What is Bumper-to-Bumper Coverage?

Bumper-to-Bumper Coverage refers to a type of warranty that covers most parts between the front and rear bumpers, excluding wear-and-tear items like tires or brake pads.

What is a Deductible?

A deductible is the amount you must pay out-of-pocket before the warranty provider covers the remaining repair costs.

What are Exclusions in a warranty plan?

Exclusions refer to specific items or circumstances that are not covered under your warranty plan. These are detailed in your service contract.

What is an Extended Warranty?

An extended warranty is a protection plan that extends coverage beyond the manufacturer’s original warranty, often covering additional repairs and components.

Auto Warranty Glossary

Q: What does 'Administrator' mean in an auto warranty?

An administrator is a third party responsible for managing your warranty plan, including processing claims and coordinating repairs.

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.

Search the terminologies alphabetically by clicking the letters below

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | Y | Z

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.