Complaints

This profile includes complaints for American Auto Guardian, LLC's headquarters and its corporate-owned locations. To view all corporate locations, see Find Local Branches.

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  American Auto Guardian, LLC

  1700 E Golf Rd Ste 700 Schaumburg, IL 60173-5839

  
• 

  American Auto Guardian, LLC

  PO Box 610 Mount Prospect, IL 60056-0610

  
• 

  American Auto Guardian, LLC

  PO Box 925 Arlington Heights, IL 60006-0925

  
• 

  American Auto Guardian, LLC

  13708 Lakefront Dr Earth City, MO 63045

The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

• Initial Complaint

  Date:04/28/2025

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I took my car to ******* of ********** for an oil change on 2/26/2025. Weeks later, I noticed a whining noise and contacted the dealership. They scheduled an appointment for 4/8/2025, confirmed the noise wasnt related to the oil change, and suspected an issue with the transfer case. They scheduled another appointment for diagnostics.On 4/24/2025, they confirmed the transfer case was the problem and contacted the warranty company, which requested they dismantle the unit to confirm the failure. The dealership refused, explaining it couldnt be reassembled and would cost $6,000 in labor. An inspector came on 4/25/2025, but no findings were shared with the dealership.On 4/28/2025, I called AAGI to check the claims status. ****** informed me it was denied due to fluid leakage in the transfer case. When I noted my warranty covers the transfer case, he referenced a clause excluding it. Without the contract on hand, I couldnt rebut. I asked about an appeal, and he said a supervisor would call me back.Later, I called again and spoke with *****, explaining the service department said the failure wasnt predictable until the noise started and the unit wasnt repairable. ***** repeated that a supervisor would call back. At 3:08 PM, I spoke with Angel ************* who upheld the denial due to fluid leakage, despite acknowledging the transfer case wasnt repairable and that the break in the seal was the initial cause of the problem. I reviewed my contract, which under Section 10 (Drive Axel System) covers all parts attached to the transfer case, and Section 3 (Ultimate Plus Coverage) covers any breakdown, less the deductible.A warranty is supposed to give you a peace of mind of knowing when things like this happen that you are covered. After reading multiple reviews I found that this company has a track record of finding loop holes in order to deny paying out claims.

  

  Business Response

  Date: 05/09/2025

  We are sorry to hear that you were dissatisfied with the service you received from us.  Our records indicate that ************** called AAGI on April 24, 2025 to start a claim because of a whining noise while driving, and a burning smell. An independent inspector found that the transfer case was fully assembled, however the units input shaft seal was leaking and road grime buildup was present. He also verified that the whining noise and burning smell was coming from the transfer case,consistent with a sealing failure of the transfer case seal that caused internal damage due to low fluid.  Due to the lack of disassembly on the transfer case the extent of the damages could not be determined.
  Under the terms of the AutoGuard Plus contract, failures due to lack of lubrication are specifically excluded from coverage. However, if your technician is authorized to expose the internal parts of the transfer case, we would send the inspector back out to confirm the exact cause of the failure and the extent of the damages. Teardown charges would be included as part of the repair if it is authorized under the terms of the contract. Otherwise, those teardown charges will be your responsibility.

  Exclusion H.20 of the AutoGuard Plus contract provides that breakdowns caused by the failure to maintain proper levels of lubricants are excluded from coverage. In addition, Your Responsibilities Section C.4 states Do not continue to operate Your vehicle if it will cause additional damage.
  
  Under the terms of the AutoGuard Plus Contract and the inspectors findings, AAGI properly denied the claim.

  Customer Answer

  Date: 05/09/2025

   
  Complaint: 23260649
  
  I am rejecting this response because:

  The statement completely ignores the cause of the leakage, burning smell and the whining noise which was that the seal broke. Cause and effect. The seal breaking was the cause of everything that followed and per the warranty, everything attached to and on the inside of the transfer case should have been covered. If the seal never broke, there would not have been a whining noise, a burning smell or anything else. In addition to that, per the auto mechanic, the vast majority of drivers (which I happen to be one) dont know that the transfer case is failing because the only indication of it going out is when you start to hear the whining noise and by that time the damage is already done.  For the record, the burning smell and the whining noise happened simultaneously and besides taking the car back and forth to the dealer, it wasnt driven. Your warranty is contradictory and your business practices are shady and in my opinion violates the MMWA. 
  
