The consumer guide to uncovering the best value
in auto warranties and repairs.
Extended Auto Warranty Glossary of Industry Terms
Deductible: The amount stated in your extended auto warranty policy that you must pay the repair facility for each covered repair done to your vehicle. The warranty company pays the balance of the covered repair. Typical deductibles range from $0 to $200 and the lower deductibles are usually options you can purchase for a small surcharge.
Diagnostics: The exploration the repair facility performs to your vehicle in order to determine the required repairs. Most auto warranty plans typically do not cover diagnostics.
Eligibility: The amount of extended warranty coverage available on a particular vehicle based on specific characteristics and usage. Eligibility is typically based on age, mileage, make and model of the vehicle including components such as four-wheel-drive, turbo/super chargers, number of cylinders. History and usage are also taken into consideration, for example a salvaged title or the commercial use of the vehicle. Each extended auto warranty plan has its own specific set of eligibility requirements. Some extended warranty plans offer riders, or surcharges, for certain components.
Exclusionary Policy: Also known as a Bumper to Bumper warranty. 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 this type of extended warranty.
Extended 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 Auto Warranty. This type of warranty will pay for your vehicle's covered repairs based on the terms of the warranty agreement.
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