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Extended Auto Warranty Glossary of Industry Terms

• AAA Extended Auto Warranty
• A-Rated
• Administrator
• A.M. Best & Co.
• Authorization
• Bumper to Bumper
• Cancellation
• Corrosion Warranty
• CUNA Vehicle Extended Warranties
• Deductible
• Diagnostics
• Exclusionary Policy
• In-Service-Date
• Insurer
• New Vehicle
• Odometer Miles
• Plan Expiration
• Plan Term
• Power Train Coverage
• Rental Benefit
• Roadside Assistance
• Stated Component Coverage
• Transfer
• Travel Interruption Benefits
• US Fidelis Extended Vehicle Warranty
• Used Vehicle
• Vehicle Identification Number
• Wear and Tear

AAA Extended Auto Warranty: AAA is a national federation comprised of more than 50 individual clubs throughout the United States and Canada. AAA does not offer an extended warranty, call us at 1-866-225-6415 for more information on what trusted extended warranties are available.

A Rated: An industry term used as a business rating reference. "A-Rated” is the highest rating a business can receive.

Administrator: A company that authorizes and pays the repair facility for covered repair work to your vehicle. The administrator works with the repair facility to insure your claim is repaired properly according to your extended warranty coverage plan.

A.M. Best & Co: A.M. Best Company is the leading source for insurance company analysis and ratings. A. M. Best offers analysis on thousands of insurance companies and has become the industry's standard measurement of an insurance company's financial condition.

Authorization: The official approval to pay for cover repairs issued by the extended warranty administrator. Authorization is granted before repairs are started.

Bumper to Bumper: Otherwise known as an “exclusionary” policy. This is the most comprehensive extended auto warranty available. It covers so many parts and components of your vehicle that the policy only lists the items that are not covered under the warranty. Bumper to bumper warranty plans usually cover all electrical and mechanical components of an automobile excluding maintenance items such as tires, batteries and light bulbs.

Cancellation: A cancellation clause allows the extended auto warranty holder to cancel the policy and receive a refund. Most extended auto warranties have a 30 day full refund cancellation clause, providing no claims have been filed. Typically, cancellation refunds are prorated based on the length of time and mileage driven while the policy was in force.

Corrosion Warranty: A corrosion warranty is a manufacturer’s warranty that covers rust and perforation on the metal body of the vehicle. Vehicle extended warranties usually do not cover corrosion.

CUNA Vehicle Extended Warranties: CUNA Mutual Group is the marketing name for CUNA Mutual Insurance Society and its affiliates and subsidiaries, including CUMIS Insurance Society, Inc. Product availability and features may vary by jurisdiction and are subject to actual policy language.

Deductible: The amount stated in your extended auto warranty policy that you must pay the repair facility for each covered repair done to your vehicle. The warranty company pays the balance of the covered repair. Typical deductibles range from $0 to $200 and the lower deductibles are usually options you can purchase for a small surcharge.

Diagnostics: Exploration time the repair facility performs to your vehicle in order to determine the required repairs. Most auto warranty plans typically do not cover diagnostics.

Exclusionary Policy: Also known as a Bumper to Bumper warranty, this is the most comprehensive extended auto warranty available. It covers so many parts and components of your vehicle that the policy only lists the items that are not covered under the warranty.

In-Service Date: The date the vehicle was purchased by the original owner. Also, the date the vehicle was first placed in use for rental, demonstration, or other purposes.

Insurer: An insurance company that issues a policy and guarantees the obligations and performance of the extended auto warranty plan administrator. Most reputable auto warranty companies are backed by, or insured by, an insurance company to guarantee payment of policy claims should the auto warranty company default on claim payments.

Manufacturer's Recommended Maintenance Guidelines: Routine maintenance to keep your vehicle in safe and in good operating condition. Typical maintenance guidelines include how often to change the engine oil, checking proper fluid levels, perform tire rotations, and replacement of certain parts at specific intervals. Not following the manufacturer’s recommended maintenance schedule may void your auto warranty agreement.

New Vehicle: As applied to extended auto warranties, the term new vehicle refers to a vehicle that is still covered by the original manufacturer's bumper to bumper warranty. This term does not mean that the vehicle was purchased “brand new” or you are the first owner, simply that the vehicle is still covered by the original manufacturer’s bumper to bumper warranty.

Odometer Miles: The actual miles the vehicle has traveled as displayed on the vehicle’s odometer. Failure of the odometer will void an auto warranty agreement unless the replacement of the new functioning odometer has been certified by the repair facility and documented to the extended warranty company.

Plan Expiration: This is the date or odometer mileage when the extended auto warranty policy will no longer be in effect. For example, a 3 year / 75,000 mile extended warranty will expire 3 years from the date that you enroll your vehicle or when the odometer reads 75,000 miles. Another example would be a 24 month / 24,000 miles extended warranty which would expire 24 months or 24,000 additional miles on the odometer after you have enrolled your vehicle. The specific plan expiration is stated in the extended warranty agreement.

Plan Term: The amount of time in years or months that your extended auto warranty policy will pay for repairs to your vehicle.

Power train Coverage: This is a limited extended auto warranty that only covers certain parts of your vehicle’s engine, and transmission. A power train policy typically covers only the most expensive components on your vehicle.

Rental Benefit: The amount you will be reimbursed for actual expenses incurred for substitute transportation while your vehicle is being repaired. Rental benefits are only reimbursed if the breakdown was caused by a covered component. Certain exclusions are defined in the extended warranty plan that typically cover benefits if labor exceeds a specific number of hours, or limit reimbursements to a specific dollar amount per day, or for a maximum number of days.

Roadside Assistance: An additional auto warranty plan benefit that provides roadside assistance such as towing, battery jump, flat tire repair, fuel and fluid delivery or help for an emergency lock out. These benefits include a toll free telephone number to call for service 24 hours a day and 365 days a year.

Stated Component Coverage: Stated Component policies list the vehicle’s parts and components that are covered by the extended warranty. If the component or part is not listed then it is not included in the warranty plan.

Transfer: A vehicle with a transferable extended auto warranty may have the warranty transferred to the new owner if the vehicle is sold privately. A small transfer fee is usually required.

Travel Interruption Benefits: Reimbursement for lodging and restaurant expenses due to a covered breakdown of your vehicle while traveling away from home. Travel is typically defined as over 100 miles from your residence.

US Fidelis Extended Vehicle Warranty: This company is not trustworthy and should be avoided. The Better Business Bureau gave them a rating of F on a scale from A+ to F due to customer complaints in the 1000s.

Used Vehicle: As it pertains to auto extended warranties, the term “used vehicle” means a vehicle whose original manufacturer's warranty has expired. This term does not mean that the vehicle was not purchased “brand new” or you are not first owner, simply that the vehicle’s original manufacturer’s bumper to bumper warranty has expired.

Vehicle Identification Number (VIN): Each vehicle has a unique Vehicle Identification Number established by the manufacturer which codes the vehicle’s individual characteristics at the time of manufacture. The VIN number can be found in several places, the most common being:

1. The vehicle title
2. The vehicle registration
3. The vehicle insurance card
4. A plaque on the driver-side dashboard of the vehicle

Wear and Tear: Additional auto warranty coverage for parts that have worn out beyond what the manufacturer terms “normal tolerances”, as opposed to simply breaking. This is a much broader coverage of parts than a standard extended warranty. Normal maintenance items are not covered, for example brake pads/shoes, rotors/drums, clutch plates, wiper blades, and fan belts.