Warranty Company Charged With Selling Empty Promises As Drivers Paid Thousands But Received Denials | Carscoops

      Endurance Warranty is facing a federal lawsuit after customers claim that its high-priced service contracts failed to cover necessary repairs.

      According to the plaintiffs, Endurance allegedly sold deceptive vehicle service contracts.

      A claim from a Mercedes owner reveals delays and a $12,000 deficit.

      The lawsuit aims for class action status, refunds, and nationwide injunctive relief.

      Endurance Warranty promotes itself as a comprehensive defense against steep repair costs. However, it is this very marketing hype and the promises made that have led to a federal lawsuit against the company.

      The class-action plaintiffs accuse Endurance of offering costly "vehicle service contracts" that do not provide the advertised level of coverage.

      The complaint, submitted in the U.S. District Court for the Northern District of Illinois, is straightforward. The plaintiffs reference Endurance’s own advertising, with phrases such as “complete coverage you can count on,” quick approvals “in as little as 48 hours,” and claims of “over $300 million in paid claims” as supporting evidence of their argument.

      They report waiting months and ultimately facing significant out-of-pocket expenses, exceeding what they paid for coverage.

      A Warranty Under Scrutiny

      The lawsuit presents representative accounts to highlight the alleged pattern. A notable example is Michigan resident Daniel Kujawa, who purchased a “Premier Plus” plan for his 2013 Mercedes-Benz GL450, paying around $6,583 in April 2024.

      In July of that year, the vehicle experienced engine failure, and a shop quoted Kujawa approximately $13,515 for an engine replacement. The complaint asserts that Endurance delayed the process by demanding a lengthy engine teardown before approving any repairs.

      This teardown wasn't authorized until October, by which time the shop's estimate had risen to $19,056.50. As expected, the teardown confirmed the initial diagnosis. Despite this, Kujawa found himself in a difficult position, as Smart Auto Care, a third-party administrator associated with Endurance, provided only $7,000 towards the repair.

      At this juncture, Kujawa would need to pursue Smart Auto Care for additional funds. Endurance limits its coverage based on the vehicle's actual cash value, making it unlikely that it would approve a $19,056.50 claim for a 2013 GL450.

      Similar Instances

      Other examples highlighted in the complaint exhibit a comparable pattern, such as a 2012 Honda Civic owner who paid $2,634.10 for warranty coverage, only to have a transmission replacement request denied a year into his policy.

      These consumers invested thousands in coverage initially but often faced disillusionment when they needed it the most, waiting months and ultimately receiving denials.

      The allegations encompass breach of contract, deceptive practices, unjust enrichment, and associated state consumer law allegations on behalf of a national class. The lawsuit seeks to certify the class, recover premiums and denied repair costs, as well as seek injunctive relief and attorney's fees.