The consumer guide to uncovering the best value
in auto warranties and repairs.
Extended Auto Warranty Glossary of Industry Terms
Odometer Miles: The actual miles the vehicle has traveled as displayed on the vehicle’s odometer. Failure of the odometer or removal will void an auto warranty agreement unless the replacement of the new functioning odometer has been certified by the repair facility and documented to the extended warranty company.
Plan Expiration: This is the date or odometer mileage when the extended auto warranty policy will no longer be in effect. For example, a 3 year / 75,000 mile extended warranty will expire 3 years from the date that you enroll your vehicle or when the odometer reads 75,000 miles. Another example would be a 24 month / 24,000 miles extended warranty which would expire 24 months or 24,000 additional miles on the odometer after you have enrolled your vehicle. The specific plan expiration is stated in the extended warranty agreement.
Plan Mileage: The total mileage that the extended auto warranty policy covers your vehicle. Typically this is the mileage on the vehicle’s odometer, but can also be additional mileage from the beginning of coverage, or unlimited mileage based on the extended warranty plan coverage expiration statement.
Plan Term: The amount of time in years or months and/or the total mileage that your extended auto warranty policy will cover your vehicle.
Powertrain Coverage: This is a limited extended auto warranty that only covers certain parts of your vehicle’s engine, transmission, and drive train. A powertrain policy typically covers only the most extensive to repair components on your vehicle.
Product Warranty: Product warranties generally cover fewer parts than an extended warranty, service contract, or mechanical breakdown insurance policy. A product warranty is only allowed by law to cover parts that are in direct contact with the product or parts that are mechanically connected to those parts. For example, a manufacturer of an engine oil may warrant that by using their product the engine will not break. However, the maker of the oil is not allowed to warrant that the car horn won’t break, since a car horn is not in direct contact with oil and is not mechanically connected to a part in contact with oil
A product warranty may not be sold for a separate price and must be provided free of charge. Product warranties usually limit how much you can recover for parts that need repairs. Unlike extended warranties, product warranties are usually not guaranteed by an insurance company.
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