Administrator

The company that handles your extended warranty repair claims. They work directly with the repair facility to process payment.

ASE Certified

Mechanic that is certified by the National Institute for Automotive Service Excellence. Certification requires passing a written exam and proof of two or more years of mechanic experience.

Bumper to Bumper

A layperson’s term for a service contract that covers almost any vehicle breakdown problem (mechanical, electrical, computer, etc.) not due to normal wear and tear.

Deductible

The amount determined by your contract that you must pay to the repair facility when repairs are completed under a service contract claim. Depending on the terms, deductibles can range anywhere from $0 to $100.

Gray Market Vehicle

Vehicles manufactured outside of the U.S. and that also fail to meet U.S. manufacturing standards. These vehicles may have a factory warranty but usually do not qualify for an extended service contract.

Inclusionary Coverage

Refers to the auto parts that are covered by a service contract. The parts on the list are included as being covered.

In-service Date

The date a vehicle was sold to the first owner. It can also refer to the date that a car was first used as rental or demo vehicle. This is also the date that the warranty begins.

Obligor

A third party insurance provider that insures the Administrator. This guarantees the Administrator has sufficient financial funding to pay repair claims.

Lemon Law

State laws that let consumers get a refund or replacement of a purchased vehicle with a major mechanical defect. The defect is typically covered by warranty, but it cannot be repaired.

Maintenance Guidelines

Car manufacturer recommendations for routine maintenance, such as general service, oil changes, spark plug replacement, tire rotations, belt changes, etc. The guidelines are listed in the car owners manual. Most warranties and service contracts require that you follow your vehicle’s maintenance guidelines.

MAKE

A car manufacturer or division of the manufacturer.

Manufacturer

The company brand that built your vehicle.

Model

The specific type of vehicle, defined by specifications which can include body style, engine type, etc.

Rebuilt Title

This is placed upon a rebuilt car that was a salvage vehicle but has now been repaired and restored to operation. In most states, a vehicle inspection is required to receive the rebuilt title.

Rental Benefit

The amount designated by your service contract to be used towards a rental car while your repairs are completed.

Roadside Assistance

A benefit that provides 24/7 assistance in the event of a breakdown. May include towing, emergency fuel, tire change, lock out assistance and more.

Salvage Title

A vehicle title notation that designates a vehicle as being damaged enough to be considered a total loss. Before a salvage vehicle can be driven again, it must be repaired and receive a rebuilt title.

Transferability

The ability to transfer extended service contracts upon sale. The vehicle retains the service contract now under new ownership.

Trip Interruption Benefit

A service contract benefit that reimburses you for food and lodging while car repairs are being made. Typically, you must be at least 100 miles from home for the benefit to apply.

Vehicle Identification Number (VIN)

A unique 17-digit number assigned to your car. This number has a coded vehicle description which includes the manufacturer, production year, place of production and vehicle characteristics. The VIN may be found in the driver’s-side dashboard, in the car title or insurance card.

Vehicle Service Contract

Also known as extended auto warranty or extended vehicle protection plan. This contract covers the cost of repairs similar to a factory warranty, and it picks up where the factory warranty ends.

Warranty

The standard manufacturer coverage (typically 3 years or 36,000 miles) included with the purchase of a new vehicle. These plans pay for the cost of any mechanical defect repair not due to accident or normal use.

Wear and Tear

Parts not typically covered under extended warranties such as tires, wiper blades, batteries and lights.