  Sincerely,
  
  ***** ******

  

  Business Response

  Date: 05/19/2025

  As we previously indicated, without exposing the internal parts of the transfer case it cannot be determined if the internal damages are due to the seal failure, which is why we require the tear down of the transfer case to properly adjudicate the claim per the terms and conditions of the contract. As specified in the Contract, it is your responsibility to authorize teardown and diagnostic charges so that we can determine the exact cause of failure and the extent of any damage.

  Customer Answer

  Date: 05/21/2025

   
  Complaint: 23260649
  
  I am rejecting this response because: The Repair Shop refused to waste time tearing down the Transfer Case, as it is an unrepairable and non-serviceable unit, which was communicated to your company and presumably to the inspector as well. Regardless of the internal parts' condition, we all know that the leak was caused by a broken seal. However, if the repair shop had proceeded with the teardown, the charges you declined to cover would have escalated from $4,200 to well over $6,000. Who has that kind of money readily available? I am confident that most of your customers do not. The practice of asking consumers to authorize a complete teardown and then refusing to cover the charges is unreasonable. Your company clearly does not prioritize consumer interests, and I hope this review highlights your questionable business practices.
  
  Sincerely,
  
  ***** ******

• Initial Complaint

  Date:04/26/2025

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  My car (2024 *** ***** with ****** miles) was involved in a auto accident on 1/10/2025. I was not at fault. The insurance company of the individual who was at fault declared my vehicle was a total loss and paid my lien holder *** ******* $18,878.00 towards my principal loan balance on 2/24/2025. I filed a Gap claim on 2/26/2025. This claim of course is suppose to cover a gap between the value of the car and a remaining amount of the principal loan with certain exclusions which are listed in the contract. I have met every asked obligation as far as needed paperwork i.e. official accident report, copy of purchasing contract, copy of gap insurance contract, copy of extended warranty contract, copy of declaration of my auto insurance policy, copy of my payment history, photos of my vehicle, payoff amount from the dealership (which I sent several times because of their delay tactics), letter stating my account is in good standing ( I have never been late in payments). Mind you as this is going on I continue to make my payments to *** on time but I do not have an automobile. Every time I call American Auto Guardian at ************ option 3. I am told that my case is under review by their Total ********** I am never allowed to speak to the adjuster handling my claim to determine any specific reason for the holdup. If I could I would resolve it immediately with 24 hours. That is the time duration for me regarding any requests by them. I am a senior citizen who needs a car desperately but being on a fixed income I can not pay my present car loan and purchase another car. The balance of the principal loan is $6067.13.

  

  Business Response

  Date: 05/05/2025

  We are sorry to hear that you are dissatisfied with the service you received from us regarding your recent claim.  It can take some time to receive all the documents required to complete your GAP claim, and we appreciate your assistance in helping us obtain those documents.  As you know, we recently received the final document required, and your claim was forwarded to the underwriter for review. We have received confirmation that your claim has been approved for payment, which will be sent to your lender directly.

• Initial Complaint

  Date:04/16/2025

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I am filing this complaint against American Auto Guardian, LLC (AAGI) for wrongfully denying my *** claim after the total loss of my vehicle on February 12, 2025. Despite written confirmation from my lender, *************************, that my account was current and no amounts were past due at the time of loss, AAGI denied my claim by using a fabricated ideal payment model one that assumes every payment was made exactly on the due date with no tolerance for ***** periods or catch-up payments. This internal model has no basis in the contract and blatantly disregards the actual payoff balance owed: $20,061.53. The insurance settlement was $13,725.04 a deficiency of $6,336.49 that *** coverage is specifically meant to address.I provided AAGI with every document they requested: the insurance settlement summary, official loan payoff letter from ************, full payment history, and even highlighted sections of the *** Waiver contract that directly contradict their justification. Still, they refused to honor the claim. I was passed between at least seven different representatives (***** *******, ***** ******, ****** *., J. Utons, ******** *., ***** ****, and a generic inbox), each offering conflicting or boilerplate replies. At no point was the matter escalated to management, and I never received a clear, consistent explanation aligned with the *********** a working father of four who paid for protection in good faith. This claim has caused extreme stress, financial hardship, and shattered trust in the protections these products claim to offer. Ive filed with the **** and multiple state agencies not for revenge, but because I cannot let this go unanswered. I just want the contract honored and to be treated with fairness, not corporate deflection.

