Glossary

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A

Administrator

When referring to extended vehicle warranties and service contracts, this is the company or people that will be responsible for the day-to-day operations necessary to fulfill the vehicle service plan or contract agreement. This company processes your claims, works with your repair facility, and pays for your repair work.

ASE Certified

Auto mechanic certification program developed by the National Institute for Automotive Service Excellence. To attain certification, mechanics must pass at least one exam and provide proof of at least two years of relevant work experience.

B

Basic Warranty

Also called the manufacturer warranty since it often comes with the purchase of a new vehicle, this warranty generally covers everything but wear (tires, brake pads) items and maintenance (oil, spark plugs, filters) under normal use and maintenance. These warranties are typically limited to a certain period of time (3 to 5 years) and/or mileage (36,000 to 60,000 miles)

Bumper to Bumper

Comprehensive coverage that protects your vehicle from nearly all mechanical, electrical, and computer-related items between the front and rear bumper.

C

Certified Car

Sometimes called certified pre-owned vehicles, these cars are used vehicles that have been inspected and, in most cases, reconditioned by the dealer or manufacturer for re-sale.

Consumable Items

Items that are not typically covered by a vehicle warranty due to the intended nature of these items to be frequently replaced. These include, but are not limited to, brake pads, oil filters, windshield wiper blades, power steering fluid, transmission fluid, tires, air filters, and the like.

Corrosion Warranty

Corrosion warranties are meant to protect vehicle owners from the cost of repairs associated with corrosion of the vehicle’s exterior.

D

Deductible

The portion of any warranty plan, service contract, or insurance plan that the member must pay out-of-pocket as part of any repair. We offer a variety of deductible options to fit your needs. The deductible is paid per visit, even if there are multiple repairs.

Drive Train

This is the mechanical system that transmits power from one place to another. The drive train (also called the powertrain) includes the running belt, drive belt, rollers, and motor. A car’s transmission is part of the drive train because it transfers engine power to the wheels.

E

Emissions Warranty

8 year/80,000 mile warranty coverage for the catalytic converter, electronic emissions control unit and onboard diagnostic device.

Exclusionary Coverage

An extended auto warranty plan that offers comprehensive, bumper-to-bumper style coverage in which it is shorter to list the items not covered (excluded) by the warranty than it would be to list the thousands of items that are. These are the preferred standard in extended auto warranty plans and are far superior to named component coverage.

Extended Warranty

Any warranty or service contract that is in effect past the expiration date of the original manufacturer. Extended warranties are offered by the original manufacturer. Vehicle protection plans are offered by third party marketers.

I

In-Service Date

This is the date when a vehicle is placed into operating service. Typically this date is defined by the date the vehicle was first purchased and driven off the lot or used as a demo.

L

Lemon Law

In order to protect consumers from vehicles that are shown to be consistently defective or more-prone-than-usual to breakdown, several States have enacted “Lemon Laws” that allow the consumer to return the vehicle to the manufacturer and receive a full or partial refund or a similar non-defective vehicle as long as the “lemon” vehicle meets certain requirements.

M

Maintenance Guidelines

These are the specifications set forth by each manufacturer on the proper care and maintenance for a particular vehicle. These include recommendations on fuel grade, oil weight, tire pressure, and dates or mileage for regular tune ups or engine maintenance. These guidelines can vary widely from vehicle to vehicle and are the responsibility of the vehicle owner to know/abide by.

Make

The manufacturer or division of the manufacturer that built your vehicle.

Manufacturer

The company that made your vehicle.

Model

The specific type of vehicle, often defined by a particular car body style, made by the manufacturer.

N

Named Component Coverage (Also called Stated Component Coverage)

A lower level of extended vehicle protection plans that pays for claims to certain named components only. The list of covered components often does not cover all essential systems and neglects many of the items routinely covered by exclusionary coverage.

P

Powertrain Warranty

This type of warranty protects vehicle owners from the expense associated with a repair or replacement of the main mechanical systems that power the vehicle (see Drive Train). Manufacturers often offer a powertrain warranty in addition to a manufacturer warranty. In some cases, the powertrain warranty is valid for a greater period or time or mileage than the manufacturer warranty.

R

Rebuilt Title

The type of title granted to a vehicle that has been restored, rebuilt, or reconditioned from a vehicle that was once considered a salvage vehicle or that was inoperable. Despite their appearance, these vehicles are not new vehicles, certified vehicles, or even standard used vehicles. Warranty Direct does not provide coverage for these vehicles.

Recall

When a part or component of a vehicle is found to be widely defective or dangerous, the manufacturer will often issue a statement of recall. In these situations, vehicle owners are entitled to free repair or replacement of the named part or component if their vehicles fall within the spectrum of affected vehicles.

Rental Benefit

The amount designated in your contract that you will be reimbursed for rental car expenses while your vehicle is being repaired.

Repair Facility

Any ASE-certified mechanic, body shop, auto dealer service center, national chain service center, or other auto maintenance facility.

Roadside Assistance

An additional benefit offered as part of some extended vehicle warranty plans that gives covered members access to towing, emergency gas, flat-tire service, lost keys service, and other automobile services of an urgent nature that can be administered from the side of the road.

S

Salvage Title

This is the type of title granted to a vehicle that has been damaged to such extent that it has lost 75% or more of its previous market value. At this time we do not provide coverage for these vehicles.

T

Technical Service Bulletin (TSB)

This is a document distributed by the automaker to its authorized dealers, informing technicians of known problems and how to fix them — for example, if a vehicle comes into the shop making a specific noise, the TSB tells the technician what is most likely causing the problem, which saves diagnostic time. The repair may be covered under the vehicle’s warranty.

Transferability

The ability of a policyholder or extended vehicle warranty member to transfer coverage from themselves to another person. In the case of vehicle service contracts, the coverage must remain on the same vehicle, but the named member can be changed should the vehicle be sold to a new owner.

Travel Interruption Benefit

An allowance provided as part of some extended car warranty plans that is meant to pay for or reimburse costs associated with a trip that cannot be completed due to a covered cause. This typically includes hotel fees, airline fees, or lost deposits. Travel Interruption Benefits are often limited to a certain dollar amount or may be available only for specific types of claims. For full travel interruption reimbursement, it is wise to consider travel insurance.

V

Vehicle Identification Number (VIN)

The unique 17-digit number assigned to your vehicle, typically found in the driver’s-side dashboard, and also documented in your car title or insurance card. VINs are recorded in accidents, insurance records, and when work is done on a vehicle by a body shop, dealership or mechanic.

Vehicle Service Contract

he protection program you purchase to cover vehicle repair after a manufacturer’s warranty has expired, or to fill any gaps in your current warranty’s coverage.

W

Warranty

The standard factory coverage (typically 3 years or 36,000 miles) that comes with every new vehicle and protects against mechanical defects. Different from a vehicle service contract, which offers protection beyond your vehicle’s standard factory warranty. These warranties are typically only valid at dealer or manufacturer service centers.

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