Industry, Pennsylvania
Not resolved

I purchased a used car with a 36 month/40,000 mile complete vehicle warranty from the Diamond Warranty Corp. The car engine failed.

The warranty company has denied my claim to have the engine repaired or replaced even though I completely fulfilled my contractual obligation to properly maintain/service the vehicle. They said because was sludge found in the engine, the engine or its parts were no longer covered under the warranty.

This reason is not listed anywhere in the contract or its exclusions. Both the dealership and the repair facility agree with me that this should be a covered claim, but the warranty company has denied all of our requests to get this claim approved.

Review about: Diamond Warranty Warranty.

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North Brunswick, New Jersey, United States #672662

I bought a car from City Line Auto Sales in Rahway, NJ. I purchased diamond warranty for 6months/175000 miles.

On June 29th I had to take my car to the shop because I felt shaking in my steering. They replaced two driveway axles (front) and I was charged $424.01 for the two axles plus labor. I contacted my warranty company since it was the weekend and nobody was in, they gave me a number to call on Monday morning to complete my claim. The repair shop changed the entire axel.

On my warranty agreement it clearly states that Drive/ Axle Assembly (Front and Rear) are covered. When I called to check the status of my claim, the adjustment specialist named Bob, told me that this is a non covered component. He claims that only the cv joints were changed when in fact, the whole axle was changed. They refused to cover every other component because he says that the cv joint is not covered.

I called the mechanic and he confirmed that the entire axel was fixed, but Diamond Warranty refused to accept my claim.

I am extremely dissatisfied with their blatant lies and refusal to pay an obviously covered component under my warranty. I have all my documentation, all my proof, yet they simply dismiss me.


I have represented warranties in the automotive industry since 1982. Where most of the problems lie are in the fact of non-disclosure.

Most warranties or "service contracts" are for covered components and are very specific about the $$ amounts covered for labor, and for Road-side assistance and towing-Representatives for the warranties should in training disclose this amount and point it out in the contract to the dealer when registering them. The Dealer is responsible for disclosing the nature of the warranty and it's terms and conditions. If they in fact or not-- there-in lies most of the problems. NO-- they are NOT bumper-to-bumper-- NO new parts will most likely NOT be inserted into cars with 100,000 miles.

This is insurance-- and like insurance some and most pre-existing ilnesses will NOT be covered.[only perhaps in the event of a large GROUP policy and the upcoming Obamacare}. The dealer must provide the proper information to the purchaser and if for any reason deemed unsuitable to warranty the automobile--DO NOT SELL A WARRANTY THAT YOU KNOW CANNOT AND WILL NOT BE HONORED DUE TO THE CONDIITON OF THE VEHICLE. Dealers take some of the responsibility even though the contract is between the Customer and the Administrating Warranty Company. If you sell cars that yo know are prone to breaking down-- make them cash cars AS-is.

Don't expect to put warranty companies out of business trying to keep sub-par inventory on the road. On the other hand, there are warranty companies that go above and beyond but will gurantee $500- $1000- $1500- and $2000 max repairs and pay VERY well. Problem is-- try replacing an engine and transmission for that! Good Luck All!!!


Make sure your customer knows what it is they are signing. Good Luck!!!!!


Been in the automotive industry for 20+ years. This is exactly why you should never ever buy an extended warranty.

No matter what, they will find a reason why you don't qualify for repairs.

Seen it happen over and over again. Even original manufacturer warrantys are mostly a joke unless you ended up with a serious lemon.


just so you people know, diamond warranty is owned and operated by former Guardian warranty employees. When guardian was sold for $70 million in 2006, a few employees started diamond warranty.

to headsup #649998

People if You Advertise Spend $$$$$ then you get great revues, ahh called buying your way in here,if this was fair and balanced,then there would be no other warranty advertisements,secondly why are posters not required to post their name and date of occurence, shop involved, and finally a real name on the post? Makes one wonder this is a for Profit post, If your the business you must join and Pay thousands of dollars to post your rebuttal $$$$$$ Money Talks here.....