  

  Business Response

  Date: 04/28/2025

  We believe there is a misunderstanding regarding the terms of Mr. ******** *** waiver and the benefit it covers.  A *** waiver is designed to cover the balance of payments that would become due after the date of total loss,less the total market value of the vehicle (insurance payment).  It does not cover unpaid or deferred payments originally due before the date of loss, or any unpaid late charges or other fees charged by the lender over the course of the loan.

  
  Upon signing the retail installment sales contract when he bought his vehicle, Mr. ******* agreed to pay a certain amount by a specific date each month for the life of the contract (in this case, 72 months).  The contract also explains how payments are applied to the loan (first to interest calculated upon the number of days between payments, then the remaining balance toward the principal).

  
  In addition, the payment history we received from his lender showed two loan transactions in 2023 that increased the balance on his account,however these monies are not part of the original retail installment contract and, therefore, these funds and the interest and any related fees charged by the lender are excluded from coverage under the *** waiver. The payment history also shows that no payment was received in the months those transactions were made.  The payment due before the date of loss was also unpaid.

  
  As we have explained to Mr. ******** based upon the terms of the retail installment contract and the *********** the amount paid by the insurance company was greater than the remaining balance had the account been paid timely, and therefore no *** benefit is due.

  Customer Answer

  Date: 04/29/2025

  Complaint: 23214757

  Thank you for the reply.
  AAGI's response continues to misrepresent the actual basis of my *** claim and the contract language governing it. For clarity:
  The *** Waiver Covers Actual Lender Payoff at Time of Loss, Not a *******************************start="782" data-end="785"> *** is designed to cover the deficiency between the insurers settlement and the lender's actual payoff amount at the time of total loss. AAGIs attempt to recalculate a "theoretical" payoff based on perfect payments ignoring real-world loan activity is not supported by the contract or common industry practice.
  Official *******************************************************start="1174" data-end="1177"> My lender provided official written confirmation of the loan status and payoff balance at the time of loss. That balance exceeded the insurance settlement. The *** contract does not authorize AAGI to substitute its own recalculations for the servicers verified payoff.
  Selective Exclusion of Fees or Charges Has No Basis in the **********************start="1537" data-end="1540"> AAGIs selective exclusion of certain lender charges ignores the reality of how loan payoffs are structured and does not reflect any contractual limitation within the *** agreement. Normal loan servicing charges are a regular part of payoff balances, and no carve-out exists within the waiver for their exclusion.
  Request for ***************************start="1901" data-end="1904"> I respectfully ask that AAGI process this claim based on the real lender payoff as verified and not on an internally manufactured alternative balance. The claim should be honored as written, without the insertion of after-the-fact exclusions not found in the waiver.
  I reserve all rights to pursue regulatory and legal remedies if necessary. Thank you to the BBB for your continued assistance in resolving this matter.

  Sincerely, 

  ***** H. *******

  

  Business Response

  Date: 05/05/2025

  AAGI disagrees with Mr. ******** The *** waiver clearly states the terms and conditions under which his benefit was calculated.  This information can be found under Deferred Payment, Delinquent Payment, Net Payoff, and Coverage Limitations.  In addition, loan modifications increased the balance of his loan and these funds and any interest charged for these funds are excluded from coverage, as well as the 2 payments that were not made the months those funds were received and which may have been deferred by the lender to the end of the loan.  Nor did ********** make the payment due prior to the date of loss.  Late fees, and other fees charged by the lender (such as returned check fees) are Mr. ******** responsibility and are excluded from coverage as described in Coverage Limitations above.

  Customer Answer

  Date: 05/06/2025

   
  Complaint: 23214757
  
  I am rejecting this response because:

  Thank you for the opportunity to respond to AAGIs statement.

  
  Let me be crystal clear: My lender, Union Square Credit Union, has confirmed both to me and directly to AAGI that my account was current at the time of loss. My due date was February 11, and the total loss occurred February 12 well within the lenders 5-day grace ******* There were no missed payments, no defaults, and no deferments. To claim otherwise is false.
  

