Warranty repair denied

[Pherris]

I find myself in an odd position. I have a 2010 Opti Pro X/S that I brought in to have it winterized and asked the dealer to also check into an issue of a knocking sound that the motor was making. After about 2 weeks the dealer called and said my boat was ready for pick up. When I picked up my boat they said the knocking sound was a result of a bad lower unit and they replaced it and it was covered by my Merc warranty. So today I get a call from the shop that did the repair telling me the warranty claim was denied because the lower unit issue was a result of direct impact to the lower unit. The dealer said I should call my insurance company and file a claim or pay the $4200 or bring the boat back and they would put my old lower unit back in. I have never hit anything and even the dealer said there was no visible damage that would indicate hitting something but Mercury said they determined from internal examination that the issue was the result of impact so would not be covered. I called my insurance agent and he said it would be highly unlikely the insurance would pay for repairs that have been completed and were not approved and I should tell the dealer he should have never done any work on the motor without authorization from Merc and to tell the dealer to take it up with them. I am of the same opinion but wondered if anyone else has had an issue like this or how you would handle it at this point.

[MuskieJunkie]

This is a really interesting thread, I'll be interested to hear how it turns out. Just a reminder to everyone how this all started:

I brought in to have it winterized and asked the dealer to also check into an issue of a knocking sound that the motor was making.

So the short version (from what I understand) Pherris asked them to check it out, and they did $2k+ of work on their own. No input from Pherris, no questions asked of him, no evidence of damage caused by an accident, no talk of insurance anything. Now they're coming back after the deal is said and done and shaking him down for money.

[CaptainMusky]

The first thing I thought was the dealership was trying to double dip from Merc and his insurance company. I am very interested in the definition of "impact damage" without striking something. Seems fishy to me.

[learning]

Bent skag or Nicks in the prop could be considered impact damage. And if you have many nicks in the prop or damaged skag could be considered wear and tear by the insurance company. Make sure you are very pinpointed when turning the claim in or if the dealer gives too much info you are going to get it denied. A good agent will walk you through the process not let you standing.

[CaptainMusky]

This is the quote I was specifically referring to: "(Apparently the term" impact hit" does not necessarily mean you hit anything and is used fairly frequently in denied claims by Mercury for lower unit issues. It seems is can be caused by things other than "hitting" something as I discovered searching the internet)"

I would like to know what some examples of these "impact hits" or impact damage that are not caused by hitting something.

Seems like a copout on the behalf of Mercury IMO.

[Black_Bay]

Care to share the dealers name?

[Pherris]

Well so far I have not heard back from the dealer or insurance company. I will not name the dealer other then to say they are an authorized Mercury dealer and I will not name the insurance company other then they are both well known.

Regarding "impact hit" apparently if there is any visible damage to the prop or skag (mine had neither) and you have a lower unit claim in most instances it will result in rejection of a warranty claim siting "impact hit" from what I have researched. Also when I questioned the dealer he said that I did not necessarily have to hit anything to cause the problem. On a side note the warranty states that if the motor is used for racing or other competitive events it voids the warranty and some people have been denied warranty coverage because the use their boats in tournaments. i am not sure of the speciffics on that just a note of caution if you fish tournaments. I will update when I have one on my situation.

[aanderud]

Another thing to consider is that if you submit a claim on your homeowner's insurance, they can raise your rates -- and even if they don't raise them immediately, you're going to be in a higher risk pool and might be paying significantly more should you decide to switch companies or even if you change your coverage with the same company in the next few yeas -- say you buy a different house. So while some people here have posted "win/win" if your insurance company pays out, it's really not. It's a win for Merc and/or the dealer in that case because they're not using THEIR OWN funds to replace this lower unit.

[Pherris]

Another thing to consider is that if you submit a claim on your homeowner's insurance, they can raise your rates -- and even if they don't raise them immediately, you're going to be in a higher risk pool and might be paying significantly more should you decide to switch companies or even if you change your coverage with the same company in the next few yeas -- say you buy a different house. So while some people here have posted "win/win" if your insurance company pays out, it's really not. It's a win for Merc and/or the dealer in that case because they're not using THEIR OWN funds to replace this lower unit.

I have a stand alone marine policy on the boat so this would not be a homeowner policy claim.

[learning]

If you put a claim in you will hear from the insurance company with 48 hours asking for your detail. Payment should be within a week for the lower unit. The insurance company will then go after Merc to see if they can collect and if they do you will receive your deductible back. Getting deductible back will take 6 months or longer. Call your agent and ask for claim number so you know a claim was turned in.

[learning]

Pherris, The insurance company will research the claim to determine who is at fault and determine who should pay. I said its a win because your lower unit is fixed and you have someone other than you determining fault. If you do not like that win win take the boat back and ask to have your lower unit put back on for free. You said the dealer will do that.

[CaptainMusky]

I say he tells the dealer to pound sand. Keep the new lower unit for free and find a new dealer to get work done. They should have never done the work in the first place if it wasn't authorized by him OR officially approved by merc.

That's a win win in my book.

[Down Deep]

On a side note the warranty states that if the motor is used for racing or other competitive events it voids the warranty and some people have been denied warranty coverage because the use their boats in tournaments. i am not sure of the speciffics on that just a note of caution if you fish tournaments. I will update when I have one on my situation.

