2008 C30 Broken Temperature Sensor leads to ruined engine

[WilkinsC30]

Hello all, I'm new to owning my 2008 Volvo C30, but so far it's been a tumultuous relationship. Luckily I purchased a 3yr warranty, which has paid for itself tenfold. However, last week while driving on the highway, my car began to flash EVERY light on the dash. I cut across three lanes of traffic on an overpass, and pulled over immediately. A plum of smoke bellowed out as soon as I opened the hood. I waited for almost 2 hours for the tow truck to come and a not so safe part of the highway...
Dealership gets back to me the next day and says that the latch holding the temperature sensor was worn and had actually fallen off, causing the car to overheat. This is covered by my three year warranty, HOWEVER, the fact that the engine is now ruined is somehow my fault. Although I had pulled over as soon as my car decided to alert me, the warranty inspector is trying to say that I drove it too long... A) I pulled over as soon as the lights began to flash and alert me B) my car had just been taken in 3 weeks prior to replace the oil pan and they had not noticed any other problems with the car, however they are claiming that somehow within that time span I was able to cause enough damage to allow the temperature sensor to become warn??

Has anyone else had any problems with their engine lights not coming on in time or had problems with the temperature sensor??

Thank you!

[jimmy57]

The engine coolant temp sensor inserts into a plastic thermostat housing and is held by a clip.
When it pops out the coolant is lost quickly. Tell him there is no low coolant level sensor for warning and when coolant is lost rapidly the damage is done before you can know there is a problem. Getting vehicle to roadside without risk of personal injury takes time. You could not have caused this to fail. The clip that holds in the temp sensor is not a maintenance item nor is it accessible for you to have touched it and caused it to be loose.
He is acting in bad faith per the terms of the insurance coverage contract.

[WilkinsC30]

Jimmy, thank you so much. You've been really helpful! I will call my dealership back today