Customized Coverage

Car Warranty Glossary


This is the company that takes care of claims, details, and behind-the-scenes operations for each contract. While some companies outsource their administration we take care of everything in-house making the experience easier for the customer.

Basic Warranty

This is also referred to as the manufacturer warranty. It usually covers everything but wear and tear (items like brake pads and tires) and maintenance.

Claims Reserve Accounts

This is the money that is reserved primarily to pay for claims. This adds stability to a company making sure their customers are taken care of.

Consumable Items

These are the components of a vehicle (like windshield wipers and oil filters) that require relatively frequent replacement. These are usually not covered by any sort of warranty.


This is the portion of the covered claim that the customer will pay. This varies depending on the options chosen for the plan.

Drive Train

This part of the vehicle transfers power from one place to another. It consists of the drive belt, running belt, rollers, and motor. Sometimes referred to as the Powertrain.

Extended Warranty

Any warranty that is used after the original manufacturer warranty. They are offered by the original manufacturer or a third-party provider, sometimes called an aftermarket warranty.

Exclusionary Coverage

This type of coverage lists the few items that are not covered rather than the many that are.

In-Service Date

The date when the vehicle comes into operating service. In general this is when the vehicle was first purchased and driven off the lot.

Lemon Law

This law protects customers from recently purchased vehicles that breakdown more than normal allowing the customer to return the vehicle for a full or partial refund as long as the vehicle meets certain requirements.

Maintenance Guidelines

These are the vehicle’s specific guidelines provided by the manufacturer on when to do proper vehicle care. This includes oil changes, tire rotations, transmission flushes, etc. Customer should refer to their owner’s manual for specific details.

Manufacturer Warranty

This is the original warranty on a new vehicle that is typically exclusionary. These are mostly only valid at manufacturer dealerships.

Itemized Component Coverage

This type of coverage lists the specific items that are covered. This is not as comprehensive as an exclusionary coverage contract but does cover many main components of the vehicle.

Powertrain Warranty

This type of warranty covers the main mechanical components that power the vehicle. Manufacturers often include this type of coverage to their original manufacturer warranty.

Rebuilt Title

This title is applied to vehicles that have been rebuilt, restored, or reconditioned that were once considered salvaged or inoperable. These are usually not covered by an aftermarket warranty.


This is when a component of a vehicle malfunctions on many of the same type of vehicle. The manufacturer often entitles the customer to a courtesy repair of the malfunctioned part.

Repair Facility

Any ASE-certified mechanic, auto dealer service center, national chain service center, or other auto maintenance facility.

Rental Benefit

This part of the warranty covers the cost of a rental car during the repair of a covered part. See the specific contract for details.

Roadside Assistance

A benefit of a warranty that provides access to emergency assistance including out-of-gas, towing, flat-tire service, lock-out, and others.

Salvage Title

This title is granted to a vehicle that has been damaged to such extent that it has lost 75% or more of its previous market value. Aftermarket warranties usually do not provide coverage for this type of vehicle.

Technical Service Bulletin (TSB)

This bulletin provides information to mechanics on common problems and how to correct them.

Vehicle Identification Number (VIN)

A manufacturer assigns this number to each vehicle it produces. This number helps identify what type of vehicle it is and is needed in accidents, insurance records, etc.

Wear and Tear

Wear and Tear covers components that have not completely failed but are not performing up to manufacturer specifications.