The consumer guide to uncovering the best value
in auto warranties and repairs.
Extended Auto Warranty Glossary of Industry Terms
A Rated: An industry term used as a business rating reference. "A” rated is the highest rating a business can receive.
Administrator: A company that authorizes and pays the repair facility for covered repair work to your vehicle. The administrator works with the repair facility to insure your claim is repaired properly according to your extended warranty coverage plan.
A.M. Best & Co: A.M. Best Company is the leading source for insurance company analysis and ratings. It offers analysis on more than 7,000 insurance companies. A.M. Best & Co. is over 100 years old and their rating system has become the industry's standard measurement of an insurance company's financial condition.
Authorization: The official approval issued by the extended warranty administrator before repairs are started.
Auto Warranty: A policy that covers a vehicle against mechanical failures and breakdowns. Also know as a Vehicle Service Agreement, Extended Service Agreement, Mechanical Breakdown Agreement, or Extended Warranty. This type of extended warranty will pay for your vehicle's covered repairs based on the terms of the warranty agreement.
Better Business Bureau: The BBB is an independent monitor of a company’s complaint handling record. A warranty company or warranty broker that participates in the BBB Online Reliability Program agrees to abide by the BBB Code of Online Business Practices and agrees to dispute resolution with the BBB and customer. The majority of the companies who participate in this program value their standing and reputation and tend to do a better job at handling complaints.
Bumper to Bumper: Otherwise known as an “exclusionary” policy. This is the most comprehensive extended auto warranty available. It covers so many parts and components of your vehicle that the policy only lists the items that are not covered under the warranty. If a particular part or component is not listed it is covered under a bumper to bumper policy.
Cancellation: A cancellation clause allows the extended auto warranty holder to cancel the policy and receive a refund. Most extended auto warranties have a 30 day full refund cancellation clause, providing no claims have been filed. Typically, cancellation refunds are prorated based on the length of time and mileage driven while the policy was in force.
Corrosion Warranty: A corrosion warranty is typically a manufacturer’s warranty that covers rust and perforation on the metal body of the vehicle. These can also be purchased as an aftermarket policy. Some anti-corrosion products include a product warranty or guarantee.
Copyright © 2005-2009 ConsumerAutomotiveResearch.com