Australian Warranty Network... is NOT what it says it is!
When I bought my Audi A4 a couple of years ago it had 55,000kms on the clock & it was suggested by Audi that I consider "investing" in an Extended Manufacturers Warranty... for an extra $2495. I hadn't bought a used car car before & despite my cynicism about the value of such things (I mean, what could go wrong? It's an Audi right?!) I was a bit nervous about it being 2nd hand so I said yes.
Last month when the transmission started to shudder & the report came in from Audi saying that it had to replaced I thought "Phew! At least I have the Warranty". Or did I?!
All States Warranty Network (AWN) phoned, using a most congratulatory tone, to tell me "We've approved your claim and have authorised the repairs... and will cover $3,600 of the quote!". Which all sounded good untill I asked "How much IS the quote?" and they answered "$7,800". I nearly freaked! How come I have to pay an extra $4000 when I bought an "Extended Manufacturers Warranty"?
Despite what you might assume, they told that me an Extended Manufacturers Warranty does NOT actually extend the manufacturers warranty (?!) and they have said that most of the damage to the transmission is "consequential"... which means that they will cover the part that has failed but nothing else that fails because of that... and in this case they say a seal failure has caused a loss of oil pressure in the clutch assembly whcih has caused... you get the picture. I am bloody angry: I said to them: "so tell me what I've done wrong here?!"
"No, you haven't done anything wrong sir... but if you read your Warranty book carefully..." Bullshit. The repairer and Audi say it should be covered & I think the very terminolgy "Extended Manufacturers Warranty" clearly infers that it would be covered... as it would be if it had happened under the new car warranty. I have contacted Consumer Affairs who have asked for copies of the correspondence so I have asked for their response in writing so I can take it further... as I said to Consumer Affairs - they can call their Warranty Gold, Platinum, Silver or whatever they bloody well like - but if it doesn't actually extend the manufacturers warranty then they shouldn't call it that!
posted by Graham Hoskins at 7:07 pm
18 Comments:
Graham,
I certainly understand your frustrations, however a 3rd party warranty provider would never provide the level of cover that a manufacturer would. I also have a AWN Extension of Manufacturers Warranty on my 04 BMW 330i and the transmission went bang! AWN also covered the majority of the claim, much more than I originally paid for the warranty, so I'm in front, as you also are. Read the book and you'll find that it is a mechanical breakdown warranty, nothing more. The dealer should know what is covered if they also have read the book. It's very easy to point the finger and pass the blame.
Graham, you're right about Australian Warranty Network (AWN) I asked aroung some car dealers that I know and they all said the owners live on Hope Island on the Gold Coast, driving luxury cars and living in massive houses. There is obviously a lot of money to be made out of their warranties, escpecilly when they don't pay claims. They tried to get out replacing my engine 2 years ago, claiming "consequential damage". My dealer was the only thing that saved me. They fought with AWN and got the claim paid, then apparently they moved their warranty business to another provider, National Warranty Company. I have since bought my wife's car from the same dealer with no problem.
I don't have a problem with them having restrictions but I do have a problem with them calling it & selling it as "Exteneded Manufactureers Warranty" & sauying "simnilar to new car warranty" when it quite clearly is not! Audi Perth have also gone to another Warranty provider. They paid my repairs costs a week before going to Court however I was never reimbursed for the 4 months of car rental etc while it was being fixed.
from michael Burton
i bought a second hand vehicle
covered by the high cover option
avaiable through AWN had it for three and a half weeks,the rear main seal started leaking which
damaged the clutch which is shuddering.The warranty changed to AWN in that period as i moved brisbane to townsville. WHen put to AWN
they said that clutch is consequential + they don't cover oil leaks.Obviously having the AWN option to have peace of mind is
a waste of time and money,another case of rip off insurance take money promise everything but don't pay out.
