Glossary

Aftermarket

Aftermarket Parts: Replacement parts that are not made by the original equipment manufacturer (OEM) but are designed to function as a substitute for OEM parts.

ASE-Certified Technician

A technician who has passed the certification exams administered by the National Institute for Automotive Service Excellence (ASE) and has demonstrated a high level of competency in automotive repair and maintenance.

Claim

A request made by a warranty holder for reimbursement or payment of covered repairs under their warranty contract.

Comprehensive Coverage

An extended warranty plan that covers a wide range of vehicle components and systems but is not as all-inclusive as bumper-to-bumper coverage.

Consequential Damage

Secondary damage that results from the failure of a covered component.

Cooling System

The vehicle system responsible for maintaining proper engine temperature, including components such as the radiator, water pump, and thermostat.

Deductible

The amount a warranty holder must pay out-of-pocket for a covered repair before the warranty provider pays the remaining cost.

Diagnostic Fee

A fee charged by a repair facility for determining the cause of a vehicle's problem and recommending the necessary repairs.

Drive Axle

A component that transfers power from the vehicle's transmission to the wheels, enabling the vehicle to move.

Electrical System

The network of components in a vehicle responsible for powering various electrical devices, such as the headlights, taillights, and ignition system.

Emission System

The vehicle system responsible for controlling and reducing the release of harmful pollutants from the engine.

Extended Warranty

A vehicle service contract purchased separately from the manufacturer's warranty, offering additional coverage for vehicle components and systems beyond the original warranty period.

Factory-Installed Options

Features and equipment installed on a vehicle by the manufacturer, as opposed to aftermarket additions.

Fuel System

Features and equipment installed on a vehicle by the manufacturer, as opposed to aftermarket additions.

Grace Period

A specified period of time after the purchase of a warranty contract during which the contract can be canceled without penalty.

In-Service Date

The date on which a vehicle is first sold to a retail customer or first used as a demonstrator, rental, or company vehicle.

Licensed Repair Facility

A professional automotive repair shop that has the appropriate state and local licenses to perform automotive repair and maintenance.

Limited Warranty

Limited Warranty: A warranty plan that covers only specific components or systems of a vehicle, as opposed to comprehensive or bumper-to-bumper coverage.

Manufacturer's Warranty

A guarantee provided by the vehicle's manufacturer that covers certain repairs and defects for a specified period of time.

Mechanical Breakdown

The sudden and unexpected failure of a covered vehicle component.

Original Equipmen

Parts made by the same manufacturer that produced the vehicle or by a supplier authorized by the manufacturer.

Out-of-Pocket Expense

The amount a warranty holder must pay for repairs or services not covered by their warranty contract.

Powertrain Coverage:

A warranty plan that covers the vehicle's essential components, such as the engine, transmission, and drive axle.

Pre-Existing Condition

A vehicle component or system that was not functioning correctly or was already damaged before the purchase of a warranty contract.

Roadside Assistance

A service included in many warranty contracts that provides assistance in emergency situations, such as towing, flat tire repair, battery jump-starts, fuel delivery, and lockout assistance.

Reconditioned Parts

Used vehicle parts that have been restored to like-new condition, often used as a cost-effective alternative to new or OEM parts.

Service Contract

A formal agreement between a warranty provider and a vehicle owner that outlines the terms and conditions of the warranty coverage, including covered components, term length, and any applicable deductibles.

Suspension System

The vehicle system responsible for supporting the vehicle's weight, absorbing road impacts, and providing a smooth and stable ride.

Transfer Fee

A fee charged by a warranty provider to transfer the remaining coverage of a warranty contract to a new vehicle owner when the original owner sells the vehicle.

Transmission:

A key component of a vehicle's powertrain that transfers power from the engine to the drive wheels, enabling the vehicle to move at various speeds.

Underwriting

The process by which a warranty provider assesses a vehicle's eligibility for coverage and determines the appropriate terms and pricing for a warranty contract.

Vehicle Identification Number (VIN)

Vehicle Identification Number (VIN): A unique 17-character code assigned to each vehicle, providing information about its manufacturer, model, and production history.

Vehicle Inspection

A comprehensive evaluation of a vehicle's condition, typically performed by a qualified technician or mechanic, to assess the functionality of its components and systems.

Vehicle Service History

A record of all maintenance and repair work performed on a vehicle, including dates, services performed, and repair facility information.

Wear and Tear

The normal deterioration of vehicle components over time due to regular use and age.