I have after market warranty from on my 04 gx 470. They would not cover the clunk issue on warranty since the drive shaft is not lubricated before. I know clunk would appear no matter how well it is lubricated because there are many people complained about the condition before the car reached 10000 miles. It is design of the shaft. Service rep. at the dealer showed TSB #DL002-07 to warranty company. Well, fidelity warranty services is making excuse on the lubrication issue only and not paying.

Any advises?
Does drive shaft needs to be lubricated often?

 

Fidelity is second only to Toyota extra care, there is not going to be too much out there that Toyota would cover that Fidelity would not. It is also going to depend on the level of coverage you were sold, whether you have an exclusionary policy or a stated coverage policy. Either way, get on the phone with Fidelity and don't take "no" for an answer, Fidelity is closely tied to Toyota, they'll take care of it eventually, you're just going to have to bug them about it.