Hey Graham and any one else that take the time to read this blog. I am a salesman at a NSW dealership and have never heard a bad word about AWN. That fact of the matter seems to be the fault of the selling dealer, if what you say is fact, then they and they failed you by misinforming that the policy you purchased as in fact a manufactures extended warranty. The rest of the blame should be shouldered by you as the consumer for not reading what you were signing/paying for. Just another tip Graham perhaps you should proof read what you typed before you post it!!!
I am sorry for my "colleges" actions, I cant wait for those guys to evaporate from my profession!!
With advice to heeded that in future one should read the fine print before signing any contract, I nevertheless stand by my opinion & actions in reporting to the ACCC that a Company is allowed to sell a product called an "Extended Manufacturers Warranty" that quite clearly does not do that... & my annoyance is that the Extension was presented as being selected & backed by Audi... who subsequently stopped selling the ASWN product due to "ongoing issues" with them... at least that is their side of the story.
1:47 AM
Funny funny funny!! I worked for awn for 3 years and can't believe I lasted that long and I would never ever buy a warranty from them it is the biggest load of crap I have ever experienced and they try every trick in the book to get out of paying out claims, they are rogues, they also have teamed up with harrier so watch out two a hole companies combining!! From memory I don't think we had once nice phone call stating how wonderful our warranties were they were all complaints, so many employees have left because they are scanners, I left because I got bullied, harassed and forced to resign after sticking up for myself to a manager, you think being a customer you were treated bad, us employees were treated worse! I don't recommend anyone purchase this warranty! Also what the dealer sell the warranty for to you is a huge mark up compared to what awn wants for it and if you choose to cancel your warranty dont hold your breath for getting your money back
Dear Anonymous
If you want to post a comment like late at least have the balls to post your name,all staff are treated fairly at AWN in fact I think I know who you are, and the rude manner in which you spoke to cutomers was clearly your own doing, so many complaints about you when in fact we strive to satisfy our customers
Jeff
Save your money!!! AWN Warranty is not worth the paper it's written on. It's carfully worded by crooks with mechanical knowledge and lawyers who have made a list of all the things that are likly to go wrong with your car and exlude them from your cover. If I had the time I would send my story to today tonight. I would never bother with AWN ever again and strongly suggest you save your money and use it to repair your car when it fails.
I too have had the misfortune of being stitched up by Australian Warranty Network.
I purchased a second hand Peugeot through a Queensland dealer last year (2012). This dealer used the availability of the AWN warranty as part of his sales pitch and pointed out that it was a great product (the Deluxe policy no less!) for interstate clients like myself who could not return the car to his dealership for servicing.
The availability of the AWN warranty was a significant factor in my decision to buy this particular car, as I live in country NSW outside of Canberra. I communicated this to the car dealer at the time.
I had read the AWN Product Disclosure Statement and clearly understood that routine maintenance issues were not covered under the terms of the warranty. Along the way I have complied with AWN’s strict service terms - which I must say I have never felt entirely comfortable with as they appeared to have been drafted with the possible intent of catching some people out, and in so doing nullify their entire warranty contract e.g. service intervals less than manufacturers recommendations, the need to provide AWN with the documentary evidence of routine services within a very strict timeframe etc.
And until today I had not made any claims. I then needed a new brake switch installed at a total cost of $322.85. Without this switch functioning properly the ESP and cruse control were both being overridden, which I understand is an electronic system initiated safety response. But when the Peugeot dealer contacted AWN they were told that this part was not covered.
When I subsequently contacted AWN I was told by the woman on the phone that I should refer to their Product Disclosure Statement which identifies the "Covered Components" and those that were specifically excluded under the two potential headings "Braking System" and “ABS Braking System".
A “Brake Switch” was neither included, nor specifically excluded (i.e. like brake pads or linings, disc rotors and service items). It was therefore covered by a statement in the contract which states "Any component or item not listed below is not covered by the Warranty". At which point the AWN woman announced to me that she was not going to argue about it with me any further!
To add insult to injury the very helpful lady in the Peugeot service department (Stephanie) later told me that she had had another claim recently for exactly the same part which was accepted by another insurer, Motor One. (In fact she even provided me with documentary evidence of this, with the client’s personal details removed of course).
