The complaint has been investigated and
resolved to the customer's satisfaction
Interstate National Dealer Servicesfailure to honor warranty

I have a warranty through Warranty Direct on my 2001 Audi A4. My car is using too much oil (2 quarts in 1000 miles based on Livermore Audi's oil consumption test). WarrantyDirect tells me that all internally lubricated parts are covered by my warranty. They required me to authorize tear-down of the engine on February 9. Livermore Audi has identified worn (not broken) rings and valve guides that are causing the excess oil usage. Warranty Direct has received all of the maintenance records for this vehicle. They required Livermore Audi to send the cylinder head to the machine shop to be torn down. The machine shop has verified that 9 valve guides are beyond tolerance limits. This report has been provided to WarrantyDirect.

Warranty Direct has sent the same adjuster to Livermore Audi twice (March 4 and March 17). The adjuster stayed at the shop for 3 minutes each time. He acknowledged the worn rings on his first visit (verbally) and stated that he did not need to go to see the cylinder head at the machine shop. He then filed a report stated no damage. I contacted Customer Service and eventually had to authorize a second visit to Livermore Audi (at my expense) to see the cylinder head at Livermore Audi (we had it returned from the machine shop). The inspector asked for the machine shop report but left before the faxed copy was received. He then filed the same report stating no damage. My husband was present on March 17 and observed the inadequate inspection and has spoken with the master mechanic.

On Tuesday, March 24, Warranty Direct finally agreed to get the machine shop report faxed to them. Livermore Audi sent it to Ken Valestreri at Warranty Direct (Interstate) in Roseville, CA.

Warranty Direct notified Livermore Audi again today that they are denying the claim. There is clear damage that needs repair. The dealership is willing and eager to testify in court against Warranty Direct.


  • Da
    Dan Stomm Apr 06, 2017
    This comment was posted by
    a verified customer
    Verified customer

    I bought a warranty with these thieves at the recommendation of my Bank. The first claim was on my CV Joints and CV Boot. They denied my claim saying it was "normal wear and tear." I went to my credit union and got them involved. The claim was accepted and paid. Now I have another claim - the CV Boot is leaking. They claim that they don't cover CV Boots.
    I wish I had never bought this warranty with this company. They are difficult to work with and DON'T LIKE TO PAY THEIR CLAIMS. DON'T BUY FROM THESE GUYS!!!

    0 Votes
  • Ds
    dscja Oct 25, 2016

    This is criminal. FBI should investigate there practices. Basically, they sell a warranty that is worthless.

    0 Votes
  • Di
    direvolf May 17, 2012

    All of you seem to have trouble reading the contract of what your purchasing. MA memere, you should be glad they paid that 3400, that is exactly what they said they would pay. You paid 2000$, so you still came out on top. Plus if you have a failure in another part of the vehicle, say the transmission, the warranty will still cover it. How can a company stay in business if you give them 2000 and they pay for an $8800 repair? Its simple business, and like any form of insurance company, if they can get out of paying a claim they will. Your job as a consumer is to READ the contract. How can you pay $2000 for something if you don't even know what it covers?

    0 Votes
  • Ma
    MA memere Nov 29, 2011
    This comment was posted by
    a verified customer
    Verified customer

    We are currently in a mess with this company. We added a warranty to a 2008 Mazda that is all paid. All maintenance and repairs have been done by the dealership. My grandson was stopped at a light and when the light turned green, he pressed on the gas. POW!!! He was the second car in line so he was not trying to race or get a fast start. He worked his way into the supermarket parking lot. Oil was pouring out. We got it towed to the dealership and after they're looking at it, they found a piston had blown out the side of the engine. These people sent a rep to review the vehicle and get all the maintenance records. They now tell us that they will pay only $3400. of an $8800 repair bill. They said there is a clause in the contract that says they do not need to pay more than that. They don't tell you those things up front; you find them out after you have started paying for the warranty. Who in their right mind would pay over $2000. for a warranty knowing that they will never get more than $3400. of value out of it?

