MORRISTOWN, Tenn. — Millions of people across the country purchase warranties for used vehicles. When a Morristown man’s jeep broke down recently, he filed a claim with his warranty company, but it was rejected. The warranty company claims his vehicle had exceeded the amount of mileage allowed under the contract.
The denial of his claim surprised Dennis Morgan, considering the amount of money he paid for the warranty on his Jeep. Morgan bought a 2014 Wrangler in November 2021. It had 109,000 miles on it at the time.
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Morgan also purchased a high-mileage extended warranty with Reliance Protection to help protect him financially if he needed an expensive repair. He paid $5,789 for a 60-month unlimited plan for up to 200,000 miles. He even paid an optional charge to cover the engine’s seals and gaskets. However, the extra coverage he paid for didn’t turn out the way he expected.
When the check engine light came on in May 2025, he took the car to Farris Jeep, a certified repair shop in Morristown, where a mechanic checked under the hood to see what was wrong with the engine. The recommendation from Farris Jeep was to replace the cylinder head. The estimated cost to fix it was $4,438. However, when Farris Jeep sent the estimate to Reliance Protection, it was rejected.
“It was supposed to be covered by our warranty, but they denied it,” said Morgan. “I could not understand why they would not go ahead and honor the warranty. We signed for 60 months, $5,780 for the warranty. […] They should have covered that. We were definitely under the warranty coverage and they denied us.”
Today, the Jeep’s odometer reads 178,000 miles. To Morgan’s calculation, his 200,000-mile warranty had not expired. But Reliance Protection sent paperwork, which Morgan said he did not receive when he signed the agreement four years ago.
“It said that there was a 150,000-mile cut-off for the seals and gaskets that we were not aware of,” said Morgan.
Reliance Protection sent this explanation to Morgan, because “Mr. Morgan’s vehicle odometer had exceeded 150,000 miles, seals and gaskets coverage is only covered in conjunction with a covered repair. […] Farris dealership determined the cause of failure to the engine was caused by a non-covered valve seal. The claim was denied.”
“We were not aware of it at all. If I were aware of it originally in 2021, when I did this document, I would never have gone for five years. I would have gone for three,” said Morgan.
Morgan hired an attorney who sent a letter to Reliance disputing their explanation of the denial. Morgan returned to Farris Jeep and paid $4,400 out of his own pocket for the repair. Now, he wants Reliance to pay up.
“I want my money back. I want my money back,” he said.
Not only does he want Reliance to pay the $4,400, but he wants to continue his coverage since he has another year left. We reached out to the warranty company about Morgan’s situation. Their response: they “can’t comment” any further.
Consumer advocates say when you agree to a high-mileage, third-party warranty, make sure you get in writing that you have received all of the documents from the salesperson. As Morgan told us, he had only received two pages of his warranty, and he said that the 150,000-mile limit was not explained on either page.
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Understanding the Warranty Terms
Morgan believes he was within the terms of his warranty when the issue occurred. According to the contract, the warranty covers up to 200,000 miles. At the time of the breakdown, his Jeep had only reached approximately 140,000 miles. This discrepancy has led to confusion and frustration for Morgan, who feels that the company is not fulfilling its obligations.
- The warranty was purchased for a specific period of 60 months.
- The coverage includes repairs related to the engine, including parts like seals and gaskets.
- Despite these terms, the company has refused to cover the necessary repairs.
The Repair Process and Denial
After receiving the diagnosis from Farris Jeep, Morgan contacted Reliance Protection to file a claim. He provided all the necessary documentation, including the repair estimate and the mechanic’s report. However, the claim was denied without explanation.
- Morgan stated that he was shocked by the rejection, as the repairs were clearly within the scope of the warranty.
- He emphasized that he had paid for additional coverage, which he believed would ensure protection against such issues.
- The denial left him in a difficult position, as the repair costs are significant and he cannot afford to pay them out of pocket.
What Can Be Done?
Morgan is now exploring his options to resolve this situation. He is considering legal action to challenge the denial and seek compensation for the expenses incurred. Additionally, he plans to reach out to consumer protection agencies for assistance.
- He may need to consult with a lawyer to understand his rights under the warranty contract.
- Contacting local consumer advocacy groups could provide support and guidance.
- Sharing his story publicly may raise awareness and pressure the company to reconsider its decision.
The Broader Implications
This situation highlights the importance of understanding the terms and conditions of any warranty before purchasing. Consumers should carefully review the coverage details, including mileage limits and exclusions, to avoid unexpected denials.
- Reading the fine print is crucial to avoid surprises later.
- Keeping detailed records of all transactions and communications can be beneficial in disputes.
- Being proactive in addressing issues with the warranty company can help in resolving conflicts more effectively.
Morgan’s experience serves as a reminder that while warranties can offer peace of mind, they come with their own set of rules and limitations. It is essential for consumers to be informed and prepared to advocate for themselves when necessary.
