Extended warranty claim about to be denied!

My 99 C4 has been in the shop for the last 6 weeks with a blown engine and transmission. The dealership tells me that the extended warranty company is about to deny my claim because the car was driven "improperly". According to the OBC, I have hit redline only a few times and the car has been overrevved once - many operating hours prior to its actual failure. These are the warranty company's reason for denial. Has anyone had a similair situation or has heard of a warranty company being successful with taking this position. My service manager at the dealership and his shop foreman definitely think it was a mechanical failure rather than "abuse". In fact they said they have numerous OBC printouts with cars just like mine that have been overreved and redlined many, many more times than my car with no problems! Incidently, they found a failed rear main bearing, a bent crankshaft and a rod failure on number 6. I do plan on meeting with my attorney tomorrow, but any advice would be appreciated.

which warranty co? wow, a bent crank good luck!

ACE USA/ Dimension Service Corporation. Purchased at the local authorized porsche dealership.

BTW, claim denied....

Sounds like you're going to incur legal fees plus the cost of an engine. It's somewhat helpful if the company is not California based, which would require them to retain local counsel. You're in for a 2 year-plus process. Make sure you have absolutely great photographs of the damage. Ultimately, you'll need sworn statements of the service manager- because he's sure to be gone by the time the case gets settled or tried. Take careful notes of all your conversations. If it goes the litigation route, you'll eventually recover most of your repair costs, but the legal ones will be your problem. Good luck. AS

i think that alexander's advice is 100% accurate. i wound up suing (and settling) a major airplane manufacturer due to an in flight engine failure, and i can tell you that alexander has given you sage advice. i wonder, would anyone who has had experience with a claim with a warantee company comment on their experience.

Thanks for the advice Alexander. Unfortunately, it looks like i'm probably going to have to sue. In the meantime, I'll repair the car out of my own pocket and then sell it. Partly to offset the repair cost and partly because this whole ongoing experience has put a bitter taste in my mouth...

Here's my car before it broke....

how long was your original warrantee for?

original factory warranty was 4 years 50k miles. it was up in april this year.

any luck trying to convince porsche to stand behind the engine. in the early 90's, pcna stood behind a blown cylinder on an engine 4 months past a 2 year warrantee. the service manager at the dealership was able to convince them. good relations with your dealer might help.

"My service manager at the dealership and his shop foreman definitely think it was a mechanical failure rather than "abuse"." yep, like doc said if the above is the opin of the serv mgr and the car has around 60k miles or less, i'd think a porsche good will repair is not out of the question. did you buy it new? apparently you bought it from a p-car dealer given you got the warranty from a p-car dealer? if so, how long ago and at how many miles did you buy? are you working with the same dealership that sold it to you? btw, how common is it for the tranny and motor to go at the same time???????

Write down what the P dealer people are saying, in your own hand writing & date it. Keep notes like this on different sheets of paper along with any detailed diagnosis paperwork (demand detail). Your atty will probably be interested in the fact that Porche dealer sold you the policy and received compensation. My guess is they are also a party to be charged. He will probably tell you to rent a similar car (your insurance co may pay a portion), to receive the same benefit of the payments on your broken car. Did the diagnosis dealer sell you the policy (&car)? Get another opinion if he did - it's going to get sloppy........... Good luck...

What shop? Jeff

Another angle to think about; You say the car was red-lined and over revved once. Can you determine if this occured before the Dealer sold you the warranty?. If so, then they could be liable for a "fraudulent" act. As an agent of the warranty Company, they would Or should have known the coverage rules and as "professionals" they should have done due diligence on the car before selling it (or the warranty) to you. Maybe this will approach will hold up and give you some traction. Good luck!

Thanks for all the input. I'm meeting with my attorney in a about and hour and i'll bring up all these points with him and see what he says.