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Extended warranty shopper be very aware! My bad expereience with 1sourceautowarranty.com

wws5wws5 Member Posts: 1
Hope you all can learn from my lesson and not fall through the same pitfuall and waste your hard-earned money.

Here is the story...

When I purchased my car (98 Audi A6) about 1.5 months ago, I drove it almost cross country without any problems. It had 60,705 miles on it.

It had its 60k service before I bought the car, and the audi dealer manager I spoke to said they didn't notice ANY problem with the car.

Then at 62,450 miles or 4 days ago,
1. Airbag light went on.
2. I noticed that I saw a drop of oil in my garage.
3. The morning I brought my car in, the engine died on my while I was at a stop light, so I figured that I have them look into it too.

My service dept. diagnosed that
1. the car needed a new driver's-side side airbag.
2. The oil pan was leaking
3. the car needed to have the MAF sensor looked at, dont' know exact problem yet.
4. The car will need new tie-rods.

1sourceautowarranty sent someone out to look at the car and noted that the oil pan had a crack, and likely was pre-existing. I personally didn't even notice a drop of oil until few days ago, but who knows.

Based on that, they decided that the car was misrepresented to them, and the car did have previous problem, and denied ALL my claims.

To be fair, one of the item which I didn't notice was worn tie-rods, which I can understand is a pre-sale condition. In that case, they don't have to pay for that. But new problems that came up which I purchased the insurance for, they sure didn't stand behind.

Even the whole service department at my local Audi dealership had a full day of discussion about this. Their conclusion is that they are telling all their customers to avoid 1sourceautowarranty.com. My service manager could not believe what an outright fraud 1sourceautowarranty practices.

Again, I have proof that my car was in fine condition when I bought the car from another Audi dealership. 1sourceautowarranty just don't want to even hear about it-- it's like talking to a 3 year old who screams "la la la" with his ears covered. Their claims manager was not interested in receiving my fax on pre-purchase condition from the Audi dealership. Nor were they interested in talking to the previous service manager who last serviced that car at 60k without problems, when the service manager told me to have 1sourceautowarranty talk to them.

The claims manager said that how is it possible that all these problems just happen like that. What can I say. I got bad luck with my used car, that's why I bought the insurance when I purchased a used car, and I expect them to stand behind their claims.

According to them, I suppose anything can be a "presale condition" when it comes to a used car. As long as they believe that the problem could have existed way back, they can deny your claim just like that. Despite whatever proof you have. I can understand if they can't cover pre-existing conditions, but they are using a possible previous problem to deny all the claims.

Consumers needs to be more protected.

I have cancelled my insurance with them, because in my mind, it is as good as spending the 2k insurance premium on the repairs that comes up later. Besides, you won't have to waste your time talking to incompetent and rude claims people. And when I say rude, that is no exaggeration. One of their rep answered the phone as "This is Mike". I had to ask if this is "1sourceautowarranty.com claims dept", and his attitude was "no duh?" When I inquired about why the claim was denied, I counted 14 times, when he just repeated "It's denied, and there is nothing you can do to change that." It's like talking to a monkey. How would anyone like to deal with that?

Consumers be very, very aware when you shop for extended warranty. I made my mistake with buying from 1sourceautowarranty.com, and I hope no one else will.


  • alcanalcan Member Posts: 2,550
    Although I can understand your frustration and disappointment with the extended warranty company, your post raises a huge red flag. If the dealer's pre-sale inspection missed something as obvious as the worn tie rods, a safety related item, it would indicate to me that the vehicle was not properly inspected before being sold to you, and some of your concerns were probably pre-existing conditions. Dealers regularly sell cars with known defects to reduce their reconditioning costs, then sell aftermarket warranties to increase their profits and let somebody else look after the problems. Suggest you take the dealer to task on this.
  • armtdmarmtdm Member Posts: 2,057
    regardless of who sells the policies. I guess to be safe they must inspect the cars. I tried to buy one (a policy on a 97 with 5,500 miles) and questioned whether I was even eligile, low mileage but over original warranty period. Salesman says fine, you will be covered. I insisted he call the insuring company due to fuzzy language in the agreement about who can be covered. . They said no way. A sleazy industry (along with the salemen) and I have yet to hear of claims being paid without a hassle for anyone!!!

    Used car salesmen have migrated to become extended warranty salesmen.
  • wilcoxwilcox Member Posts: 582
    There are too many gotchas! Customer Service....put a big "No" inbetween those two words.
  • patpat Member Posts: 10,421
    Our Finance, Warranty & Insurance Board is the best place for this conversation. Just use the drop down box on the top left of this page (Select Topic) to go right there.

    Sedans and Women's Auto Center Message Boards
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