Complaint Review: Accurate Warranty Services LLC - Hallandale Florida

CDWS (Consumer Direct Warranty Services) is an extended auto warranty company; Accurate Warranty Services is one of their many selling agencies. Both are interested in getting your money and providing nothing in return.

I had a 94 Bonneville with 147,000 miles on it. I signed up for an extended engine warranty through Accurate Warranty Services as they had the best price for my vehicle of three companies I got quotes from. I was skeptical but asked questions about what would be covered. I even asked about specific situations and was informed as long as there was no obvious neglect, they should all be covered.

The initial down payment is $300 and then monthly payments depending on the total cost of the warranty. Mine was $1800 so around $90 per month. Basically you pay like insurance. You can cancel at any time but you lose all that you paid. So in truth, it is not really a warranty but a monthly fee to insure against engine failure.

You have 30 days to cancel the agreement and get the $300 back but it takes over 2 weeks to get the material to begin with and then you have to send an actual letter back stating why you wish to cancel so you have a window of less than a week to get the paperwork, review the terms, choose if you want to keep, draft a return letter and mail it back to them and hope they don't lose it in the process.

However, after getting the material and reading though it, what they covered still was not totally obvious. There were so many exclusions and stipulations your head spun around trying to figure out what it meant. One would think extended warranty basically worked like any warranty - it if breaks, they fix it except for neglect or abuse.

My car's oil pressure dropped low during a trip within 45 days of signing up and it caused the engine to go. I brought the car in thinking all would be covered as I take excellent care of my vehicle. In having the mechanics file the claim, they were told they have to totally disassemble the engine and provide a complete description of all parts before CDWS would even consider a claim. If they deny the claim, the work done is out of your pocket. So $600 bill possibly coming which probably would not be covered.

After getting with the company and asking questions about their policies I discovered they only cover engine parts if a particular part goes through what is called catastrophic failure. Meaning - the part has to have actually broken apart.  Worn parts are not covered and if the broken part failed because some other part became worn, the broken part is not covered. 

Anyone who understands mechanics knows automotive failure is almost always caused by some part wearing out. Rarely does a part simply break. And if it does, it is often caused by something like lack of lubrication or some other part wearing out. If the seals got worn and oil leaked out - too bad. If the cylinder walls were worn and a rod was somehow thrown - too bad. If the oil gasket disintegrated and the engine got damaged - too bad. 

It was stupid - this wasn't a warranty. It was like having medical insurance that only covers you if you break something without anything actually touching you - your body just breaks. If you eat wrong, exercise wrong, have other body parts fail - too bad. All denied.  Same way.

So in speaking with them repeatedly and realizing they would almost surely deny the claim, I canceled the service and asked for a refund. They said it was past the 30 days - it was around 45 days so they refused. Almost $500 gone and I still have to buy a new engine. 

I sent numerous letters asking them just to consider out of kindness and respect as i cannot get an engine without a refund of the warranty costs. Denied. I asked nicely and even said I didn't wish to file any negative reports. No matter. After 3 attempts through customer service, I contacted the general manager of Accurate (CDWS said I had to get the refund through them) and was totally ignored. No return call or email or letter. They simply think I will go away.

Well, I am not.  I caution you to NOT use CDWS or Accurate Warranty or any affiliates of them for auto warranty. There are other companies that will honor claims - these are not some of them though.  They did not inform me of the limitations in coverage and the contract booklet is not clear. I am not stupid and it is only after talking with numerous people for hours and asking many questions did I come to understand their policy is junk. 

And most people will not read a new policy within days of getting it as warranty implies it is covered. No other warranty have I ever purchased has had such limitations. Even home warranties are more easily understood and with much less restrictions.

They are operating a scam company and anyone that says otherwise must have connections. To ask a mechanic to tear an engine apart and give a complete list of all parts and their condition is stupid and unethical. It is their way of finding any reason at all to deny a claim knowing a person is not going to pay $600 plus dollars just to find out the claim is denied anyway. 

Even after telling them it would be more practical for them just to refund the money rather than get bad publicity which could cost them thousands since the average warranty is over $2,000 - they still just ignored me. So I can only hope many people see this and make these companies pay for their scam practices.