  The official loan payoff on the date of loss, as provided by my lender, was $20,061.53. *********** issued a payout of $13,725.04, leaving a clear GAP of $6,336.49 exactly the kind of situation GAP coverage exists to protect against.
  Instead, AAGI has repeatedly shifted its position, citing vague interpretations and irrelevant exclusions to avoid honoring the claim. Theyve pointed to "modifications" that never occurred, and used past late payments which had long been resolved as justification. Even my lender found their reasoning questionable enough to place a 90-day hold on credit reporting while this is reviewed.
  

  I provided every single document requested: insurance settlement breakdown, loan payoff letter, payment history, and direct lender statements. Yet Im still being denied not because of facts, but because of how those facts are being ignored or misrepresented.
  

  This isnt just about me anymore. Its about how a GAP provider can rewrite the rules mid-claim and leave consumers with no protection. Im asking the BBB to hold AAGI accountable, not for opinions but for the simple black-and-white math and documentation that supports this claim.

  
  Sincerely,
  
  ***** *******

• Initial Complaint

  Date:04/03/2025

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I had to put my truck in the shop. My agent at the dealership called my warranty company to file the claim and they refused to pay for my truck to be fixed because my warranty went out on March 28th 2025. The dealership has documentation showing that when I put my truck in the shop on March ******* my warranty was still active. Aahi is trying to say that the dealership had to call them before they even diagnosed my truck.

  

  Business Response

  Date: 04/22/2025

  We received your correspondence forwarding the complaint filed by ********* ****** on April 13, 2025,regarding coverage for repairs to her 2018 Chevrolet Silverado.  When we contacted Ms. ****** to find out when she took her vehicle to the shop, she also indicated that she had discovered that her service contract had expired by mileage. While we are unable to assist Ms. ****** with her repair, we believe this matter has been resolved.

• Initial Complaint

  Date:03/04/2025

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  My check engine light came on, I took it to my ******* to check why, they told me I need a new engine. I told them that I have a service contract with ***. I had them call and was told to tear down the engine to see cause of the failure, cylinder 1 had a burnt valve on the exhaust. it cost me ******* to have this done. they send a administrator to look and said they would not pay because of carbon buildup. this car has been serviced every 3000 miles by *******, I payed ******* for this contract, and I think they should have been covered part of the repair. 

  

  Business Response

  Date: 03/07/2025

  
  

  

  Business Response

  Date: 03/11/2025

  We received your correspondence forwarding the complaint filed by **** ******** on March 4, 2025 regarding coverage for repairs to his 2017 ******* Tucson.
  
  A review of our files indicates that the repair facility called AAGI on November 26, 2024 to start a claim because the vehicles check engine light was on and the engine was sputtering. We requested the repair facility obtain Mr. ********* authorization to tear down the engine to determine the cause of failure and the extent of any damage.
  
  The repair facility indicated that the cylinder number 1 exhaust valve was burnt, resulting in damage to the corresponding cylinder wall.  AAGI sent an independent ********* to examine the vehicle.  The inspection report stated the failure was consistent with a sealing failure of the number one exhaust valve due to excessive carbon build up. The repair facility disagreed with the findings, indicating that they believed an injector failed,which caused a lean burn detonation, and a second inspection was requested.  The second ********* requested that the valves be removed from the cylinder, and found the seats were slightly pitted, more carbon in the exhaust ports, carbon tracks on the head and exhaust area from a crack in the center of the exhaust manifold. There was also carbon buildup on the valves and ports. The second ********* determined the #1 exhaust valve was burnt due to carbon.
  
  We understand Mr. ********* frustration that his claim was denied, however, under the terms of his AutoGuard Contract, breakdowns caused by carbon or sludge buildup are excluded from coverage.  Based on the contract language and two separate inspection reports, coverage for Mr. ********* repair was denied.
  

