Auto Insurance Claims: Ford powertrain warranty voided by recycled engine, ford powertrain warranty, ford warranties

Question
Last year, we bought a used, Ford-certified Ford Focus SES(2008), which was involved in a collision. From the insurance standpoint, it was our fault. We have State Farm. The damages were more than $8000. I was surprised the car wasn't totaled. I almost hoped it would be, since this is exactly the type of car (severe damage) we tried so hard to avoid when we were shopping for pre-owned. Anyway, we selected a reputable body shop, which was also a State Farm recommended one. The problem is that since the car was T-boned on the front driver's side and shoved by a larger vehicle, their was significant damage to the "heart" of the vehicle - the engine needed replacement and the transmission needed repair as well. When I was informed that a recycled Ford engine would be used, I called Ford Company's 1-800 customer service and asked what this recycled engine would mean for our Ford warranties (powertrain, etc.). I was told that as long as it was a Ford engine purchased directly from Ford - new or Ford recycled - the warranty should still be intact. She said that Ford does a quality check on the recycled parts that they sell. So I sent an email to my agent about my concerns that the recycled engine had to be purchased from the Ford Company to preserve my warranty, and my agent responded that my concerns/email would be forwarded to the adjuster. Then I got a phone call a few days later that my car was finished, and the paperwork stated the name of the used Ford engine provider, and it is a general business (a.k.a. junkyard) - Not Ford - so my warranties are now voided. Anything I can do about this now? I live in PA and the car was manufactured less than 30 months ago, if this makes a difference. I don't know if I can claim diminished value in PA, especially since we are the at-faulters.

Answer
Hi Ford,

There are a few issues you need to be aware of. First, you should never go to a body shop that is recommended by any insurance company (not even your own). Those relationships only exist for the benefit of the insurance company to save them money and often result in substandard repairs.

Second, when calling a big company like Ford for information relating to warrantee coverage, you should never take someones word for it over the phone. Always demand written confirmation. The reason I say this is that to my knowledge Ford does not sell salvage engines. They may sell rebuilt/reconditioned engines but I do not think they sell salvage engines.

Third, you will now need to verify in writing if ford will void their warantee on the salvage engine. You need this in writing because it will be the proof that will be required for you to go back to state farm.

Fiurth, once you have a statement in writing from Ford that your warantee in now void, you will then need to write a letter to State Farm informing them that due to the repairs that they required a salvage engine that has now voided your warantee you hereby demand payment of $5000.00 to offset against any future problems, and enclose a copy of your letter from Ford.

You should expect that they will tell you to pound salt. Then you will need to hire an attorney that specializes in going after insurance companies for breach of contract. You can not receive payment for diminished value from your own insurance policy in PA.

I hope this helps
Richard Hixenbaugh