Expert: Richard Hixenbaugh - 1/22/2011

Question
Do I have any recourse when a warranty company tells me it will only pay for after market parts when they tell the customer they can take the vehicle to any place we desire for repairs?  I have taken my vehicle to a GMC dealer for repairs but Summit Warranty representatives state they will only pay for aftermarket parts for the repair and that I can take it to any automotive shop that will install aftermarket parts.  This sounds contrary to what the warranty advertises.  Need to know if I have any recourse.  Since I have taken the vehicle to a GMC dealer, I now incur a service cost for them diagnosing the vehicle.  This means I am being ripped off.

Answer
Hi Alfred,

Based on what you have stated, it sounds like to need to seek the advice of an attorney. An attorney needs to read the contract to see what they can get away with. Most warrantees are not worth the paper they are written on. The only warrantee that should ever be considered is one from the manufacturer of the vehicle itself. Secondary market warantees are written to pay as little as possible or nothing at all, and many go out of business on a regular basis. If at all possible, I would recommend trying to cancell this warantee to see how much of your money you can get back.

I hope this helps
Richard Hixenbaugh