Paid $800 for an extended warranty and they denied my claim anyway

Bought a used 2018 Honda Civic from a dealer in Phoenix last year and they pushed me hard on this third-party warranty from some company called ShieldGuard. Cost me $800 upfront. My AC compressor went out in June and I thought no big deal, it's covered. They denied the claim because they said the part had "pre-existing wear" even though the car had 45k miles. Called three times and got the same runaround. Total waste of money and time. Anyone else had a warranty company find some dumb excuse not to pay?

2 comments

2 Comments

coleman.seth1mo ago

Honestly, "pre-existing wear" on a compressor at 45k miles is just their go-to excuse to not pay out. They know most people won't fight it hard enough to get anywhere, so they just bank that $800. Tbh, these third-party warranties are designed to deny claims, and the dealer gets a kickback for selling them.

emerycarr1mo ago

Wait, you're saying the dealer actually gets a kickback for selling those? I used to think those warranties were just a safety net but now I'm starting to see your point. That really changes how I see the whole thing.