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In Feb of this year I purchased a used 2008 BMW 550i. The dealership offered an extended warranty through Interstate National Dealer Services (INDS, Inc.), I opted for the Copper Coverage Plan at $3000 up front price tag since it had fairly good coverage of most parts that fail on BMW's.

It was a 3 year/42000 mile warranty. Well after feeling all happy and secure that I had this fairly comprehensive coverage for my bimmer, I began to notice this month (5/17) that my coolant level was getting low in the overflow tank. After topping off the overflow tank, the same thing occured again two weeks later. On 5/18/17 I took it in to a local European repair shop.

It was discovered that a small coolant leak was happening at the top of the engine block. Diagnosis: the engine block cap (BMW's name for a valley pan) seal was leaking coolant. Price to fix: $1100.00. My service contract with INDS, Inc.

specifically read: Seal&Gasket Coverage; Provides for repair or replacement of leaking seals&gaskets, if needed, on any covered part. Since my Copper Coverage plan covered the cylinder block of the engine, I was quite relieved that I had come out of pocket for the $3000 plan. Well this is where the story starts to get shady. The repair shop also looked over my service contract and agreed this repair should be covered and made the telephone call to INDS, Inc claims.

DENIED! The repair shop was told since the part and seal (valley pan) was not listed as a part of the engine block in the contract, it wasn't covered. The repair tech tried to explain to the claims department that this was a seal/gasket component of the engine block, but they still denied the claim. Since then I have spoken to three different representatives of INDS, Inc.

All three times all they say is that the valley pan (top engine block cap/seal) is not stated in contract so it’s not covered, even though if you look at any BMW parts list or talk to BMW directly, they confirm this is a seal/gasket component of the engine block. The fight to continue... Beware of this company! They do not honor what clearly stated in the service contract they have authored.

If they say repair or replace gaskets/seals to a part, they should honor it. Such as in my case, the leaking seal between the engine block and engine cap (valley pan) is a covered part in the rules they have written in their own contract.

Review about: Interstate National Dealer Services Auto Claim.

Reason of review: Warranty issue.

Monetary Loss: $1100.

Preferred solution: Deliver product or service ordered.

I didn't like: Ability to honor contract and warranty.

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Interstate National Dealer Services Verified Representative

Thank you for your feedback. Interstate has been an industry leader for 37 years, and constantly strives to provide a high quality customer experience.

We adjudicate claims based on the terms and conditions of the coverage you purchased.

Since every claim is different, please give us the opportunity to discuss your concerns further. Kindly visit http://www.interstatenational.com/pissedconsumer/ and provide us with your contact information, and our Member Services manager will call you directly.

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