• Initial Complaint

  Date:01/15/2025

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  During April of 2024, I went to *** of *********** and was told there was an oil leakage in the car. I told *** that the car was under a warranty, but they rejected that statement. When I got back that day I called American Auto Guardian about this issue, and they stated that the car was under warranty because the mileage was less than ******* miles. After I contacted them 7-8 times, I waited for *** to contact me to fix the car because it was under a warranty, but they never got back to me. I then went to ***, January 9, 2025, to check with them about the oil leak in the car and other problems that have come up with the car such as a noise on exhaust and an excessive fuel usage. *** then kept the car for 2 days and contacted American Auto Guardian, but *** rejected to uphold the warranty. I have an email from a *** representative supporting this. Note: My car extended warranty is ******* miles or 120 months. Which is prioritized because my warranty ends at the end of 2025, while my car has a mileage of ****** miles as of today (1/15/2025).

  

  Business Response

  Date: 01/24/2025

  We received Mr.******* complaint regarding the denial of coverage under the ************************* Contract (AutoGuard Contract) he purchased when he bought his 2016 Kia ******** in December 2015.  He purchased the Ultimate coverage for a period of 120 months or ******* miles. 
  
  The Kia ******** and Consumer Information Manual for Mr. ******* vehicle outlines the Basic ******** (60 months/60,000 miles) and the Power Train coverage for Original Owners (120 months, ******* miles), which automatically begins upon expiration of the 60-month/60,000-mile ************* ******** and continues up to 120 months or ******* miles from the Date of ************** described as the first date the vehicle is delivered to the first retail purchaser (in this case,December 15. 2015, the date Mr. ****** purchased his vehicle.).
  
  Under the terms of Mr. ******* AutoGuard Contract, no benefit is payable for breakdowns covered by a manufacturers or repairers warranty, guarantee or recall, even if benefits are not collectible under that other warranty, guarantee or recall.The claims submitted to AAGI were already covered under the Kia Powertrain ******** for Original Owners, which precludes coverage under the AutoGuard Contract.

  Customer Answer

  Date: 01/31/2025

   
  Complaint: 22817261
  
  I am rejecting this response because:

  I think that relationship is not the way the insurance answer explained with the original insurance of the car.

  On the contrary, they both complete each other.

  I uploaded the American Auto Guardian Policy (Car Warranty), until I receive ***** response
  
  Sincerely,
  
  ****** ******

  

  Business Response

  Date: 02/12/2025

  We are sorry to hear that Mr. ****** has rejected our prior response, and it appears that there is some confusion regarding the AutoGuard Contract he purchased. While Mr. ****** purchased a 120 month/100,000-mile vehicle service contract with ultimate coverage and the optional luxury package, it is not an insurance policy and is completely separate from any factory or manufacturers warranty provided by ***.  As such, neither plan completes or complements the other.
  
  As previously explained, Mr.Al-Alis 2016 *** ******** is covered by ************************* Train Warranty for 120 months/100,000 miles and the Warranty and Consumer Information Manual issued by *** states that seals and gaskets are covered.  Exclusion H.6 of the AutoGuard Contract ********* purchased specifically excludes from coverage Breakdowns covered by a manufacturers or repairers warranty, guarantee or recall, even if benefits are not collectible under that other warranty, guarantee or recall.
  
  If Mr. ****** can provide documentation that indicates he is not the original owner and that his vehicle is not covered by the ******************** Train Warranty, we request that he forward it to us and we will review his claim.

  Customer Answer

  Date: 02/18/2025

   
  Complaint: 22817261
  
  I am rejecting this response because:
  
  Sincerely,
  
  ****** ******

  

  Business Response

  Date: 03/12/2025

  see attachment

• Initial Complaint

  Date:10/15/2024

  Type:Service or Repair Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Denied my warranty claim. When I called them said my warranty does not cover hoses.I have the ** + Ultimate NEW warranty and contract states it does cover it. I can send a copy of my warranty contract for you to review .Dealership says it will cost approximately $1,200 to repair. 

