Endurance Warranty Services

Please be advised, the repair facility’s findings on this
failure were a failed, worn down lifter. The failure of this lifter caused
subsequent damage to the camshaft. Please note that this subsequent damage can
only happen while the vehicle is in operation. The failure of the lifter and
then the camshaft led to further damage to the engine due to metal circulation.
Please note that this metal circulation can only happen while the vehicle is in
operation. Per the consumer’s own supporting statements, Statement 6,“In this case the damage was done when the check engine
light came on. Driving the vehicle 2 more miles would not have made the damage
any worse.”The consumer’s own admission that the “damage was done”
indicates his knowledge that his operation of the vehicle led to the successive
failures. Per the consumer’s contract, page 5:“B. FILING A BREAKDOWN CLAIM: If Your Vehicle incurs a
Breakdown, You must take the following steps to file a claim: 1. Prevent
Further Damage – Take immediate action to prevent further damage to Your
Vehicle. This Contract will not cover the damage caused by continued operation
or by not securing a timely repair of the failed component. The operator of the
Vehicle is responsible for observing Vehicle warning lights and gauges, and
taking appropriate action immediately. Failure to do so may result in the
denial of Coverage.”Per the contract, page 11, coverage is not provided for:“D. […] or failure to protect Your Vehicle from further
damage when a Breakdown has occurred or failure to have Your Vehicle towed to
the service facility when continued operation may result in further damage.
Continued operation includes Your failure to observe warning lights, gauges, or
any other signs of overheating or component failure, such as fluid leakage,
slipping, knocking, or smoking, and not protecting Your Vehicle by continuing
to drive creating damage beyond the initial failure. Lack of mechanical
knowledge is not an excuse for continued operation.”Please be advised, by the consumer’s own admission, the
vehicle was driven with a known failure, with the “damage [being] done”. This
continued operation damage to the camshaft and engine cannot be authorized.At this time, the consumer’s contract is active and
Endurance is awaiting an estimate from the repair facility regarding the
initial cause of failure, the lifters. Endurance can continue the normal claims
process once this estimate is received.

Please note, the consumer's complaint per the repair facility estimate was a flashing check engine light, the vehicle running rough, and a loud knocking. In addition, the vehicle's owner's manual states the following on page 301 in regards to the check engine light, "Prolonged driving with the MIL on could cause damage to the engine control system. It also could affect fuel economy and drivability. If the MIL is flashing, severe catalytic converter damage and power loss will soon occur. Immediate service is required" and on page 321, "If the light is flashing when the engine is running, immediate service is required. You may experience reduced performance, an elevated/rough idle or engine stall and your vehicle may require towing".The consumer's contract specifies that coverage will be excluded for, "failure to protect Your Vehicle from further damage when a Breakdown has occurred or failure to have Your Vehicle towed to the service facility when continued operation may result in further damage. Continued operation includes Your failure to observe warning lights, gauges, or any other signs of overheating or component failure, such as fluid leakage, slipping, knocking, or smoking, and not protecting Your Vehicle by continuing to drive creating damage beyond the initial failure. Lack of mechanical knowledge is not an excuse for continued operation."As the consumer witnessed several signs of failure such including rough operation, a flashing warning light, and a knocking sound and did not protect the vehicle from further damage, Endurance is only able to authorize the original breakdown and not the additional damage beyond the initial failure caused by continued operation.

At this time, Endurance is awaiting the estimate for repair of the lifter, which is the original failure. Endurance has also offered to leverage its longevity in the industry to assist the consumer in sourcing parts to decrease the out of pocket cost.

On 2/25/20, the consumer's repair facility reported a failure to the transfer case. The repair facility diagnosed the failure as a leaking pinion seal. As the consumer's contract does not list seals and gaskets as eligible failures, the claim could not be authorized.

On 3/4/20, a new repair facility reported that the vehicle was driven in to their facility with a transfer case failure. As this was the second report of this failure, an inspector was sent to confirm the failures and vehicle status. The inspection report demonstrated that the previous failure was not corrected, along with a repair order from the repair facility with a note stating "Don't say gasket or seal". As this was the same, previously denied failure, simply with instructions to arbitrarily change the diagnosis, the repair could not be authorized.

Subsequent to the denial, the consumer contacted Endurance. In the interest of customer service, Endurance provided the customer with a discount and payment assistance. At this time, the contract is active and eligible for future claims.

Endurance believes that this complaint is filed with the wrong company.

On 4/9/18, the consumer activated an Endurance Select Premier vehicle service contract.

On 6/19/18, a claim was filed inside the waiting period for lifters in the consumer's engine.

On 9/24/18, the consumer contacted Endurance to verify that the account payment plan was current. This was the last contact that Endurance has had with this consumer.

No other claim has been filed under this contract since that time and no transmission claim has ever been filed under this contract. Endurance believes that the consumer may have purchased coverage from another company that subsequently denied his transmission claim, as no such claim has been filed under this contract.

Upon receipt of this complaint, Endurance could locate only one contract, ***, based on the phone number provided with the complaint. Upon the consumer's clarification that the complaint was in regards to Contract ***, Endurance performed an internal investigation into the sale, administration, and handlign of the consumer's contract.