    -1 Votes
  • Wh
    whitetail May 12, 2011

    these are nothing but a bunch of crooks, i had an extened warranty on my Polaris Ranger, i traded it in for a new one, i still had 3 yrs left on the warranty and when i asked for a refund they said i wasnt due one because i traded my old one in, to begin with, it was mine, i payed for the warranty and now they goin tell me i cannot get a refund because i traded it in and didnt sell it, it was mine i should be able to do whatever the hell i want to with my own stuff, i guess this is how they get a good rating from BBB, by screwing the American people out of there on money

    0 Votes
  • Bo
    Boythunder May 03, 2011

    Total garbage, will never due buisness with these crooks ever, they always have an out to not pay for whatever goes wrong, I have calle dto cancel my coverage had too go through 3 different people, after the third person I will need an notorized letter for the milage on my car and a written letter stating I wish to cancel.Anyone wishing to get an after market insurance for their car please do yourself a favor and do not use these crooks.

    0 Votes
  • Ji
    jimmy doss Jan 06, 2011

    Im having the same problem my crank has play due to a broke bearing that caused the oil pump to bust and the timing cover to bust all oil lub parts they say it due to the miles .120 than but I bought the warrantyat 104 thousand and its coveted till 204thosand

    0 Votes
  • Mc
    MCA777 Aug 07, 2010

    Similar story to WarrantyDirectsucks. I had a bad head and they ran me around with every excuse they could think of refusing to pay for almost 4 weeks. Finally decided it would be cheaper to find a used motor and replace the whole motor. Yet when I asked for THEIR maintenance records on the used, they could not produce them, but still said I had to take the engine!
    Eventually I took the reduced amount they offered and paid the difference to get a new head, submitted a complaint to BBB, but got nowhere with that (how they get a BBB A+ rating is beyond me). They also refused to pay for a rental car during the time they ran me around. Seems like they will just try and frustrate the customer enough to make them give up.
    Never do business with this company!

    0 Votes
  • Te
    terrapinwill Jun 25, 2010

    Absolute criminals...I will never do business with them again and suggest everyone tell a friend the same.

    0 Votes
  • Wa
    WarrantyDirectSucks Mar 25, 2010

    I agree that Warranty Direct SUCKS. The rear window glass on my convertible top disconnected from the top. My local Toyota dealership doesn't do any top repairs, so they referred me to an auto upholstery shop. I also contacted another upholstery shop and BOTH places told me that there's nothing that can be repaired/replaced, and that the ENTIRE top has to be replaced.

    Before having my top replaced, I contacted Warranty Direct to get an approval. I was told FOUR different reasons from FOUR different people why the top wouldn't be covered. I was told they don't cover glass (although there's absolutely nothing wrong with the glass). I was told that they don't cover upholstery, and the top is considered upholstery (there's nothing wrong with the fabric portion of my top and and my policy does not define what upholstery is - I consider upholstery the seats/interior fabric, NOT the TOP of my car). I was told they don't cover seals/gaskets (that's fine, because there is no part/seal/gasket there!) I was told by a manager that it's not being denied because of glass, upholstery or seals, it's being denied because they need a part number to put in their system (and that's just fine, because I'm sure the top repair company can give me a part number).

    I'm not trying to get something for nothing, but my policy says NOTHING about convertible tops being excluded from coverage. The fact that I've gotten 4 different answers from 4 different people tells me they're full of crap.

    I'm going to fight this - and you should too!! I was told by someone from inside the company to request a "Claims Review" from Mr. Larry Cassani, the head of the claims department for Interstate National Dealer Services, (333 Earle Ovington Blvd., Ste. 700, Uniondale, NY 11553) the company that underwrites Warranty Direct. Mention that you'll be contacting the BBB, the state insurance commissioner & the state Attorney General. I'm also going to contact a local news station that runs stories on issues like this - especially now that I know that Warranty Direct has a call center in nearby Charlotte, NC!!!

    0 Votes
  • An
    Andrew Origel Nov 16, 2009

    Interstate dealer WARRANTY services are thiefs they will not honor my car either I have all invoices following the maintence records and still will not honor my motor I have only had the car for 6 months.They should be brought up to the Ag attention as I beleive they are fruad.

    0 Votes

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