• Initial Complaint

  Date:02/02/2024

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  During ********* deep cold spell a few weeks ago, the battery in my 2016 ******* Sonata Sport went dead on Jan. 15, **** and *** came to my home to jump start the battery. The *** representative told me that the problem with the battery was likely attributable to the car alternator, which clearly on his equipment was functioning only sporadically (causing the battery to drain). He recommended a mechanic check the alternator. I took the vehicle to the ******* dealer where I bought the car (*************** in *************, **) because I have a 10-year, full bumper-to-bumper extended warranty that I signed for and paid the dealer on March 29, 2016. The insurance is with American ************** **** (AAGI) in *****************, **. I had to wait to take my car into ******* until Tuesday Jan. 23; the following day (Wednesday Jan. 24), ********* service department called me to explain my alternator indeed was NOT functioning properly, plus the battery cables connecting the alternator to the battery were badly corroded and needed replacement. The battery needs replacing, too. AAGI's "independent inspector" finally visited ******* one week later (Tuesday Jan. 30) and heard the dealer's service evaluation. The car was turned on and the inspector said he did not see the alternator acting sporadically (it was charging on and off) so there was nothing to repair. The dealer said it had a video of the alternator malfunctioning. I don't know if it showed the video to the inspector. The inspector left.The dealer can't do the work because AAGI won't pay for it and I am left with only one option: take back the car, drive it as usual and wait for the battery to drain again, have the car break down, need a jump to get it to the dealer or tow it back to the dealer. I find the loss of use of the car for over one week and the insurance company's lack of care for a car they are legally required to keep working condition intolerable and unacceptable.

  

  Business Response

  Date: 02/07/2024

  According to our records, American Auto Guardian, LLC (AAGI) was contacted by a repair facility on January 24, **** to start claim because of a charging system issue on *************** 2016 ******* Sonata. The technician discovered the negative battery cable had an excessive voltage drop and concluded that the alternator failed.
  
  An inspector, employed by an independent inspection company with no affiliation to AAGI, was sent to confirm the cause of the failures and the extent of any damage. The inspector reported that the technician confirmed at the time of the inspection that he had already replaced the vehicles negative battery cable and terminal and had not seen the issue again. The inspector confirmed that the engine started and ran as designed. The inspection was completed on January 29, ****.
  
  Mr. ******** vehicle service ******** states in several places that prior authorization for any repairs is required, and that repairs that have not received prior approval will be denied. In addition, a Breakdown is defined as a covered part that fails to perform as intended due to an internal mechanical or electrical defect, or fails to perform within manufacturers specifications due to wear and tear At this time, based on the independent inspectors report, the vehicles alternator operates properly.
  
  Based on the language of Mr.******** ******** and the inspection report, AAGI properly denied coverage for an alternator repair and the negative battery cable / terminal replacement. If the repair facility can demonstrate a failure in the operation of the alternator, AAGI will be happy to send out the inspector again to verify the failure, and if verified, perform any covered repairs needed.

• Initial Complaint

  Date:02/01/2024

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Purchased a 2018 F-150 in March of '23. I also purchased the Premier warranty package through Wheelz. In January of '24 there was a catastrophic failure in the front differential of the truck causing repairs needed in the neighborhood of $6k. Warranty claim has been denied due to improper maintenance on my truck. They claim that my front differential was run without fluid which caused the failure. I have had this truck parked on a brand new driveway since I purchased it over ten months ago. There is not a spec of fluid on that driveway. Service manager at repair shop also let me know that I would know as soon as the differential was low on fluid due to grinding, loud whine, rough driving, etc. My truck showed no symptoms of any of these things until the day my 4wd system locked up. This was not a failure to maintain my vehicle. I believe there was a failure in the differential that caused the excessive heat which led to losing all of the differential fluid. I purchased this truck with around 83k miles on it. I have not passed 100k miles to this point. There is no way I should need to service my differential every *****k miles. ******************* interval is *****k miles. I purchased the truck with the understanding that all necessary service was up to date from the point of purchase. My warranty claim has been improperly denied due to a loophole/opinion of their inspector. I seek to have my truck repaired as I rightfully deserve and paid for.

  

  Business Response

  Date: 02/07/2024

  According to our records, ************* repair shop called American Auto Guardian, LLC (AAGI) on January 18, ****, to start a claim on his 2018 **** F-150 because of a four-wheel-drive issue. The repair shop technician discovered the right front wheel hub and front differential assembly had failed.
  
  An independent inspector was sent to confirm the cause of the failures and the extent of any damage.The inspector reported that the trucks front differential pinion seal had been leaking long term, and continued operation caused all the fluid to leak out of the front differential. As a result, the inspector found that the front pinion bearing was falling apart and was welded on the pinion shaft. He also found that the differential case had heavy metal debris buildup, the ring gear has several chipped teeth, and the ring gear had been hitting on the case, deeply scoring it. The inspector also verified a tear in the driveshaft boot, and failure to the right front wheel hub and left outer tie rod end.
  
