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

Ratings: Ratings are independent assessments for reporting a company’s financial strength. (see A.M. Best & Co. and A Rated.)

Re-insurer: Also known as a Re-insurance Company. An insurance company that issues a policy to guarantee, or re-insure, the financial responsibilities of the warranty provider.

Rental Benefit: The amount you will be reimbursed for obtaining a rental vehicle/ substitute transportation while your vehicle is being repaired. Rental benefits are only reimbursed if the breakdown was caused by a covered part or component. Rental benefits are specified in the warranty contract. There will be criteria related to the number of hours a car must be in the shop, for example, to use the rental benefit. Other criteria relate to the number of days that the benefit can be used, or the maximum dollar amount to be reimbursed.

Repair Facility: A place where vehicles are repaired. More specifically, warranty companies require that the customer use a licensed auto repair facility as described in your specific extended auto warranty plan. This includes, but is not limited to, a dealership, service station, or national repair center.

Roadside Assistance: An additional auto warranty plan benefit that offers emergency assistance such as towing, battery jump, flat tire repair, fuel and fluid delivery, or help if you are locked out of your vehicle. These benefits are normally accessible through the warranty company’s claims number.

Stated Component Coverage: Also known as an inclusionary policy. The contracts for inclusionary policies list covered components. If the component or part is not listed then it is not covered.

Transfer: A vehicle with a transferable auto warranty can have the warranty transferred to another owner if the vehicle is privately sold. Sometimes there is a nominal transfer fee, and/or the number of transfers is limited.

Travel Interruption Benefits: Reimbursement for food and lodging expenses due to mechanical breakdown of your vehicle during a trip, usually further than 100 miles from home

Used Vehicle: As applicable to extended warranties, the term used vehicle means that a vehicle is outside of its original manufacturer’s bumper to bumper warranty. This term does not mean that the vehicle was not purchased with no miles, or that you are not first owner, only that the vehicle’s original manufacturer’s bumper to bumper warranty has ended.

Vehicle Identification Number (VIN): The serial number of the vehicle. The VIN is assigned by the manufacturer based on the vehicle’s individual characteristics, such as the year built, and country of final assembly. The VIN can be found in several places:

• The vehicle’s title
• The vehicle’s registration
• The vehicle’s insurance card
• A plaque on the driver-side dashboard of the vehicle, observable through the outside looking in.

Wear and Tear: Automobile warranty coverage for parts that have worn out so that they are operating outside of how they were designed to operate. This is a much deeper coverage of parts than found in a standard extended warranty. Normal maintenance items are not covered, such as brake pads/shoes, rotors/drums, clutch plates, wiper blades, and fan belts.

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