The definitions contained here are defined by how they relate to RV extended warranties and vehicle service agreements.

Administrator
The company that authorizes and pays for repair work to your vehicle. The administrator works with the repair facility to make sure claims are administrated properly.

A.M. Best & Co
A company that offers comprehensive data to insurance professionals. Founded in 1899 by Alfred M. Best, A.M. Best is the world's oldest and most authoritative source of insurance company ratings and information. Its Best's Ratings are the industry's standard measure of insurer financial performance.

Basic Warranty
The specific terms established by each manufacturer to repair vehicles through a specified mileage and/or time period. All factory installed parts and some dealer-installed accessories are covered against defects and workmanship. Tires carry their own warranty (but can be repaired under the factory warranty by some manufacturers). Wear items and adjustments may have limited or no coverage.

Bumper to Bumper Coverage
True bumper-to-bumper coverage is always ‘exclusionary’ coverage. This means that everything on a vehicle is covered excluding certain items such as maintenance, trim items like moldings, weather-stripping, etc. However, in recent years, some warranty companies have begun using the term “bumper-to-bumper” much more liberally in an effort to apparently give consumers the impression that they are receiving more coverage than they actually are.

Cancellation
Allows the owner to receive a full 100% money back guarantee if the policy is cancelled with the first 30 days of enrolling, providing that there have been no claims filed. After 30 days, the refund is prorated based on time and mileage that the policy was in force.

Corrosion Warranty
Covers rust-through perforation on sheet metal with actual holes. Surface corrosion from nicks, chips and scratches are not covered.

CSI
Customer Satisfaction Index or other programs used to measure sales and service performance.

Deductible
Amount that must be paid by the customer before repairs can be performed paid by the administrator.

Eligibility
Determining if a specific vehicle meets the administrator’s underwriting guidelines. Typically, the vehicle must be less than 10 model years old and have less than 100,000 odometer miles in order for it to be eligible for warranty coverage.

Extended Service Contract Warranties
Are offered by the manufacturer and other agencies (backed by Insurance companies) to wrap around, extend or enhance the original manufacturer warranties. Service contracts are also offered on used vehicles beyond manufacturer warranty limits.

Exclusionary Policy
The most comprehensive extended warranty available. It is most commonly referred to as a "bumper to bumper" warranty. This particular policy is ‘exclusionary’ in that it will list the components of your vehicle that are not covered.

In-Service Date
The date and mileage of first retail ownership. Vehicles titled by the manufacturer, dealer fleets or rental companies constitute a registered owner.

Manufacturer
The manufacturer is the company that built your vehicle.

Manufacturer Warranty
The warranty that comes with the vehicle at no cost and covers parts and labor as legally set forth by each manufacturer’s terms, conditions and statements.

Named Component Coverage
A policy that lists the components and parts that are covered by the extended warranty. If the component or part is not listed, then it is not covered.

Odometer Miles
The actual total miles the Vehicle has traveled as indicated on the vehicle’s odometer.

Original Equipment
Parts and accessories that are built by original equipment manufacturers (O.E.M) that are installed on the vehicle.

Power Train Warranty
A limited warranty that covers certain parts of your vehicles engine, transmission and drive train.

Reinsurance Company
The company that issues an insurance policy and guarantees the obligations of the insurance company.

Repair Facility
Usually an ASE certified repair facility located in the United States or Canada. This includes, auto dealerships, local mechanics as well as national repair franchises.

Roadside Assistance
Programs that provide vehicle owners with a toll-free phone number to call in case of breakdowns (mechanical, out-of-fuel, lock-out, etc.).

Seals and Gaskets
Seals and gaskets; sealing boots are covered for all of the listed covered components.

Service Contract
Means a contract in writing to perform, over a fixed period of time or for a specified duration, services relating to the maintenance or repair (or both) of a consumer product.

Term of Coverage
The amount of time in years and / or mileage that your extended warranty coverage is in force.

Transferability
The ability of the consumer to have the warranty transferred to the new owner of the vehicle if the vehicle is sold privately. An administration fee usually applies.

Used Vehicle
An automobile whose original manufacturer's warranty has expired.

Vehicle Identification Number (VIN)
Your Vehicle Identification Number (VIN) is a series of 17 digits that describes the characteristics of your vehicle. Each vehicle has a unique VIN.

Wear and Tear
When a part or component has failed because it no longer performs the function for which it was designed solely because of its condition. Wear and Tear happens when the part has worn beyond the manufacturer's tolerances allowed for that particular vehicle.

Return To Top