Protection file

Infinite Auto Protection auto warranty company ordered to cease operations in California; accused of failing to honor claims

SACRAMENTO, Calif. (KGO) – State regulators have ordered an auto warranty company to cease and desist from doing business in California. Authorities accused the company of failing to honor guarantees and operating without a license.

Infinite Auto Protection could be fined $ 500,000 by the Department of Insurance. It’s been $ 500 a day for three years until December 2018. Customers 7 On Your Side spoke with tell us they also expect the company to honor their promised refunds.

Nina Firoozan of Pleasanton filed a claim with Infinite Auto Protection for a toasted seal. The company told him that the $ 1,500 repair on his 2004 BMW did not qualify for its extended warranty coverage.

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“I was shocked. I was shocked because when I told them about politics they were so adamant that everything was covered. They will do this. They will do that,” Firoozan said.

She continued to push for the cover of Infinite, also known as Marketing Opulent. Infinite eventually offered to pay $ 150 on its $ 1,500 repair bill.

Michael Soller is Assistant Commissioner in the California Department of Insurance.

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“When you file a claim with your insurance company, that insurance is there. That’s why you pay it. It’s to pay. It’s not a negotiation,” Soller said.

Firoozan declined the $ 150 offer, but said it negotiated a $ 1,400 refund of its warranty policy.

“I didn’t think it was fair, but I thought at the time that if I could take something back, it would be better than nothing,” she said.

Rick Irrgang has filed a $ 900 claim with Infinite for a problem with his thermostat.

Infinite would agree to pay $ 300 of its claim. Rick accepted the offer, but also canceled the remainder of his policy and accepted a refund of $ 2,062 payable within 14 days.

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Firoozan and Irrgang are both waiting for their reimbursement. Firoozan says she’s been waiting for 20 months, Irrgang a little over a month.

“Well, that’s obviously frustrating,” Irrgang said. “To a lot of people, $ 2,000 doesn’t mean a lot. To me, it’s a lot of money.”

Soller of the Insurance Department says that all of this underscores the importance of making sure a business is licensed.

“There is very little recourse for people. You know, when they expect this insurance to be there for them, and when it isn’t, and it’s not properly authorized. , it really puts them in a bind, ”he said.

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“A deal is a deal. Don’t tell me you’re going to do something and don’t do it. I can’t live that way,” Irrgang said.

Infinite did not respond to our request for comment.

Check out more stories and videos from Michael Finney and 7 On Your Side.

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