NWC Tire & Wheel Warranty Class Action Lawsuit

NWC Warranty Corporation has been hit with a class action lawsuit for not honoring its “Tire & Wheel Protection Agreements” and denying warranty claims without basis. Tens of thousands of these NWC tire and wheel warranties were sold through automobile dealerships nationwide within the past six to 10 years.  

Plaintiff Joseph DeLuca filed the class action lawsuit against defendants NWC Warranty Corporation, NWC Administration, Inc. and Great American Insurance Company on behalf of himself and other consumers who purchased a “Tire & Wheel Protection Agreement” from NWC. DeLuca claims that he and other consumers who submitted claims for repair or replacement of an automobile tire or wheel covered under NWC’s Agreement had their claims denied on the grounds that their tires and/or wheel s are covered under the consumer’s primary automobile insurance policy, even though the Agreement stated no such grounds for exclusion of claims. 

DeLuca alleges in the NWC Warranty class action lawsuit that NWC engaged in a nationwide practice of denying claims that are in fact covered under these Agreements, and that Defendant Great American Insurance Company is the ultimate guarantor of these Agreements. 

According to the NWC tire warranty class action lawsuit:

“Sometime in or about early 2008, the NWC Defendants adopted policies and practices that resulted in the routine denial of claims covered by the Agreements. At this time, Defendants rewrote the terms of their standard form Agreement, expanding it from one to four pages with the addition of detailed provisions that included 26 “Exclusions” from coverage listed on the third page. These included an exclusion for tire or wheel damage that was covered by a consumer’s primary automobile insurance. Defendants thereafter began to routinely deny claims for repair or replacement of damaged tires on this basis under both the new and the pre-existing versions of their Agreement, even though the pre-existing Agreements like the one held by Plaintiff did not contain this exclusion.”

The NWC tire and wheel warranty class action lawsuit is brought on behalf of all U.S. residents who (1) obtained a Tire & Wheel Protection Agreement from NWC Warranty Corporation and/or NWC Administration that does not contain an express exclusion for claims covered by another insurance policy; (2) submitted a claim for coverage under such Agreement; and (3) had their claim denied or placed on hold and never subsequently paid on the grounds that the claimant must first exhaust any coverage provided by his or her primary automobile insurance.

The NWC lawsuit is seeking class certification, compensatory damages, punitive damages, pre- and post-judgment interest, and an order permanently enjoining Defendants from engaging in the unlawful practices alleged in the lawsuit. 

A copy of the NWC Warranty “Tire & Wheel Protection Agreement” Class Action Lawsuit can be read here.

The case is Joseph A. DeLuca, et al. v. NWC Warranty Corporation, NWC Administration, Inc. and Great American Insurance Company, Case No. 11-3768, United States District Court, Eastern District of Pennsylvania.