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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.

 

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.

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