I recently bought a policy with a leading warranty company. I have paid about £800 over the last two years to them for an 'extra care' policy (with franchised dealer repairs) for my 2002 Mercedes-Benz E320 CDi. I've made no claims so far, but recently my air conditioning stopped working. It was eventually diagnosed at a garage (where I had it recharged) as a leak in the condenser. I noticed that the condenser was included in my policy, so I phoned the warranty company to get authorisation to take it to a Mercedes-Benz dealer for diagnosis and repair.

First, the claims department said: "Well, its an 8-year-old car with 95000 miles, so we'd expect that part to wear out, so you're not covered". They knew the mileage and age of the car, but were quite happy to take my premium! Then he said that the part would be corroded, so it's not covered. I photographed it and it looks like new, and the claims engineer finally accepted that there is no evidence of corrosion, but then commented that other parts visible in the background looked slightly corroded (I'm not sure what that's got to do with anything?).

After much argument, the claims engineer said to get the Mercedez-Benz garage to remove the part and email him photos and then he'll decide whether he'll pay. Of course, if he chooses not to (and I'm guessing he will refuse), I'll be lumbered with the expense of the whole job at a main dealer - which I can't afford as I've paid £800 to the warranty company! What a scam, I'm left with no choice but to cancel my direct debit and cut my losses.