Complain about a product or service

American Guardian Warranty Services, Inc

Aida of Brownsville, TX October 8, 2008

I bought a 2003 Freightliner Columbia from American Truck Center. With the purchase of the truck I purchased American Guardian Warranty Protection for 2,750.00. As per the contract: my warranty covers motor, trans, diff for 2 years or 240,000 miles. September 19, 2008, I called and spoke to agent Giomar at AGW, she was unable to start my claim due to my mechanic not being fluent in Spanish. I was told the only person in thier company that can speak Spanish was out of the office for the next 2-3 business days.

Once again I called AGW September 24, 2008; my claim was opened. My claim amount is 9,225.74, AGW won't cover even half of that. They alloted me 3,800. Customer service at AGW practically ridicules you when I expressed concern over my claim. Bouncing back and forth between agents and supervisors has been my daily task going on 3 weeks now.

Once again I called AGW, and was finally told that the claim will be processed and payment will be received 3-5 WEEKS from now. I'm a small business owner so I go the the friendly economical mechanic. He can't start major repairs without getting some sort of payment. I offered to have my truck towed the the nearest Freighliner dealership at my expense. They can absorb the cost and wait the month or two for the company to pay up. AGW refused to hear of my truck being moved. Their excuse being my friendly neighborhood mechanic is cheaper than Freightliner.

John (highest supervisor available) advised me to pay the full claim to my mechanic, then AGW will refund 3,800.00 in the mail--once again in a period of 3-5 weeks. In the mean time, who is going to pay my 2000.00 a month truck payment, not to mention a driver that I have sitting in the office waiting for me.

Lawrence of Hollywood, FL August 22, 2008

My wife received an unsolicited telephone call from someone with American Guardian who claimed to be with Mercedes Benz USA (MBUSA). He stated that he was selling an extended warranty through MBUSA for our mercedes automobile. When specifically asked if the policy was through MBUSA, he replied yes. After checking with MBUSA we found out that American Guardian was not authorized by MBUSA and that MBUSA had absolutely nothing to with American Guardian.

The same day we contacted American Guardian to cancel the policy we had paid for by credit card. After stalls, lies, and American Guardian refusing to cancel the policy, we called our credit card company and cancelled the purchase.

Chris of Hackettstown, NJ June 18, 2008

2003 chevy malibu 06/18/08 I dont even know where to begin.This has got to be the worst company in history. I purchased the PLATINUM package warranty from NATIONAL WARRANTY a subdivision AGWS for 2,300 + tax. This package supposedly covers everything but normal wear and tear parts. For two months now my vehicle has been at my local dealership with the top of the engine ripped apart. I had a head problem with one of the lifters pulling out at 60,000 miles. The dealership contacted this warranty company and for 4 weeks sent out three different inspectors because the cost of the repair was high. I ahd to fax numerous copies of repairs to this company and spend countless hours making phone call and leaving voice mails just to find out the status of my vehicle claim.

When AGWS finally said they would finally cover the repair they lowballed the parts cost from the dealer. I had to wait two more weeks for AGWS to ship reconditioned parts to the dealer. Now they have lowballed the labor as well. The car has now been finished for two days aftet two months of waiting and now they are stalling on paying the dealer for the work done. I cannot even touch the car yet. After numerous calls to AGWS they asked me to fax even more information to them. Documents that they already have had since I have started this two months prior.

The stress has been overwhelming. Buyer be ware of this company. The NATIONAL WARRANTY company is a joke as well. They tell you anything to get you to buy this coverage but when you call them for help they tell you its not there problem and transfer you back to AGSW...

Micheal of Fort Stewart, GA May 13, 2008

In late January of 2007 my 1998 Dodge Durango started having transmission problems. I took it to a transmission shop and called AGWS to let them know. They told me to give them the shops contact info and they would take it from there. So I gave them the info. The had the shop tear down the tranny to find out that the clutch pack in the tranny was burnt up and the torque converter had malfunctioned as a result. These are all things covered by the warranty. They had there inspector come out and takre a sample of the fluid in the tranny to verify whether or not it had motor silk in it. They took over a week to get the results back from this. While all this is going on, I am scheduled to deploy to Iraq on Feb 24th of that year. Do time is running short.

