Administrator
The Administrator is the company that actually pays for work
done on your car at a repair facility. They work with your mechanic
to make sure your claim is handled properly, and make sure you and
your vehicle are back on the road as quickly as possible.
A.M. Best
A.M. Best analyzes and rates insurance companies, and supplies
the information to you. Any reputable warranty administrator will
be backed by an insurance company. You can find their rating on the
A.M. Best Web site: www.ambest.com.
Basic Warranty
The manufacturer of a vehicle has specific terms and conditions
for covering repairs. Their basic warranties cover most parts
installed by the factory or dealer, but only last for a limited
time period or up to a certain mileage. See also Warranty.
Breakdown
When a part doesn't do what it's designed to do, that's a
breakdown or failure. As long as the part is covered on your
extended auto warranty plan, it'll be repaired or replaced, at very
little out-of-pocket expense.
Certified Car
A certified car has been through a quality inspection process.
There is no industry standard for the quality inspection or
certification. Manufacturers often certify a vehicle before sale or
lease, and attach a limited powertrain warranty. A certified car
does not come with a bumper-to-bumper warranty.
Claims Reserve Account
An account containing insured funds that the administrator uses
to pay claims.
Corrosion Warranty
Parts that are never covered under warranty because they wear
out in the normal, everyday use of a car. They include such parts
as tires, wiper blades, batteries and clutch plates. See also Wear
and Tear.
Deductible
A small amount that you, as the car owner, pay to have your
vehicle repaired. Once the deductible is paid, the rest of the
repair bill is covered by your extended auto warranty policy.
Emissions Warranties
Federal regulations dictate the conditions of the Federal
Emissions Warranty in all states, and vehicles are covered by two
types, the "Emissions Defect Warranty" and the "Emissions
Performance Warranty."
The Emissions Performance Warranty typically covers a vehicle
for 3 years or 50,000 miles, and may vary depending on the state
where you live. Your owner's manual can tell you your exact
Emissions Defect Warranty coverage. It is usually in line with the
manufacturer's bumper-to-bumper warranty for certain
emissions-related parts for up to 8 years or 80,000 miles,
whichever comes first.
Extended Warranty
Also known as a Vehicle Service Contract. An extended warranty
protects against mechanical failure and breakdown for covered
repairs after the manufacturer's warranty expires.
Gray Market Vehicle
A "Gray Market" vehicle is one not manufactured for sale in the
U.S. Often not meeting U.S. standards and guidelines, and carrying
no manufacturer's warranty, these vehicles are typically not
eligible for extended warranties.
Inclusionary Policy
An inclusionary policy lists every component covered by your
extended warranty. If a part doesn't appear on the list, then it
isn't covered.
In-Service Date
The date a car or truck was originally purchased and put on the
road.
Insurance Company
The best warranty providers are backed by insurance companies
whose policies guarantee that the administrator can pay for repairs
on your vehicle.
Extended Warranty
Also known as a Vehicle Service Contract. An extended warranty
protects against mechanical failure and breakdown for covered
repairs after the manufacturer's warranty expires.
Lemon Law
A "lemon law," or "buyback" vehicle is so named by the state
when it has one or more major, recurring problems and has been
bought back, or had its purchase price renegotiated by the
manufacturer. These vehicles are not eligible for coverage.
Maintenance Guidelines
Normal, routine maintenance recommended by the manufacturer of
your vehicle to keep it in optimum condition. Suggested timing for
oil changes, tune ups, fluid checks, tire rotation, wheel
alignment, belt and hose replacement and other maintenance is
spelled out in your owner's manual.
Manufacturer's Warranty
Every new vehicle comes with a standard auto warranty, covering
all factory-installed parts against defects. Typical manufacturer's
auto warranties cover 3 years/36,000 miles, 4 years/50,000 miles or
5 years/60,000 miles.
Mechanical Breakdown Insurance
An insurance policy that guarantees repairs or replacements to a
vehicle when parts break down due to defects or poor mechanical
labor. Normally, MBI does not cover parts that fail due to normal
wear and tear. In California, insurance companies must be
authorized by the California Department of Insurance (CDI) to offer
MBI. The CDI reviews the insurance company's business practices to
make sure you are protected and receive a fair price for this
coverage.
Provider
Your warranty's provider is ultimately financially responsible
for your claim. A provider stands behind an administrator and makes
sure your policy and claim are properly taken care of. At
Continental, our providers are highly rated and respected insurance
companies.
Powertrain Warranty
After the basic, bumper-to-bumper warranty lapses, the
powertrain warranty goes on to cover the engine and transmission
only. A powertrain warranty is very limited, and does not cover the
parts that most frequently break down. Powertrain warranties often
are not transferable if you sell your vehicle during the contract
period.
Repair Facility
You can go to your choice of any repair facility that is
authorized and licensed in the United States, whether you prefer
your dealership, local mechanic or a national repair facility.
Risk Retention Group (RRG)
Only in existence since 1981, Risk Retention Groups (RRG) back
certain warranty companies in place of insurance companies. But
unlike insurance companies, RRG are not rated by A.M. Best and may
not meet the same operational and financial standards. While RRG
are exposed to the same risks, they lack the level of risk
diversification that ensures protection for customers of insurance
companies.
Roadside Assistance
A roadside assistance program offers you emergency help-24 hours
a day, 365 days a year-no matter where you are in the U.S. or
Canada. If your vehicle breaks down, has a flat tire, needs a jump
or water, or even if you just lock your keys in the car, just call
our toll free number and someone will be there to help.
Vehicle Identification Number (VIN)
Your VIN is a 17-digit number unique to your vehicle. Kind of
like a social security number, but for your car.
Warranty
Also known as an Extended Warranty. A Vehicle Service Contract
protects against mechanical failure and breakdown for covered
repairs after the manufacturer's warranty expires.
Administrator