I have purchased their policy 4 months ago and recently few things in my BMW started to malfunction. I brought it to the BMW dealership where they ran a diagnostic and determined that my car had an oil leak caused by a broken oil filter housing gasket and my manual gear shift override which was not functioning, needed a gear selector lever replaced. Direct Buy has denied payment for the gear selector lever under pretense that it's not completely broken and the car still drives on automatic mode. The Claim Rep actually had the gull to ask me "how did you get the car to the dealership?" and when I said that I drove it there, he exclaimed "you just proved my point -- if you could drive it to the dealership, it's not broken and we do not cover partially malfunctioning parts"
Side note: The Direct Buy Representative was exceptionally condescending and rude in his tone and conversational demeanor.
Further more, regarding the gasket: he said that they don't cover gaskets but as a curtsey to me they will take care of it this time and pay for the gasket and 1 hour of labor which is 2 hours short from the dealership estimate to replace the part.
NOW: it states in the coverage contract under all 3 sections of Engine, Transmission and Cooling system coverage sections that GASKETS AND SEALS ARE COVERD with no fine print of any sort anywhere in site. Basically, this DB rep. is now trying to tell me that they are doing me a favor by covering the $15.00 part with insufficient amount of labor that it takes to install it. The Gear Selector Lever was estimated at $1,774.00 dollars. So basically the amount that I have to pay for the gear lever + the difference in labor for the gasket replacement + the diagnostics would equal the amount that I paid for this SCAM of A WARRANTY (which was $1,999.00)
I decided, OK cut my loses immediately, return this FRADULANT WARRANTY and use the money to repair the car. How naive was I; Upon receiving cancellation request form from DB, I was prompted to sign a form that stated I were to be reimbursed $1,474.25 out of $1999.00 that I paid for it. There was absolutely no explanation as to what happened to $524.75 that they took off the price I paid for the service I never used.
Upon reviewing Cancelation contract I realized two things: ONE is that you can return your policy with in the first 30 days from purchase only paying $25.00 for the processing fee but YOU CAN"T USE THE WARRANTY DURING THE FIRST 30 DAYS of this so called grace period. TWO: After 30 days you may still Cancel the contract but "the refund will be the lesser amount calculated as a time prorated amount based upon the time since the contract was purchased " -- quoted verbatim from their contract.
So it seems to me that the first 3 months are especially expensive as they cost a quarter of the entire 4 year warranty. At this point I had a "HALELUJA MOMENT" and realized: that is how DIRECT BUY makes their money. As no person in a right mind would keep this warranty after the first time they would try to use it. And since one can't use the warranty in the first 30 days when the cancelation fee is only $25.00 they have created a convenient money making loophole by not clearly stating the fees that customers would be charged if they choose to cancel the policy after they have a chance to actually try it.
Direct Buy warranty is a total rip off and they should not be allowed to continue their scheming business.
Direct Buy Auto Warranty IS A TOTAL FRAUD!!!!!!
Monetary Loss: $1999.