  ****** vehicle service contract provides in Exclusion **18 that breakdowns caused by the failure to maintain proper levels of lubricant are not covered under the contract.Additionally, the contract specifies that the contract holder should not continue to operate their vehicle if it will cause additional damage. Finally, the contract states that only the parts specifically listed are covered by the Wheelz Contract.The tie rod end and driveshaft boot are not listed as covered components.
  
  Based on the language of the ********************** Contract and the inspection report, AAGI authorized the front pinion seal and right front wheel hub repair. AAGI correctly denied coverage to the tie rod end, driveshaft boot and the failures to the front differential due to lack of lubrication and continued operation. Despite ****** claim, AAGI never stated that any portion of this claim was being denied due to lack of routine maintenance. It was because the seal was not repaired in a timely manner and as a result the proper amount of lubrication was not kept in the differential. We regret that ****** has experienced this breakdown. While we were able to cover a portion of his claim, if Mr. ** can provide us with evidence that the refutes the independent inspectors opinion, we would welcome the opportunity to reevaluate our conclusion. 

  Customer Answer

  Date: 02/07/2024

   
  Complaint: 21230930
  
  I am rejecting this response because:

  This truck has been parked on a brand new concrete pad since purchase. There has never been a single drip of fluid shown anywhere on my driveway. There also has not been a single symptom of low fluid experienced until the failure. No whining, no grinding, no hum. I have owned this truck for nearly a year without any symptoms of low differential fluid shown at all. As such, can you prove that a failure in the differential did not cause all of the fluid to escape the system on the day of the problem? The vehicle was immediately brought to the repair shop as soon as the issue arose. There was no long term driving after any symptoms were shown. 
  
  Sincerely,
  
  *************************

  

  Business Response

  Date: 02/16/2024

  *************** response indicates that he believes the differential failed in a catastrophic manner in one incident. The inspection report states that the lubrication leaked out of the differential over time because of a failed seal.The inspection report also states that the damage to the differential occurred over time as a result of the low level of the lubrication, rather than as a result of a single event of failure. Out of consideration for *************** concerns, we obtained a second inspection report from a different inspection company. It also indicates that the failure was due to operation of the vehicle with low lubrication in the differential because of a failed seal. Because this is an excluded condition in the contract as confirmed in two inspection reports,we conclude that the differential repair claim was properly denied.  The repair facility also found that the pinion seal, left and right front hub bearings & transfer case had failed. These repairs have been authorized. We hope this resolves this matter for Mr. ********

• Initial Complaint

  Date:01/18/2024

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  The Dealership sold us a lemon with a dangerous exhaust leak and gave us the run around to fix it despite it being under warranty. We ended up having to sell the truck at a loss and have been trying to get in contact to recoup our "warranty" ever since. It has been 8 months (May 2023) now and we still have not been able to even talk with someone in the correct department. Our calls are always transferred, put on hold for up to an hour or mysteriously dropped AKA hung-up on. This has been very frustrating and feels like we are being taken advantage of by a large company. Please help our family resolve this issue.

  

  Business Response

  Date: 02/02/2024

  We are sorry to hear about Mr.******** ********** regarding the cancellation of his vehicle service ******** and would like to help resolve the problem. Our records indicate that AAGI provided a cancel quote to the dealership on March 21, 2023; however, we did not receive a written request to cancel Mr.******** ******** as is required by the ********, nor has ****************** contacted AAGI about cancellation procedures or refund status.
  
  In checking with the dealership,we have been advised that ****************** was unsure of the mileage so the dealership provided estimated mileage to AAGI at the time of the cancellation quote request.The dealer further advised ****************** that he would need to provide accurate mileage in order for the correct refund amount to be determined and come to the dealership to sign the cancellation request. According to the dealer, ****************** did not return to sign the cancellation request and they have no record of any further calls.    
  
  As a courtesy to ******************, we will authorize the cancellation effective the date of his cancellation request for the refund amount quoted to him and, as specified in his ********, the refund will be sent by the dealer to his lienholder unless ****************** provides written confirmation that his account has been paid in full.  We believe this will fully resolve the payment of the refund due to *******************