As a professional in extended after market service contracts industry. It's very important to research each company.

There are some really great companies out there with A rated insurance carriers with a A rating with the better business bureau. But you have to check their site out It will give you all the info you need..

You will find Diamond has insurance but a D plus rating with the BBB... Just be a smart consumer !!!!

to Wheels of steel #782831

The BBB.You need to do Your research,there are warranty companies listed with an A rating that have double the complaints of Diamond have been sold 2-3 times to investment groups and maintain a higher rating, did you also know that The BBB does not allow any warranty companies to enroll with them? So the ones that were members prior to 2006 are grandfathered in and therefore wind up with the better ratings, before you offer the public advise Your such an expert really do your homework,it's obvious that your a competitor of Diamond otherwise why would You even be on this site, secondly just open up a G-Mail free account with a fictious name and slander away at other companies why this site does not demand real names of those complaining is ridiculous..


Diamond warranty is truly a waste of your money they are a rip off honestly do not waste your money paying for this warranty

to Greg #782833

* What Warranty Competitor are You Employed By,

If Your comments are valid post your name,vehicle make & Model, date of breakdown, shop name and address otherwise your post is fake, if real one would have no problem posting that information.


Just was ripped off by Diamond Waranty also.. the difference here, is I am not going to take this lying down !


they suck!! horrible warranty company!

the customer service is horrible!!and they will denie your claim no matter what!

they just suck! DO NOT PURCHASE!!!

to NUNI #782835

* What Warranty Competitor are You Employed By,

If Your comments are valid post your name, vehicle make & Model, date of breakdown, shop name and address, otherwise your post is fake, if real one would have no problem posting that information.


I wish I had found this page before i bought a warranty from these crooks. They held my car at a Pep Boys while they sent out an independent inspector to confirm what needed fixing on my car.

The inspector came and left. Told the people at pep boys that diamond would be contacting me. They don't have my number!

I have to take the train to work tomorrow at 5am, for the third day in a row! DON'T DO BUSINESS WITH THIS COMPANY!

to Bknitti #649994

The Name and Your ohone number is clearly listed on the contract and is mandatory,set your facts straigt and if you wnat to complain here post your real name.

to Bknitti #782836

If You purchased a contract it's mandatory that a phone number is included, If this post is real, post the date, what Pep-Boys and include your warranty number on the top right hand corner of the contract you received fro your selling dealer.


This is the worst compnay to do business with. From clueless sales rep , to the claims dept that will refuse a claim for any reason. Do not even think about buying or selling this companies products.

to unsatisfied dealer #782837

If this complaint id "Valid" and Your really a dealer post the name and the address of your dealership, most likely you were terminated by Diamond from selling their contracts due to continuous claims on vehicles sold.


rthis companty, worked oiut fine for me, they jsut did an alternator claim on my STS, and i was in and out andf didnt have any of these issues. tehy took into fact that im a senior citizen and i needed my car, they did not wait aroudn to do this here claim that was filed. i have nothing bad to say about them.


I am a customer of Diamomd Warranty and I have had nothing but rave reviews for them. Yes there is alot of crappy warranty companies out there.

I personally believe in them if your with the right company. I do my research and comment one is right. Guardian warranty has tons of complaints on here and Diamond as TWO. Diamond fixed my Mercedes with out a hitch.

I had a engine replaced and this car has 118,000 miles and they put engine in and it runs great. "Sludge" my dad taught me to change my oil so this does not happen. So, first you did not change the oil thinking it would run forever on used dirty oil.... or two the dealer sold you a bad car.

Warranty companies are there to make money but also to take care of people like me who takes good care of their vehicles.

I am glad they turned yours down because that keeps them in business to take care of people like me. Ride a bike evidently someone can not afford to buy 30 dollars to replace their oil.


below was my original comment, corrections: comment by "BO" was definitely written by GUARDIAN WARRANTY!

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