The consumer’s contract (attached) lists transmission
coverage as follows:B. Secure Plus Coverage: Secure Plus Coverage covers the
following listed components of this Section IX. B.3. TRANSMISSION: (Automatic or Manual) Transmission Case and
all Internally Lubricated Parts plus: Torque Converter; Flywheel/Flex Plate;
Vacuum Modulator; Electronic Shift Control Unit; Transmission Cooler;
Transmission Mounts; Oil Pan; Slave/Clutch Master Cylinder; Pilot Bearing; and
Throw-Out Bearing. (Transmission case is covered if damage is due to the
Breakdown of a Covered Part).

Originally, the consumer’s repair facility believed that the
failure was internal to the transmission. After teardown and additional
diagnosis, it was determined that there was no internal failure to the
transmission and that the failure was the DSG clutch, which is not contained
within the transmission case. As the DSG clutch is not internally lubricated
and it is also not listed for coverage, it is not eligible under the contract
and the repair cannot be covered.

Subsequent to the denial, the consumer contacted Endurance
and requested to cancel the contract. Upon transfer to a Sr. Account Manager to
complete the cancellation process, the consumer asked for an explanation of the
denial. After the Account Manager completed the explanation, the consumer
stated that he no longer wanted to cancel the contract.

At this time, the contract is active per the consumer’s
request, and eligible for future claims.

On 3/27, Endurance requested teardown of the engine to find the specific cause of failure and extent of damages. This is necessary when the specific cause cannot otherwise be determined, and allows Endurance to ensure that the consumer receives the proper and complete repair. Endurance explained the necessity of this process several times to the consumer authorized teardown on 3/31.On 4/2, the repair facility informed Endurance that teardown had been completed. Endurance dispatched an independent, third-party inspector to confirm the cause of failure and extent of damages.

On 4/8, after receiving the inspection report and confirming with the repair facility, the engine claim was approved in the amount of $5,570.89.

On 4/10, the repair facility had completed the repair and Endurance issued payment.Endurance appreciates the consumer's patience during the teardown process and is satisfied that the result of the teardown was an authorization for the consumer.

Please be advised, the consumer's contract (attached) has a 30 day and 1000 mile waiting period. Per the consumer's contract:I. DEFINITIONS:The following definitions apply to words frequently used in this Contract:Waiting Period means the period of time and mileage that must transpire before a claim may be filed hereunder. The Waiting Period is equal to thirty (30) days and one thousand (1,000) miles from the Contract purchase date and odometer mileage at Contract purchase date.IV. COVERAGE PERIOD:Coverage under this Contract begins upon expiration of the Waiting Period and will expire on the Expiration Date or Mileage measured from the Effective Date and Mileage.The consumer purchased the contract on 2/17/20, reporting the exact mileage to be 151,030. A review of the call recording confirmed that the consumer reported the reading as exact.The repair facility reported that the vehicle entered the shop on 3/19/20, at a mileage of 152,012. While the vehicle was 1 day out of the waiting period, only 982 miles had elapsed since sale. The waiting period specifies 30 days and 1000 miles, and the 1000 miles had not elapsed, putting the vehicle inside the waiting period by mileage. As failures that occur inside the waiting period are pre-existing to the coverage, the repair could not be authorized.On 3/27, a Senior Account Manager from Endurance advised the consumer of several other options for assistance that Endurance can provide. At this time, the consumer's contract is active and eligible for future claims.

As part of the normal claims process, Endurance requested maintenance documentation to verify that the contract holder's maintenance requirements were satisfied. The vehicle's owner's manual states the following:"Under no circumstances should oil change intervals exceed 10,000 miles (16,000 km), twelve months or 350 hours of engine run time, whichever comes first."Upon purchase of the contract on 11/1/19, the consumer certified her exact mileage to be 109,037. Per the owner's manual, this means that, assuming the consumer had an oil change on the day of activation, the consumer's vehicle would be due for an oil change no later than 119,037 miles. As the consumer has not provided maintenance documentation to show an oil change around purchase, this means that the actual maximum mileage reading would be even less.

The only document provided by the consumer showed an oil change on 3-12-20 at 125,827 miles. This was 16,790 miles greater than the activation mileage. This means that the consumer exceeded the maximum mileage interval by AT LEAST 6,790 miles, and likely more as it is unknown when the last oil change occurred.As the consumer had not upheld the contract holder's maintenance requirements, the claim was declined due to lack of maintenance.Per the contract, page 4:VIII. CONTRACT HOLDER’S RESPONSIBILITIES:A. CONTRACT HOLDER’S MAINTENANCE REQUIREMENTS:You must have Your Vehicle checked and serviced in accordance with the manufacturer’s recommendations, as outlined in the Owner’s Manual. NOTE: Your Owner’s Manual lists different servicing recommendations based on Your individual driving habits and climate conditions. You are required to follow the maintenance schedule that applies to Your driving habits and climate conditions. Failure to follow the manufacturer’s recommendations that apply to Your driving habits and climate conditions may result in the denial of Coverage.Per the contract, page 11, coverage is not provided:D. For any part that a repair facility or manufacturer recommends or requires that it be replaced or repaired, updated, and is not a covered mechanical Breakdown, is Your responsibility and expense. For any Breakdown caused by misuse, abuse, negligence, lack of normal maintenance required by the manufacturer’s maintenance schedule for Your Vehicle or improper servicing or repairs subsequent to purchase. At this time, the consumer's contract remains active and eligible for future claims. If the consumer is able to provide verifiable documentation that the maintenance interval was not exceeded, Endurance will review.