Imagine spending thousands on a third-party warranty for your Dodge, only to end up stuck with a $5,000 repair bill. That’s exactly what happened to one Challenger owner after his warranty company refused to cover transmission failure. Their reasoning? The company claimed “rubber in the wheel well” proved he’d abused the car.

Open and shut case? Not so fast…

The owner explained: “I don’t do burnouts, and the car has 105,000 miles on it!” he explained. When he purchased the car, he also bought a third-party warranty through the Dodge dealership, expecting it to cover major repairs. Instead, he found himself fighting a bizarre accusation.

“They say they have proof I do burnouts, and their proof is the rubber in my wheel well,” he wrote on Reddit. “I never clean inside the wheel well because that seems like too much work.”

Fine print fuels frustration

Third-party warranty companies often deny claims based on vague contract language or shaky evidence. Consequently, customers are left holding the bag. “Most of the non-OEM warranties will find a way not to pay,” one Reddit commenter remarked, highlighting how common this scenario is.

In this case, the Dodge warranty provider pointed to rubber build-up as proof of stunts like burnouts. Nevertheless, the owner pushed back. “I got the car at 60K miles. How do they know the rubber isn’t from the previous owner?” he asked.

Other drivers chimed in. “Any chance you can show them some caked-on rubber from your FRONT wheel well?” one person asked. It was a good suggestion, highlighting how the rubber may have just been the product of regular daily driving and breaking.

Transmission went out and warranty company not trying to pay
byu/Goodbuds1 inAutos

Would a Dodge warranty dodge the drama?

This story highlights the risks of relying on third-party warranties. Unlike manufacturer-backed plans, such as the Dodge factory warranty, these vehicle service contracts operate more like insurance policies. This means exclusions abound. As an expert from CarEdge noted, “They’re income generators for the dealership. Everything in the finance office is negotiable.”

So, how can you protect yourself? First, always read the fine print. Second, research the company’s reputation. Finally, keep detailed records of your car’s condition to challenge dubious claims. As this Dodge Challenger owner learned, even something as trivial as tire debris could cost you thousands in denied warranty claims.

I can attest to this personally: I once saw a friend’s claim for a head gasket denied by their third-party warranty. Why? They hadn’t kept the receipts to prove every one of their oil changes was on time.

For more insights, check out this CarEdge video on how warranty companies operate. It’s a must-watch for anyone considering third-party coverage.