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Auto Warranty Glossary
Navigating the world of auto warranties can be challenging, especially with industry-specific terms. This glossary is your go-to resource for understanding the essential terms used in vehicle protection plans, claims, and contracts. We have provided a free informational video discussing common terminologies with extended vehicle warranties or vehicle service contracts.
A
Administrator:
A third party responsible for managing your warranty plan, including processing claims and coordinating repairs.
Aftermarket Warranty:
A vehicle protection plan purchased separately from the manufacturer, often covering a wider range of repairs.
B
Bumper-to-Bumper:
A type of warranty covering most vehicle parts between the front and rear bumpers, excluding wear-and-tear items like tires or brake pads.
Breakdown:
A mechanical or electrical failure that prevents a vehicle from operating as intended.
C
Claim:
A formal request submitted to the warranty provider to cover repair costs under the terms of your contract.
Covered Repairs:
A mechanical or electrical failure that prevents a vehicle from operating as intended.
D
Deductible:
The out-of-pocket cost you must pay before the warranty provider covers the remaining repair expenses.
Drivetrain Warranty:
Coverage specifically for components such as the engine, transmission, and driveshaft.
E
Exclusions:
Specific items or circumstances not covered by your warranty plan, detailed in your contract.
Extended Warranty:
A protection plan that extends coverage beyond the manufacturer’s warranty.
F
Factory Warranty:
The original warranty provided by the vehicle manufacturer, typically included with the purchase of a new car.
Fair Market Value:
The amount your car is worth on the open market, which may affect coverage in total loss scenarios.
G
Gap Insurance:
Insurance that covers the difference between your car's actual cash value and the remaining balance on your loan or lease.
H
High-Mileage Plan:
A warranty plan designed for vehicles with a high number of miles, often with tailored coverage options.
I
Inspection:
An evaluation performed by a licensed mechanic to assess the condition of your vehicle, often required before warranty activation.
J
Jump-Start Assistance:
A roadside assistance service included in some warranty plans to help restart your car when the battery is dead.
K
Key Fob Coverage:
Coverage for the replacement or repair of a lost or damaged key fob, available in some plans.
L
Lemon Law:
State laws that protect consumers if a new car has persistent issues that the manufacturer cannot resolve.
M
Manufacturer’s Warranty:
The original coverage provided by the automaker, usually lasting 3–5 years or a specific mileage limit.
Maintenance Plan:
A service plan covering routine maintenance tasks like oil changes and tire rotations (typically not included in auto warranties).
N
Non-Transferable Warranty:
A warranty that cannot be passed on to a new owner if the vehicle is sold.
O
Optional Coverage:
Add-ons that extend your warranty coverage to include items like electronics, GPS, or high-tech systems.
P
Powertrain Warranty:
Coverage for essential vehicle components such as the engine, transmission, and drivetrain.
Pre-Existing Conditions:
Issues with your vehicle that existed before your warranty began, typically excluded from coverage.
Q
Quote:
An estimated cost for a warranty plan based on your vehicle’s make, model, year, and mileage.
R
Roadside Assistance:
A service included in some plans that provides help with towing, lockouts, fuel delivery, and more.
Repair Authorization:
Approval required from the warranty provider before repairs can proceed.
S
Service Contract:
A legally binding agreement detailing the terms of your warranty plan, including covered items and exclusions.
Seals and Gaskets:
Components often covered under specific warranty plans, particularly for the engine or transmission.
T
Transferable Warranty:
A warranty that can be transferred to a new owner if you sell your vehicle.
Towing Coverage:
Coverage for towing expenses if your vehicle breaks down, included in some warranty plans.
U
Unlimited Mileage Plan:
A plan that provides coverage without mileage restrictions, ideal for high-mileage drivers.
V
Vehicle History Report:
A report detailing your vehicle’s history, often required to verify warranty eligibility.
VIN (Vehicle Identification Number):
A unique code used to identify your car, often required to process warranty claims. (You can check your warranty status by VIN for free at www.warrantycheckbyvin.com)
W
Wear and Tear:
Normal deterioration of vehicle components not typically covered under warranty plans.
Warranty Activation:
The process of initiating your warranty coverage, often requiring documentation and/or an inspection.
Y
Yearly Limit:
The maximum mileage or term allowed within a 12-month period under your warranty plan.
Z
Zero Deductible Plan:
A warranty plan where you pay no out-of-pocket costs for covered repairs.