listed in thisd Service Contract if required due to a mechanical breakdown, hereafter referred to as a "loss".  Coverage applies to those parts listed in the Plan Coverage Section, and includes labor time any applicable taxes.  Coverage does not apply to gradual reduction in operating performnce of parts due to wear and tear.  Damaged parts may be replaced, depending upon availability, with like quality (LKO), use, rebuilt, remanufactured, or new parts.  The Administrator at all times reserves the right to select method of repair.  Dollar amount of authorization will be based on selected method of repair.

The "electronic instrument cluster" is included as one of the HI-Tech Electrical parts covered.

I also inquired about submitting the AWA Claim Authorization and Payment Form and the German Auto Group (GAG) Repair Order# 0046428 Form for Arbitration, with Royal Administrator (Ms. D. Okeefe) on 20April2017.  She informed me that I might end up paying for the arbitration costs (if I lose), so I decided not to ask for Arbitration process.  I also inquired if I will get some money back if I decide to cancel my remaining 12 months warranty.  I was informed today, via voice mail from Royal Administration, that I am not entitled to any reimbursement for cancelling early due to my recent claim.

Based on my experience with AWA Services, I would like to advise people looking for extended vehicle service warranty to avoid getting coverage with AWA Services Group.  The "instrument cluster" is definitely listed covered as one of the HI-Tech electrical parts on my service contract.  It should not be considered as "parts due to wear and tear" to be replaced with LKO, use, rebuilt, or remanufactured parts.