Report Filed: CARCHEX Extended Warranty Buyer Beware!!!!!! Please Baltimore Maryland!!
I purchased an auto warranty from Carchex in April of 2015 after a lengthy back and forth with an exceptional salesperson and not enough research. One of my primary concerns was the any loss if I decided to cancel. I was told that cancellation would be simple and would involve refunding the amount paid in minus any claims that had been paid. I decided to cancel in August 2015 after paying Carchex 1276.00 dollars. I received my cancellation refund check in the mail today for 46.00. I called and inquired about the formula and this is what they said…The refund is calculated based on either the time elapsed or used mileage and the warranty cost (whichever is higher to benefit them). I used 3 and a half months and 9000 miles and had NO claims, but I paid them 1075.00 dollars based on this calculation and a 50.00 dollar fee. Now for potential buyers, let me explain what this means. This means that, should you decdide to go with them, you will be paying them based on time and mileage used whether they pay your claim or not. If you choose to cancel for any reason, be it poor service or not honoring claims for whatever reason, you have just “GIVEN”” money away at an exorbitant rate. It is like an investment with no return and a very hefty one. One would have to depend on them to be an exceptional warranty company who will value the claims and give a return for the money invested. I just gave away 1076.00 dollars in the matter of 3 and a half months