I'm out of state when all this happened and my wife just had our second child. I'm having to pay for hotel stay and vehicle rental. The repair shop asked me what was goin on because the vehicle had been there a week and nothing was being done. I called AGWS and asked if I pay the repair shop for the repairs, can I be reimbursed. They told me that yes you can, all you have to do was submit the paperwork showing prrof of payment and they would review it and it could take up to 30 days before I get reimbursed. So I called the repair company back and told them to do this. I go get a loan for 2400. I go pay the repair company. After That I try to get the information needed to send the paperwork to AGWS. They tell me you paid before we made a decision, we arent goin to reimburse you. They then tell me well we didn't find motor silfk in your tranny. Then they said they did find it but the fluid level was low causing failure. I told them that the receipt from the repairer says fluid level ok and the guy hung up on me.

After that I had to deploy. So I did and spent 14 1/2 months in Iraq. I came home in Apr 08. I have tried to get the warranty company to do something about this and they were telling me they wouldn't. Now they are saying well submit you paperwork and someone will review it and try to make a decision. I then asked how to cancel my warranty. A warranty i paid for and have every right to decide i don't want anymore. They told me to fax them paperwork and that they will review it and make a decision. Hello I paid for it I want to cancel it, that's not your decision to tell me if I can cancel it.

I will send my paperwork to them. If they tell me again that they will not reimburse me for my OUT OF POCKET expense then I will be filing a civil suit hear in GA and in IL. All total I paid 1445 for the warranty, 2373.21 for the tranny, 400+ for the vehicle rental and 400+ for the hotel I had to stay in.

James of Spokane Valley, WA May 8, 2008

My experience with this Company is very different than what I have been reading on this web site. I have had the warranty in place for three years, during which I have had three claims; an Alternator 400, an A/C compressor 800, and today a starter 275. All claims have been approved promptly, paid pretty much in full, and per my repair facility paid very promptly.

So far I haven't had to produce service history or any other documentation. I have had several other service contracts from other companies, and I think AGWS is superior to the others. Probably not perfect, but pretty darn good. When I buy a service contract on my new Subaru, I will go with AGWS.

Patti of Belvidere, NJ January 22, 2008

I have been trying to cancel the warranty payment of 88.00 a month. I have been paying this since June 2007. I cannot talk to a live person. I have called six different numbers and have not received any assistance at all.

I don't feel I want this service any longer. I feel it is a scam and honestly got into--I'm not sure how. I believe I thought it was a warranty through Ford.

Karen of Mcgaheysville, VA May 20, 2007

I purchased an extended warranty from American Guardian after solicitation over the phone in 2005. The seller made their plans seem so much better than everyone else's. Thinking that since I always took care of my vehicle anyway, and that this was the last vehicle I wanted to buy for a long time, I bought the extended warranty. I thought it would be good to have 'just in case' something happened.

I spent roughly 2400 for this plan (Silver plan). At the end of April of 2007 my 'check engine' light came on unexpectedly and I pulled off the road as soon as possible. I did drive approx. 1 mile-- it was rush hour, bumper to bumper traffic, so I was getting off the road as safely and quickly as possible. As I turned in to a public parking lot, my vehicle cut off. I lost steering ability, etc. since the vehicle cut off. I (ironically) was on the phone with the dealership when the light came on. I was freaking out with the person from the dealership b/c I knew this shouldn't be happening. This occurred on a Mon. and I had just had an oil change the Thursday before.

And at the end of March I had a complete inspection and about 200 in 'preventative services' performed at that time. When I got out of my vehicle there was something wet entirely covering my right wheel well. Under the hood, there was liquid all around the radiator. I thought it may be coolant but I wasn't sure. I had my vehicle towed to my dealership, where I found out the next day that an 'internal part' specifically listed in my policy as 'covered' had failed. Dealership said the water pump failed and the engine overheated. Cylinder 1 and 2 had no compression. (My vehicle is a 2002 Jeep Grand Cherokee Laredo 4.7 L V8 with 78,000 miles). I was given 3 estimates by my dealership-- brand new Mopar engine with installation for 7800, brand new Jasper engine installed for 6300 or a used engine with 70,000 miles on it installed for a little over 4000. I freaked out at first-- how was I ever going to afford even the cheapest of these options?? But then, the gleam of hope...

