Glossary

A

Administrator

The organization that manages your repair claims, coordinates with your mechanic or repair shop, and issues payment for approved repair work.

ASE Certified

A credential issued by the National Institute for Automotive Service Excellence to qualified technicians. To earn this certification, mechanics must successfully pass one or more exams and verify at least two years of relevant hands-on experience.

D

Deductible

The out-of-pocket cost you’re responsible for paying to the repair facility before your coverage applies. The specific amount is outlined in your contract and can range from zero to $1,000.

G

Gray Market Vehicle

A vehicle originally manufactured for sale outside the United States that doesn’t fully meet U.S. specifications. These vehicles often retain a manufacturer’s warranty but are typically not eligible for service contracts.

I

Inclusionary Coverage

A service plan that lists each individual component that’s protected under the contract. Only the parts mentioned are covered for repairs.

In-service Date

The date the vehicle was first sold to its original owner, or when it was first placed in use, such as being operated as a demo or rental car.

O

Obligor

The entity responsible for honoring claims and maintaining the financial backing to ensure payments are made. In many cases, this term is used interchangeably with “Administrator.”

L

Lemon Law

Consumer protection laws established by individual states to assist buyers who purchase vehicles with recurring defects or safety issues that the manufacturer cannot resolve.

M

Maintenance Guidelines

The manufacturer’s official recommended schedule for routine upkeep, such as oil changes, tire rotations, and fluid checks, which is found in your owner’s manual. Adhering to these recommendations and keeping proper records is essential for claim approval.

Make

The brand or division of the company that produced your vehicle.

Manufacturer

The company that designs, builds, and assembles your vehicle.

Model

The particular version or style of a vehicle made by a manufacturer, often identified by name and body type.

R

Rebuilt Title

A title designation which indicates that a vehicle once declared a total loss has been repaired and restored to operating condition.

Rental Benefit

A coverage feature that reimburses you up to a specified amount for rental car expenses while your vehicle is being repaired under a covered claim.

Roadside Assistance

A 24-hour helpline offering emergency services such as towing, jump-starts, tire changes, fuel delivery, or lockout help if your vehicle becomes disabled while traveling.

S

Salvage Title

A notation on a vehicle’s title showing that the car has been severely damaged and deemed a total loss by an insurance company.

T

Transferability

A feature that allows you to pass your vehicle service contract to a new owner if you sell your car, which can increase its resale value.

Travel or Trip Interruption Benefit

Reimbursement for food and lodging expenses if your vehicle breaks down more than 100 miles from home and requires overnight repairs.

V

Vehicle Identification Number (VIN)

A unique 17-character code assigned to every vehicle that identifies its make, model, year, and origin. It can typically be found on the dashboard near the windshield or on official documents like your title or insurance card.

Vehicle Service Contract

An optional protection plan you can buy to help pay for covered repairs once your manufacturer’s warranty has ended, or to supplement coverage not included in that warranty.

W

Warranty

The original protection provided by the manufacturer, which is usually for a set number of years or miles, that covers mechanical defects and workmanship issues on new vehicles.