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Message: Paragon Motor Club (a extended warranty story...)

Changed By: macnjam
Change Date: March 05, 2012 04:54PM

Paragon Motor Club (a extended warranty story...)
All, I am a lurker but posted a about 18 months ago (can't find the post) that I purchased and an extended warranty from Paragon Motor Club.

The warranty I purchased provided an additional 5 years or 100,000 miles for major mechanical. this would take me to 2016 or ~180,000 miles whichever come first. I paid a discounted price due to my employer, cost was about $1800.

The vehicle in question is a 2002 Boxster S.

This story begins with a early 2011 claim from my Porsche dealer (Hennessy, Atlanta GA) because the water pump was making a noise while they were fixing a engine light issue due to a bad sensor. Sensor not covered, water pump covered by warranty.

Hennessy did a claim, and while it was paid took 36 hours and I had to fork over $75 becuase I wanted to use a Porsche part (not remanufactured etc.). Cost to Paragon was $900 of whereabouts.

Then my friends, things got interesting!

My clutch failed in September of 2011. Original clutch and car was @ 85,000 miles. Upon inspection Hennessy says flywheel is toast too. looking at close to $3000 to fix. While clutch is a "wear" item the warranty specifically covers "Transmission case and all internally Lubricated Parts; torque converter; flywheel/flex plate; and vacuum modulator. Seals and gaskets are only Covered when required in connection with the replacement of a Covered Part."

Hennessy makes a claim for the flywheel/flex plate and it is immediately denied. I call Paragon (or rather 3rd party who services their warranty) and am told that my dealer said the clutch caused the flywheel to fail. Their customer service people are clearly trained to say no. I spoke to four of them and all refused to escalate to a manger. Hennessy says no we did not say that. Regardless of why it failed, it is a covered part @ $1100 bucks from porsche.

So I pay my $3000 (including couple items like engine mount out of my owns pocket) and then go to http://www.bbb.org/us/Dispute-Resolution-Services/ and file a complain with BBB as Paragon markets their product as being BBB A+ etc. This is October 2011.

January 17, 2012 due to lack of response as to my claim, Paragon has their accreditation put on hold. the next day I get a call from Paragon pleading ignorance, we only sell we do no service warranty, the 3rd party provider did not respond all their fault etc. I make point that Paragon markets BBB accreditation with this product so I will be happy when you cover my failed part. A couple days later they ask for my service record for repair (I offer to ship them the flywheel, which I have in my garage), I fax them and then told that the original claim was denied due to lack of documentation (ah, based on my four calls and my dealers calls at the time, bullshit)) and that it is now approved. A week later I get a check for $2205 to cover parts and labor.

My dealer says anytime these warranty reach a certain point (over $1000 for me) the servicer denies everything.

So there you have it. I have meant to post this for a while as when I posted questions before as to extended warranty, i committed to update my experience.

Regards,

Joe in Atlanta

Original Message

Author: macnjam
Date: March 05, 2012 04:54PM

Paragon Motor Club (a extended warranty story...)
All, I am a lurker but posted a about 18 months ago (can't find the post) that I purchased and extended warranty from Paragon Motor Club.

The warranty I purchased provided an additional 5 years or 100,000 miles for major mechanical. this would take me to 2016 or ~180,000 miles whichever come first. I paid a discounted price due to my employer, cost was about $1800.

The vehicle in question is a 2002 Boxster S.

This story begins with a early 2011 claim from my Porsche dealer (Hennessy, Atlanta GA) because the water pump was making a noise while they were fixing a engine light issue due to a bad sensor. Sensor not covered, water pump covered by warranty.

Hennessy did a claim, and while it was paid took 36 hours and I had to fork over $75 becuase I wanted to use a Porsche part (not remanufactured etc.). Cost to Paragon was $900 of whereabouts.

Then my friends, things got interesting!

My clutch failed in September of 2011. Original clutch and car was @ 85,000 miles. Upon inspection Hennessy says flywheel is toast too. looking at close to $3000 to fix. While clutch is a "wear" item the warranty specifically covers "Transmission case and all internally Lubricated Parts; torque converter; flywheel/flex plate; and vacuum modulator. Seals and gaskets are only Covered when required in connection with the replacement of a Covered Part."

Hennessy makes a claim for the flywheel/flex plate and it is immediately denied. I call Paragon (or rather 3rd party who services their warranty) and am told that my dealer said the clutch caused the flywheel to fail. Their customer service people are clearly trained to say no. I spoke to four of them and all refused to escalate to a manger. Hennessy says no we did not say that. Regardless of why it failed, it is a covered part @ $1100 bucks from porsche.

So I pay my $3000 (including couple items like engine mount out of my owns pocket) and then go to http://www.bbb.org/us/Dispute-Resolution-Services/ and file a complain with BBB as Paragon markets their product as being BBB A+ etc. This is October 2011.

January 17, 2012 due to lack of response as to my claim, Paragon has their accreditation put on hold. the next day I get a call from Paragon pleading ignorance, we only sell we do no service warranty, the 3rd party provider did not respond all their fault etc. I make point that Paragon markets BBB accreditation with this product so I will be happy when you cover my failed part. A couple days later they ask for my service record for repair (I offer to ship them the flywheel, which I have in my garage), I fax them and then told that the original claim was denied due to lack of documentation (ah, based on my four calls and my dealers calls at the time, bullshit)) and that it is now approved. A week later I get a check for $2205 to cover parts and labor.

My dealer says anytime these warranty reach a certain point (over $1000 for me) the servicer denies everything.

So there you have it. I have meant to post this for a while as when I posted questions before as to extended warranty, i committed to update my experience.

Regards,

Joe in Atlanta