Endurance Warranty got sued in federal court after customers say expensive service contracts failed to cover repairs
- Plaintiffs allege Endurance sold misleading vehicle service contracts.
- Mercedes owner’s engine claim shows delays and a $12,000 shortfall.
- Complaint seeks class status, refunds, and injunctive relief nationwide.
Endurance Warranty markets itself as a one-stop shield against ruinous repair bills. Now, it’s that type of marketing hype and the promises they made that have the company in the crosshairs of a federal lawsuit.
Plaintiffs in the class action group accuse Endurance of selling expensive “vehicle service contracts” that don’t actually deliver the coverage its ads show.
More: Tesla Accused Of Inflating Mileage With Software To Deny Warranty Repairs
The complaint, filed in the U.S. District Court for the Northern District of Illinois, pulls no punches. Plaintiffs point out Endurance’s own marketing, including lines like “complete coverage you can count on,” approvals “in as little as 48 hours,” and claims of “over $300 million in paid claims” as evidence of their point.
They say they waited for months at times, only to end up out of pocket for thousands more than they already paid for coverage.
A Warranty Tested
The filing lays out representative stories to illustrate the alleged pattern. One of the clearest examples is Michigan plaintiff Daniel Kujawa, who bought a “Premier Plus” plan for his 2013 Mercedes-Benz GL450 and paid about $6,583 in April of 2024.
In July of that same year, the SUV suffered engine failure. A shop quoted Kujawa roughly $13,515 to replace the engine. The suit claims Endurance stalled the process by requiring a time-consuming engine teardown before authorizing any work.
That process didn’t get approved until October, and when it did, the shop’s quote had climbed to $19,056.50. Unsurprisingly, the teardown confirmed the original diagnosis. Despite that, Kujawa was up a creek without a paddle, as it were. Smart Auto Care, a third-party administrator linked to Endurance, offered him just $7,000 toward the repair.
At this point, Kujawa would have to go after Smart Auto Care if he wanted more. Endurance caps its coverage based on the vehicle’s actual cash value. In other words, it’s highly unlikely that it was ever going to agree to paying a $19,056.50 bill for a 2013 GL450.
More Claims, Same Story
Other cases cited in the complaint follow a similar pattern, including a 2012 Honda Civic owner who paid $2,634.10 for his warranty coverage, only to get denied for a transmission replacement a year after his policy went into effect.
These consumers paid several thousand dollars for coverage in the first place. Then, when they needed it the most, they allegedly waited for months only to end up disappointed in the end.
The totality of the allegations includes breach of contract, deceptive practices, unjust enrichment, and related state consumer law claims on behalf of a nationwide class. The suit seeks to certify the class, recover payments for premiums and denied repairs, and seek injunctive relief and attorneys’ fees.
