:: Automobile Warranty Terms: A to C – D to L – M to U – R to Z

Deductible: The amount that a customer is responsible for paying the repair facility for a claim, as stated in your extended auto warranty policy. The warranty company pays the balance of the claim. Deductibles usually range from $0 to $200. Lower deductibles are typically options that can be purchased for a small charge.

Diagnostics: The effort by the repair facility to determine the cause of the vehicle’s problem, and to determine the necessary course of repair. Most auto warranty plans typically do not cover diagnostics, unless the diagnostics lead to the repair of a covered component.

Eligibility: The level of warranty coverage available on a particular vehicle based on certain criteria. Eligibility is typically based on the vehicle’s age, mileage, make and model. Other important factors are whether the vehicle is a four-wheel-drive, is turbo/supercharger, and its number of cylinders. History and usage can also be factors, for example whether the vehicle is used for commercial purposes. Each extended auto warranty plan has its own set of eligibility requirements. Many extended warranty plans offer riders, or surcharges, for certain components or usages.

Exclusionary Policy: Also known as a bumper-to-bumper policy. This is the most complete extended auto warranty in existence. A bumper-to-bumper car warranty contract lists only parts excluded from coverage, since there are too many covered parts to list. Unless a specific part is not listed on the contract, then it is covered by a bumper to bumper plan.

Extended Auto Warranty: An extended service contract that agrees to pay claims for mechanical failures and breakdowns. Also know as a Vehicle Service Agreement, Extended Service Agreement, Mechanical Breakdown Agreement, or Extended Warranty. This type of policy is intended to protect a consumer from paying for unexpected vehicle expenses.

In-Service Date: The original purchase date of the vehicle’s first owner. The first owner can have been a rental agency or other company.

Inclusionary Policy: Also known as a “Stated Component Coverage” extended warranty. The contracts for inclusionary policies list covered components. If the component or part is not listed then it is not covered.

Inspection: The examination of your vehicle by a certified technician. A pre-warranty inspection is when a technician ascertains the condition of the vehicle, and notes any problems, or the lack of any. Inspections are sometimes required by some auto warranty companies for higher mileage or older vehicles.

Insurer: Also known as re-insurers, the insurance company that guarantees the obligations and responsibilities of the automobile warranty administrator. Any reputable auto warranty company is backed by, or insured by, a traditional insurance company to guarantee the payment of claims should the auto warranty be unable to do so.

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