I'm just about to purchase a secondhand Landcruiser and have been offered an Australian Warranty Network "Advantage Contract" covering for a 12 month period. After reading the horror stories here and on other websites
I think I'll save my money for any future repairs that may be needed. The vehicle comes with it's statutory secondhand dealers warranty and by taking the vehicle to task via the inspection services of the RACQ or NRMA or similar service during the dealer warranty period, it should weed out most of the major bugs.
On most occasions a major malfunction is caused by a series of minor parts malfunctioning first, so AWN may not cover the damage caused based on that alone from what I understand of there carefully worded policy.
I love there engine cover policy, how do you blow an engine without having it overheat??? Work that out.
"They live a breath customer service" it says on their marketing materials?
What a joke!
Same here, stay away. We have a 5 year deluxe warranty with them and had all services done on time for the first 2 years (every 6 months is a must according to their terms and conditions). You end up paying more for services because of that. Even when our manufacturer recommends services every 12 months or 20,000km you have to do them every 6 months or 10,000km or whatever comes first. Read the fine print.
Then after 2 years we missed a service by 1 1/2 months and Australian Warranty Network (AWN) told us the warranty contract is void!!!! Can you believe that!? And we never had a claim on top of that!
Also the list what is covered has a lot of exclusions.
Stay away from them! Absolutely terrible and a scam. They only want your money. A company like this should get out of the market! I'm very angry at them.
D. M.
We too have had a really bad experience with AWN. They are quite willing to pass you over with some excuse. Of the three claims made all denied as either not covered or sorry you missed your 3 month service. We hadn't even done close to 5000 Km. Please steer clear of them. Or if you do sign on the dotted lines be prepared to meet their ridiculous service schedule which means you pay for more service dollars than the hassle is worth. We will never deal with them again and when we do buy another car we will make sure that it is from a dealer that doesn't deal with AWN. We are making sure that we tell everyone that this is a company you should have anything to do with.
Hi everyone,
National Warranty Company Have Snagged a number of people.
This is what I intend on doing. Please read!!!
Step 1. Contact FOS (Financial Ombudsman Service). 1300 78 08 08 – FOS are the financial ombudsman and the majority of the time they find in the persons favour. National Warranty or Davantage, whomever the warranty is supplied through have to pay FOS for the handling of all complaints against them, this handling fee in itself can cost in excess of $5,000 – and if the loose they will have to pay your damages on top of that. Either way win or lose they have to pay FOS considerable sums for handling the complaint. If National Warranty are smart they will settle your case and pay your warranty claim which they should have rightfully done in the first place.
Step 2. Contact ASIC (Australian Investment and Insurance Commission). 1300 300 630 – Make a formal complaint. If at anytime you feel that National Warranty have misled or deceived you in anyway make sure you let ASIC know all about it.
Step 3. You may also complain to APRA for good measure. I am not sure how useful they are 1300 55 88 49.
Some key points I have discovered about this company and some of my experiences when dealing with them. If you have experienced anything like the below and decide complain to FOS and ASIC they are likely to take you very seriously.
1. I was never issued a PDS (Product Disclosure Statement)
2. I was never issued an FSG (Financial Services Guide)
3. My claim was rejected on the basis of servicing, servicing however would have had no effect on the failure. So it should be payable.
4. The contractual terms are unachievable. It is deceiving and misleading and FRAUDULENT to issue a product which a refund, claim or otherwise is effectively inaccessible
5. The terms in the agreement are over technical and complicated
6. At no time was I told that National Warranty was a holder of an AFSL. Furthermore it is not stated anywhere on their website. Only Davantage’s AFSL number is referenced “National Warranty Company is the trading name of Davantage Group Pty Ltd (ABN 35 161 967 166 AFSL 438157)” YOU SHOULD ALWAYS KNOW WHO YOU ARE DOING BUSINESS WITH. This is clearly Misleading and Deceptive and against almost every rule in the book!!