Denial of an insurance claim for fishing tournaments is likely because some boat owners are using the craft as part of a commercial business which would require business insurance for coverage.

[LightningBG]

I'm really surprised by some of the responses on here. I do own a business and we have made mistakes on estimates and billing. Most of the time we eat the mistake. Sometimes the customer pays on exceeded estimates because we have gained their trust and they know if we did something beyond our estimate, it needed it and their was no other option. I would only consider exceeding an estimate if I know the customer well and feel it's appropriate. Any instance like this is normally small in scale. I take the risk in those cases. If they baulk at the increased price, I eat it. We'd never consider calling a customer about a bill that went from $100 to $4100. It's just part of business. Often times we'll even cover repairs on things out of warranty out of good will. If I EVER have a problem with a manufacturer or supplier, I would NEVER bring a customer into the mix. That's my fight with my supplier. They wouldn't have bought a Merc, they would have bought a LightningBG motor that happens to be manufactured by Merc. They are my customer, not Merc's customer. They didn't pay Merc anything, they paid me!

That being said. The dealer is skating around trying to figure out how to get out of their own mistake, which is understandable, but not legit coming after the customer.

They stated it was under warranty, they said there was no signs of impact. Enough said. Based on their "expert opinion" their was no sign of impact damage. Therefore, given the time period, it's warranty. Quite simple.

If it is a legitimate warranty claim, which this feels like it probably is (per the the facts we have), the dealer needs to fight it out with Merc. They have leverage, the customer has none. If Merc doesn't want to pay out for a legitimate claim, and I was the dealer, I'd pack up my Merc signs and mail them to the company. Tell them to cancel all future orders. I'd then start contacting Honda and Yamaha and whoever else and see what their lineup looks like. Is Merc going to give up an account that might be buying dozens of motors per year over one lower unit that probably cost them less than 1K? Probably not.

Insurance? I wouldn't have even gotten them involved. I would have asked to see the accident damage with my own two eyes and let them sell me on that before any insurance anything.

Merc. Here's the culprit. They don't want to pay. Simple as that. I'm guessing they figure they can deny X amount of warranty claims and get away with a certain percentage of them. Someone just needs to stand up to them. That someone should be the dealer. The dealer should be in your corner. You (the customer) are the one keeping the business in business, not their supplier.

[LightningBG]

And I would certainly not bring this boat back to this dealer until this is all resolved. No need to get into a situation where they are holding the boat ransom. And I'd keep an eye on my credit card statement and make sure they aren't trying to charge it. That would be a big no no for the business. No matter what, you wouldn't be liable for the charge, but you'd have to dispute it in a timely manner. If they get a big charge back or have them often, that will increase the rates they have to pay to the CC companies, which they should try to avoid.

And I wouldn't give that lower unit back unless ordered to by the courts (or somewhere down the road you feel their is a equitable solution, which I still would avoid giving it back). They will try to work it all out between the two parties (or 3 parties if the insurance company is gullable enough to get involved).

[CaptainMusky]

Lightning, why are you surprised by the responses? By your own admission you are a business owner and would have never stuck this on the customer so why the surprise when someone says this dealer is wrong in what they did? You admitted yourself you wouldn't do it. The work was never authorized or approved in the first place. As far as I'm concerned the dealer taking the initiative to complete the work based on the assumption it would be warranty and not notifying the customer is assuming ALL responsibility and risk.

Yes mistakes happen, but this is one they cannot afford to make very often or they will not be in business for long.

[LightningBG]

Lightning, why are you surprised by the responses? By your own admission you are a business owner and would have never stuck this on the customer so why the surprise when someone says this dealer is wrong in what they did? You admitted yourself you wouldn't do it. The work was never authorized or approved in the first place. As far as I'm concerned the dealer taking the initiative to complete the work based on the assumption it would be warranty and not notifying the customer is assuming ALL responsibility and risk.

Yes mistakes happen, but this is one they cannot afford to make very often or they will not be in business for long.

Im not sure you read my response in the right direction. I'm surprised at the opposite responses musky.

I surprised people are saying to negotiate with the dealer. It's the dealers problem who needs to take it up with merc.

[CaptainMusky]

Ah, gotcha.

For what its worth, he has commented that the dealer called and the repair will be covered by warranty so that's good. Since this site is split in two there are posts missing.

[LightningBG]

Good to hear

[00Buckshot]

Glad the issue is resolved. Regarding the possibility of filing an insurance claim...there needs to be an occurrence. This is something that happens at a known time and known place. The OP stated that he never hit anything, which means there was no occurrence. It would have been highly unlikely that any insurance company would have paid for the type of damage in this situation.

[delcecchi]

Glad the issue is resolved. Regarding the possibility of filing an insurance claim...there needs to be an occurrence. This is something that happens at a known time and known place. The OP stated that he never hit anything, which means there was no occurrence. It would have been highly unlikely that any insurance company would have paid for the type of damage in this situation.

If I were a cynic I might say that the dealer tried to run a scam and when it didn't work, let it go.

How much do you trust that dealer?