Extended Warranty Terms

Administrator: The administrator is the company that pays your repair claims. Therefore, their financial strength is more important than the company selling you the warranty. You generally save significantly by buying direct from the warranty company. It makes sense since you’ve eliminated the middlemen and all their commissions. You’re also more likely to get a thorough and candid description of the coverage from a representative who will be involved with you and your claims for the life of your warranty. When you purchase from Auto Service Protection, you’re doing just that.

Basic Comprehensive Warranty: The specific terms established by each manufacturer to repair vehicles through a specified mileage and/or time period. All factory installed and many dealer installed parts are covered under this warranty.

Bumper-to-Bumper Warranty: This term can be misleading. In reality, there is no such thing as a “bumper-to-bumper” warranty. The name itself infers that everything is covered. There is no such animal. However, the term has been around so long that it has become acceptable in many quarters and generally means that it is the most comprehensive warranty a company offers. It excludes the smallest number of exclusions; but you can bet there will be exclusions.

Certified Car: Many used cars (many from expired leases) that are sold are labeled “certified” by the manufacturer. This means they have undergone a quality inspection process prior to sale. Often, a limited powertrain warranty is attached to them. They do not include extended or basic, comprehensive warranties, like the original factory plan. Lastly, there is no industry standard for certification. You can add an extended warranty to these vehicles.

Commercial Vehicle: Vehicles used for commercial purposes including, but not limited to, rent, taxi, delivery, route work, farming or agricultural, service or repair. These vehicles are generally excluded from extended warranty contracts.

Consumable Items: This term refers to parts such as tires, batteries, clutch plates and wiper blades that are generally not covered under any warranty.

Corrosion Warranty: This option covers rust through perforation on sheet metal. This coverage is usually offered as an extra option to the original factory warranty on new vehicles. Extended warranties do not cover corrosion.

Deductible: This is the amount of the final bill that you must pay the repair facility for repair work completed. Most companies offer several choices, including a zero deductible option. It’s also important to know if your deductible will be collected per repair or per visit. A per visit plan is preferable for obvious reasons. Per repair deductibles can add up quickly and put a real dent in your wallet if you have more than one problem fixed during a visit.

Extended Warranty: This term refers to a policy which protects your car, truck or van against mechanical failures and breakdowns. Extended warranties are often referred to as Vehicle Service Contracts. The warranty will pay for covered repairs for a certain term (time and/or miles) after the manufacturer's warranty has expired.

Gray Market Vehicle: A vehicle not manufactured for sale in the U.S. They often do not meet U.S. standards and carry no manufacturer warranty. These vehicles are typically ineligible for extended warranties.

In-Service Date: This date identifies the time when the vehicle was first placed in use. It can refer to the date of purchase by the original owner or the date it was released for rental, demonstration or other purposes. Beware of warranties that use the in-service date to determine terms.

Lemon Law: The general definition of a Lemon Law vehicle is: A vehicle with (a) major, repeated problem(s) that has been repurchased by, or had its purchase price renegotiated with, the manufacturer. States then identify these as Lemon Law or Buyback vehicles. These vehicles are not eligible for extended warranty coverage.

Maintenance Guidelines: This refers to the routine maintenance that is recommended by the manufacturer of your vehicle to keep the vehicle in the best possible running condition. Included are such things as oil changes, tune-ups, checking fluid levels, tire rotations, wheel alignments, belts, hoses and others. Again, check your vehicle’s owner's manual for specifics.

Manufacturer's Warranty: This is the standard warranty that every new vehicle sold comes with. All factory-installed parts are covered against defects. Typical manufacturer warranties are 3 years or 36,000 miles or 4 years or 50,000 miles. Check your manufacturer's warranty manual for specific information.

Power Train Warranty: A very limited warranty from the manufacturer that covers certain parts of your vehicle's engine, transmission and drive train assembly. If any of these components fail while the vehicle is covered under the original factory powertrain warranty, the manufacturer is responsible for the repair. These plans are also available from extended warranty companies. They are generally much less expensive than total car coverage since they only cover about 25% of the vehicle. They also often include more time and more mileage than is available for total car coverage.

Repair Facility: An authorized licensed repair facility located in the United States or Canada. This may include your dealership, local mechanic or national repair facilities like Sears or Pep Boys.
Rental Benefit: The amount you will be reimbursed for expenses incurred for substitute transportation while your vehicle is being repaired. Most companies list a cap on the number of days and/or dollars a day that you will be reimbursed.

Roadside Assistance: A program that provides you with a toll-free telephone number to call 24 hours a day 365 days a year. Services typically include emergency assistance like: towing, help with a dead battery or flat tire, lock out, or fuel, oil, fluid and water delivery. Having these services pre-paid when they arrive at your location is superior that you paying and waiting for a reimbursement.

Salvage Title: Vehicles with a “salvage title” were typically involved in a flood or severe accident and an insurance company has declared the vehicle a total loss. In some areas, these vehicles are referred to as “rebuilt”. These vehicles are not eligible for extended warranties

Transferability: This is a good feature because it means that you can transfer the balance of the warranty contract if you decide to sell the vehicle prior to the expiration of the warranty – if you sell it privately. This typically requires a modest fee and please note that an extended warranty cannot be transferred to a dealer.

Vehicle Identification Number (VIN): Your VIN is located in several places. It is a 17-digit code that identifies your particular vehicle. You will most likely find it: on the driver's side dashboard of your car, on your insurance card, on the title to your vehicle, on the vehicle's registration card, or on a sticker inside the driver's side door.

Wear-and-tear: Wear and tear coverage, when included, provides coverage for the repair or replacement of any covered part that does not meet the manufacturer’s specs, whether it’s broken or not. This refers to worn parts, not just parts that break. Check any contract for that company’s specific definition of wear and tear before you buy.

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