7. After much “googling” I found that National Warranty has its own ABN and AFSL number 290572. If you did not know that National Warranty was an actual company not just a “trading name” and if you did not know that National Warranty held its own financial services license; AND if you are still confused as to whom you are dealing with “Davantage” or “National Warranty Company” MAKE sure you let ASIC know that as well. 1300 300 630
8. At no point was I told by National Warranty that I could make a complaint to FOS, nowhere in their literature or website does it provide FOS’ contact details or inform anyone that they can make a complaint. This is an obligation under their AFSL. COMPLAIN to FOS! and if National Warranty have not told you that you can complain to FOS do not forget to mention this to FOS and ASIC. 1300 78 08 08
Some weblinks
FOS – http://www.fos.org.au/resolving-disputes/before-you-lodge-a-dispute.jsp
ASIC – www.asic.com.au
Please continue to share on this thread with any experiences that you have had with National Warranty and any success that you have with complaining to FOS and ASIC. The more everyone shares the quicker this company will stop scamming everyone!
Your AWN cover is shit, I have a problem with my Ford Mondeo which I purchased only 4 months ago, I got 2 phone numbers of mechanics to take my car to by a girl who works for AWN, I called both and they both said we don't deal with them and good luck trying to get a claim approved, now I have no where to go but my own mechanic, the girl said we will look at the claim but cant guarantee to pay as my mechanic is not approved by AWN, so it cost me $2000 to repair it. This company are disgraceful and should be shut down
Wayne said I am shocked to the extent of problems this company NWC is causing us all,But not surprised after having the misfortune of trying to make a claim to National Warranty.I to have been "in Breach " of my contract(must be the new word they are using these days),Because I went over 3months and not have reached 5000kms .Twice.I said to them ,"so if I have only done 500 kms in 3months ,I require a service "His reply was yes certainly .What a joke.I hope they get what they deserve.
SCAM SCAM SCAM!!!! AWN ( AUSTRALIAN WARRANTY NETWORK ) ARE NOTHING BUT CROOKS…
THEY OFFER YOU WARRANTY THAT DOES NOT EXIST…THEY MISLEAD YOU INTO THINKING YOU HAVE FULL COVER BUT WHEN ITS TIME TO MAKE A CLAIM THEY COME UP WITH EVERY EXCUSE TO GET AWAY FROM PAYING.
BEWARE!!!! THIS COMPANY WILL STEAL YOUR MONEY AND LEAVE YOU ON THE KERB AT TIME OF NEED…THEY MAKE ME SICK!!!
We have an AWN warranty and yes the service terms are less than half of the manufacturer requirements, our Subaru is pushing 10 years old so we dont mind too much.They sent us to an approved mechanic who openly admitted that he had never worked on a car like ours(alarm bells), subsequently after months of going to and fro and not getting the job done I decided to tell AWN that I was taking the car to a Subaru service centre and they told me that I could but Subaru would probably charge way more than their mechanic would and we would be liable for the difference, I agreed and after taking the car to Subaru having it fixed I was told by Subaru that the pump ceased because of a blockage which is a coomon issue with this type of car. I then told AWN that and if I hadnt had the run around by their preffered mechanic it would have been a pipe replacement and flushing required not a pump replacement and I also said that I wouldn't take the car anywhere but Subaru from now on.AWN told me also that an auto electrical issue that came up during this time had to be sublet by subaru because they would not pay another auto repairer anyway after all this Subaru smartly refused to have anything to do with AWN so we would have to pay the bill and get AWN to reimburse us.I did this and was reimbursed by AWN all but $50 of the total bill. thankfully .
We also had work done without getting authorisation and so they wont cover it ok this one is on me but we are about to make another claim this one too will hopefully will get paid I wonder if there is some issue with the preffered mechanincs marking up the price also I spent time getting second and third opinions about the cost of repairs and parts and recommend that others do this anyway wether dealing with warraties or not. I dont have anything to do with the dealer I bought the car from I had bad experiencces there too.
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