I remember purchasing the extended warranty from American Guardian. Well, little did I know that the next month of my life would be a total nightmare. I'm sorry, but this company, American Guardian Warranty, made my life a roller-coaster of hell. My dealership said the water pump failed, which therefore CAUSED my vehicle to overheat. The warranty company then sent out a supposed 'independent' inspector (which I believe to be a complete load of bull..) to inspect my vehicle. He said that the water pump failed however he added 'with subsequent damage to the engine due to continued operation'. So basically, he was saying that, yes, my water pump failed, but that I drove it too long causing the engine to be damaged beyond repair. I fought this with the company and the next week they sent a second supposed 'independent' inspector to look at my vehicle. The company never had the decency to let me know what was happening along the way or anything. They would just verbally say over the phone 'oh, it's not covered. Your vehicle overheated'. It wasn't until I DEMANDED that they fax me every copy of every inspection report that I found out that the first inspector agreed that the water pump failed (which is covered by the plan) and that the second inspector said he couldn't even conclude what happened-- he said that definitely an 'internal part' failed but he could tell which one, and that even if further tear down would be completed, he may still not know what caused the malfunction. When the second inspector went to my dealership to look at my vehicle, the lady that normally takes care of me over there called me and said this guy was (for a better use of words) a jerk. She said he was tearing my vehicle apart and incesantly rummaging through all of my paperwork there. It sounded to me like American Guardian basically 'lit a fire' beneath this guy to MAKE him find ANYTHING NOT covered by my plan.

They again stuck with their story of 'it overheated' and denied my claim yet again. I was denied a rental vehicle. Evidently American Guardian is a branch of National Warranty Division b/c my paperwork lists both names. National Warranty is the sales rep. aspect of the business (I think). The homepage for Nat'l Warranty says under the 'coverage' section that 'our policies do not exclude damages due to overheating'. Well isn't that interesting??!! LUCKILY, I had an older backup vehicle to use in the meantime but I don't know what I would have done without that! It has been 1 month now! This company has been rude and underhanded. I have an extensive history with my dealership. My dealership faxed my entire maintenance history to American Guardian which they didn't even comment on.

My dealership said I have about the biggest maintenance record they have ever seen. I have done EVERY preventative service possible to ensure something like this would not happen. I always thought that if I took care of my vehicle I wouldn't have anything to worry about. I surely thought that this 'malfunction' would be covered by my insurance. What a joke. I have filed a civil warrant to sue this company. I am dropping it off at the courthouse tomorrow. I pray I get justice.

After one month, my vehicle is sitting torn apart at my dealership. I am in the process of suing this company for everything I can get. This has been an immense burden- financial as well as emotional. I am married, work about 30 hours a week but I am also going back to college to get my bachelors degree. I have had to place a lot of phone calls during my work hours to American Guardian that just ended in frustration. I can't tell you how many days I've cried at work but still had to do my job. I've still had to work and I've still had to get my college work done as well. It has not been easy. Unfortunately, resolution is still far away-- I'm not sure what will happen with this court case. I do already have an attorney.

The company responds:

There are two sides to each story and here are the facts in Karen’s case for which AGWS paid 4,000.00 for her engine claim. The engine was locked up when the Jeep was towed in. Upon disassembly it was discovered that the engine was severely overheated to the point that the #1 cylinder-exhaust valve seat dropped out of the cylinder head. Damage included a warped head and low cylinder compression in the opposite cylinder bank.

A 2002 Jeep Grand-Cherokee is equipped with both a Check Engine Light and Temperature Gauge. In this case, coolant leaking out of the water-pump making contact with other hot engine parts would cause vapors and burning odors to blow back into the vehicle as it was driven, not withstanding the loss in performance as the engine became hotter. Most if not all experienced mechanics and machinists would agree that it takes extreme heat for an exhaust valve seat to drop out of a cylinder head. Also, two separate appraisal companies were employed by AGWS to insure that objective information was provided before the claim was declined. We concluded that the operator drove the vehicle to the point of complete failure rather than turning the vehicle off and calling a tow truck.

AGWS is presented with more than 48,000 claims annually resulting in payments in excess of 20 Million Dollars. Continued operation circumstances where a vehicle operator has caused catastrophic damage due to neglect is a condition that no vehicle service agreement provides coverage for, not even the manufacturer’s underlying warranty. AGWS believes that all claims should be weighed on their merits and the terms and conditions within the service agreement. We appreciate this opportunity to explain the other side of Karen’s story as AGWS paid a considerable amount towards her repairs.

Daniel Lievrouw
Director of Information Technology

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