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Common Industry Terminology

Confused about certain terms used when obtaining coverage?
Get yourself up to speed with our glossary of terms.

  • Administrator
    The company that processes your claims, works with your repair facility, and pays for your repair work.
  • ASE Certified
    Auto mechanic certification program developed by the National Institute for Automotive Service Excellence. To attain certification, mechanics must pass at least one exam and provide proof of at least two years of relevant work experience.
  • Bumper to Bumper
    Comprehensive coverage that protects your vehicle from nearly all mechanical, electrical, and computer-related items between the front and rear bumper.
  • Consumable Item
    Items typically not covered under a service contract because they wear out with use, including batteries, tires, and wiper blades.
  • Deductible
    The amount designated by your contract that you must pay to your repair facility for their work on your vehicle. Depending on the terms of your contract, the deductible could be anywhere from $0 to $500.
  • Gray Market Vehicle
    Vehicles not manufactured in the U.S. and typically not built to U.S. standards. These vehicles do have a warranty and are not usually covered by a service contract.
  • Inclusionary Coverage
    A service contract listing of every vehicle part covered by the contract. Only parts on the list are covered.
  • In-service Date
    The date of purchase by the original owner of a vehicle, or the date that a vehicle was first put on the road as a rental or demo car.
  • Obligor
    The insurance company that insures the Administrator, so they have the consistent financial backing necessary to pay your claims.
  • Lemon Law
    Laws set in each state to help protect consumers from vehicles that consistently fail to meet automotive standards.
  • Maintenance Guidelines
    Manufacturer recommendations for routine maintenance on your vehicle, including oil changes, tire rotations, fluid levels, and tune-ups as outlined in your vehicle’s maintenance book. Maintenance guidelines must be followed and documented in order to ensure that your service contract claims will be paid.
  • Make
    The manufacturer or division of the manufacturer that built your vehicle.
  • Manufacturer
    The company that made your vehicle.
  • Model
    The specific type of vehicle, often defined by a particular car body style, made by the manufacturer.
  • Rebuilt Title
    A title notation verifying that a salvaged vehicle has been restored and repaired.
  • Rental Benefit
    The amount designated in your contract that you will be reimbursed for rental car expenses while your vehicle is being repaired.
  • Roadside Assistance
    The 24-7, toll-free number that you can call for service if your vehicle breaks down or you need help while on the road, including towing, repairing flat tires, retrieving keys from a locked car, and more.
  • Salvage Title
    A title notation declaring that a badly damaged vehicle is considered a total loss, or “totaled.”
  • Transferability
    The ability to transfer your service contract to a new vehicle owner when you sell your car.
  • Travel or Trip Interruption Benefit
    The amount designated in your contract that you will be reimbursed for lodging and meals while your vehicle is being repaired if it breaks down more than 100 miles from your home.
  • Vehicle Identification Number
    The unique 17-digit number assigned to your vehicle, typically found in the driver’s-side dashboard, and also documented in your car title or insurance card.
  • Vehicle Service Contract
    The protection program you purchase to cover vehicle repairs after a manufacturer’s warranty has expired, or to fill any gaps in your current warranty’s coverage.
  • Warranty
    The standard factory coverage (typically 3 years or 36,000 miles) that comes with every new vehicle and protects against mechanical defects. Different from a vehicle service contract, which offers protection beyond your vehicle’s standard factory warranty.

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