Extended Warranty Education - Glossary of Warranty Terms
Read definitions for the terms used in most vehicle service contracts...
Select any of the following or scroll down to see all warranty definitions.
Administrator: The company that is contractually obligated to perform under the extended warranty contract; this company will authorize and pay the dealer or repair facility for repair work to your vehicle. The administrator works with the repair facility to make sure your claim is handled properly.
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Basic Warranty: Specific terms established by each manufacturer to repair vehicles through a specified mileage or time period. Factory installed and many dealer installed parts are covered under this warranty.
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Bumper-to-Bumper Warranty: Exclusionary coverage that will only list the parts that are not covered. Bumper-to-bumper automobile warranties are the most comprehensive coverage available.
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Deductible: The amount that you must pay the repair facility for work when vehicle is being repaired.
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Drive Train: Components that transmit the flow of power from the engine to the wheels, such as the clutch, transmission, drive shaft, U-joints and differential
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Extended Warranty: Contract which protects the car owner against mechanical failures and breakdowns. Often referred to as a Vehicle Service Contract, will pay for covered repairs after the manufacturer's warranty has expired
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Inclusionary Coverage: Warranty coverage plan that lists the parts that are covered by the extended warranty. If the component or part is not listed, it is not covered.
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Maintenance Guidelines: Normal or routine maintenance that is recommended by the manufacturer of your vehicle to keep the vehicle in good condition, such as oil changes, tune-ups, maintaining fluid levels, tire rotations, wheel alignments, belts, hoses and others as described in your owner's manual. All extended warranty contracts require proper maintenance of your vehicle
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Manufacturers Warranty: Standard warranty that every new vehicle is sold with. All factory-installed parts are covered against defects.
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Power Train Warranty: Limited manufacturer warranty that covers certain parts of your vehicle's engine, transmission and drive train assembly. Should these components fail while covered under the power train warranty, the manufacturer is responsible for the repair.
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Repair Facility: Any licensed repair facility located in the United States. Can be a dealership, local mechanic, or national repair facilities.
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Rental Benefit: Amount you will be reimbursed for actual expenses incurred for substitute transportation while your vehicle is being repaired.
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Roadside Assistance: 24 Hour assistance when your vehicle breaks down or when there is a vehicle emergency (towing, battery assistance, flat tire assistance, emergency lock out, or fuel, oil, fluid and water delivery).
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Transferable Warranty: A vehicle having an extended warranty can have the warranty transferred to the new owner of the vehicle if sold privately for a fair sum. An extended warranty can not be transferred to a dealer. An important selling point for prospective buyers and an added value when you decide to sell your car.
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Travel Interruption Benefit: When your vehicle is inoperable causing a delay in travel and you are more than 100 miles from your home, this is the amount you will be reimbursed per day for restaurants and lodging.
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Wrap Warranties: Wrap warranties are special bumper-to-bumper warranties for particular vehicles with power train warranties that run longer than the vehicle's standard warranty
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