Problems with Dealerships and Warranties/Oxygen Sensor Issues???

Hello,

I had a check engine light and a "hybrid system needs maintenance" (or something like that) flashing message come on in my vehicle last week. I took the car to a dealer today. It is a dealer other than the one where I purchased the vehicle.

I have the extended Platinum warranty and there always seems to be trouble getting service from dealers other than the one where I purchased the car.

The dealership initially tried to sell me tires for $700. I said, "No thanks." Then they told me the problem with my vehicle was wires to an oxygen sensor. That an animal likely chewed through them (nope - I park indoors). I was told this repair would likely not be covered under the warranty. The dealership said once they describe what is wrong with the vehicle to the insurance company (re: warranty), the company would send an investigator and the claim would likely be denied. They said the cost of the repair will be $300. If I choose not to go with the repair, there will be a $120 diagnostic fee.

Does this all sound legit? Does $300 for this repair sound correct or should I shop it with other Toyota dealers? (Of course, I have to add the $120 diagnostic fee to the cost if I go elsewhere...which is criminal. You're kind of stuck with dealers doing this BS with this "warranty" BS. You go in thinking it'll be covered and then they tell you it's not and you end up in a damned-if-you-do and damned-if-you-don't situation.) Can the car be driven long distances with this issue? Home is 400 miles away and the dealers I have a better relationship with are there.

 

It's a steady light. Does the oxygen sensor affect the hybrid system though? I'm wondering if this is going to clear both issues or if I'm looking at more money.
Thanks for the info! I appreciate it!

 

Thank you for the info, Dion! I appreciate it!