Third party warranty denied a $900 repair in Phoenix

Bought a 5 year old SUV with a third party warranty from a dealer in Phoenix, and the AC compressor blew out in July. The shop quoted $900 and the warranty company said it's a 'wear item' even though my contract lists it as covered. Has anyone fought a denial like this successfully, or should I just eat the cost and ditch the remaining 2 years?

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