Here's a copy of my complaint to the Denver BBB:

Dear BBB,

Thank you for taking up my case. I am filing a complaint against BBB member:

1SourceWarranty.Com
5600 S. Quebec
Suite 300-B
Greenwood Village, CO 80111

My address is:

Dan C.
XXXX
XXXX

I purchased Diamond Coverage, which is "bumper-to-bumper" coverage for 10 years, up to 100,000 miles. If I drive the car, the brake rotor, which looks like a steel platter attached to the wheel hub glows hot, accompanied by the smell of burning brakes. I took my car to a qualified repair shop and they informed me that the right brake caliper failed and ruined the pads and rotor. The shop submitted a claim for the caliper, rotor, and pads. Initially, my shop was told that 1Source would not cover the labor for the caliper because I was liable for the pads and rotors and the labor for that would cover the labor to replace the caliper. However, my shop was able to convince them to grant labor to replace the covered component.

1SourceWarranty has declined to cover the pads and rotor, even after I contacted the Executive Director and the National Claims Adjuster.

When I was notified by the adjuster at 1Source that the claim was denied for the pads and rotors, I called the 1SourceWarranty.Com sales line and asked, "If a brake caliper failed, would the pads and rotor be covered." The response was, "Yes, we would restore the brake system to new condition."

I had previously contracted with a different reputable auto warranty company, but took a loss and canceled that coverage after 45 days in order to purchase the Diamond Coverage policy from 1SourceWarranty, because it is such good coverage and they are a BBB Online member.

How I would like this resolved:
I would like 1SourceWarranty to pay labor and parts to repair the brake system in accord with the Diamond Coverage Service agreement. (I have attached a copy from their website for your review.) This means, that I would like them to cover:

- labor to perform the replacement of the following:
- brake caliper
- set of brake pads
- brake rotor
- brake lines, if necessary
- brake fluid necessary to complete the above repairs

---------------------------------------------------------------------------------------------

I'm providing additional service agreement information, including an e-mail I received from 1SourceWarranty informing me why they decided against my claim.

>> Here's my response to their e-mail below

Exclusion M as cited by 1SourceWarranty.Com has no bearing on my case. In this case, the non-covered component did not fail/malfunction and cause the covered component to fail, nor was it replaced or repaired.

Regarding the brake items in Parts and Services not covered, those items are excluded as "The performance of normal maintenance services ... scheduled replacement of parts and wear items, service adjustments ..." However, again this is not relevant because the pads and rotors are NOT being replaced as wear items, for normal maintenance, etc. They are being replaced as consequential damage as a direct result of the failure of a covered component.

Dan Carnesciali
Manager
Professional Services

>>> "Loni Hale" <LHale@1sourceautowarranty.com> 12/13/01 09:13AM >>>

Mr. Carnesciali,

In reviewing your claim for coverage on the rotor and break pads, these
items, per your VSA terms and conditions, will not be covered under
section(s):
III. VSA Coverage Plans, A. Diamond Coverage
Parts and Services not covered:
Brake System: brake lining/shoes, brake pads, rotors, drums, neoprene
hoses/lines

IV. VSA Exclusions, item M:
Repair/replacement of a covered component/part as the result of a Failure of
a non-covered component/part, or repair/replacement of any non-covered
parts.

Please let me know if you have questions, thank you.

Loni Hale
Executive Director

 

I hope you kick there a.... They're in the wrong!!