Double car warranty legal?

I purchased a used 2010 Honda Civic LX from a small dealership. After 3 months of owning the car both axels went (no accidents). When I purchased the car, I purchased a warranty policy, suggested by the dealer. Now that I need my axels replaced, I brought it to our family mechanic. He contacted my warranty company and they will not cover the axels as there's still a Honda warranty on the car. Is there any legal actions I can take against the dealership for the axels being faulty or the fact that they didn't inform me that there was already a warranty… Obviously I wouldn't have purchased the one through them?!

No and No. You purchased an extended warranty beyond the scope of the manufacturers warranty (not a double warranty) which in the longrun will be helpful. The work was covered under warranty therefore you have no reason to sue.

Is there language in the warranty you purchased about their coverage being secondary to any existing warranties?

Totally legal.

Just take the car to a Honda dealership with a service department, and they will fix it under their warranty. Anything not covered by the Honda warranty (or after it expires) you can work with your family mechanic.

Also, what do you mean that both axles went? Did they break? That's just not something that happens without a major accident.

Take it to a honda dealership.

I had a dealership try this and the lending institution said no, because of factory warranty. This has happened twice to me. If factory covers it then get it fixed at a dealer.