Complaint Review: Preferred Warranties Inc - Orwigsburg Pennsylvania

If you get paid for driving a vehicle, that is the definition of commercial use.  While the companies may claim it's "ride sharing", your insurance company and the courts would probably disagree (they only use that excuse to get around taxi regulations).  I don't think your insurance company gave you good info; all insurance companies generally have special plans for Uber/Lyft drivers that cover that kind of use, since almost all personal policies exclude it.  So you'll probably end up with a cancelled policy and a denied claim if you have an accident while using the app.

Also, extended warranties are pretty much always a rip-off, and are marked up by the dealership 2-5x their actual cost.  Even if they didn't void it for driving with the app, they'd find another excuse to deny your claim.  Sometimes, the company just goes out of business a couple of years after they sell the policies.  Either way, it's a terrible deal.  If you can't afford to pay for repairs, you can't afford to own the car.

Lyft is NON Commercial and is considered a Ride Share App. I had taken not 1 single trip in the vehicle. I had only signed it up considering that I may need something to do at some point. I still had more than 2 yrs and 6 Months and over 30K miles remaining on my warrranty on a vehicle that had less than 100k miles and not mistreated. Yes, I read the contract closely! My Insurance considered it to be PRIVATE as I reported that I had signed up with the service. Liberty Mutual didn't consider it Commercial. If I were running a Car Service or Livery, then I would have to get COMMERCIAL INSURANCE. ALSO I WOULD NEED COMMERCIAL LICENSE AND PAY COMMERCIAL FUEL TAXES. Even just a refund of my warranty money would have been the proper thing for them to do considering, I had not used any portion there of and it was the amount I needed to fix the car. Its clear that you know it all so tell me more about how you think the situation should've been handled and what you would do to get your car in working order when there was no money to fix the car and you had a $650 a month note that was already killing you because you had 7 kids at home who all drink premium beer, smoke American Spirit Ciggerettes and daily a ounce of Hydro Marijuanna, each........ and you are thinking well, If you cant afford maintence or upkeep shouldn't have bought the vehicle!! I was suckered into the vehicle warranty by the dealer, who knew that i was specifically purchasing the vehicle with intentions of using it as a private car service on days where i wasnt driving my client in a PREVOST bus. Been living like a rockstar, because thats what I do. Then, the contract was not specific because there was no UBER, Lyft or Sidecar at the time I bought the car. It clearly says commercial Vehicle and Emergency Reponse Vehicles in the said contract. And we have already established, it is in fact NON-COMMERCIAL........

I don't even know how you can make any cogent argument that your use of the vehicle wasn't a commerical enterprise. Of course it is - you drove people to their destination for money which is clearly a commerical application.  As to the service warranty, did you read the contract?  It will state in the contract if a commerical use of your vehicle is allowed or not. The prior poster outlined it beautifully. 

Next, if you are serious about ruining your credit score- turning in your vehicle will do that and you will have a repo on your credit. Not a good thing. Instead of turning it in, you can drive the vehicle, but since you are using it for commerical purposes, then you need to either find the right kind of warranty that will allow commercial use (in writing) or set aside funds from the Lyft income for repairs. It is part of being self employed. 

Personally, I think turning in the vehicle is the worst thing you can do. A repo lasts a long time on your credit. And, if the lender then decides to get a judgment, you are looking at 10 to 20 years plus renewals for the judgement. Check your states' statutes so you know what applies in your jurisdiction. To me it is like jumping from the pan into the fire to go from an uncovered warranty item due to misuse to turning in the vehicle. Why would you even consider it?

Lyft is an obvious example of using your car for commercial use.  You are transporting passengers for hire, just like a taxi.  That means you need to e.g. buy the appropriate kinds of insurance.  This also means that many types of warranties and service plans do not apply to you, because you use the car much more than the average person who primarily drives it to and from work.

As far as the sticker being proof: what other proof would be needed??  The sticker proves the vehicle was at least partially used for commercial purposes, which is a breach of your contract with the auto warranty company (which presumably states that the vehicle is used only for personal, non-commercial use).  Thus, the contract is void and they do not have to pay you to fix your car.  It's not any different than if the vehicle was covered with taxi livery and had a sign mounted on top.