A
| B | C | D
| E | I | M
| N | O | P
| R | S | T
| U | V | W
A
'A' Rated: A term often used as a
rating reference (ie Standard
& Poor’s "A Rated"). Many
people know Standard & Poor's
as one of the world's preeminent providers of credit
ratings, and for such globally recognized financial-market
indices as the S&P 500®. They also provide
a wide range of other products and services designed
to help individuals and institutions around the world
make better-informed financial decisions with greater
confidence. AON
is a part of an "A Rated" global organization
with a huge capital base, enabling us to provide our
clients with secured products. "A Rated"
is the highest rating a business can receive, however,
you should not assume that every insurance provider
on the AAautoProtection.com website has obtain such
a rating as they can fluctuate often.
Administrator: A company that authorizes
and pays the repair facility for repair work to your
vehicle. The administrator works hand in hand with
the repair facility to make sure your claim is handled
properly.
A.M. Best & Co: A.M. Best Company
is the leading source for insurance company ratings,
analysis and information. It offers comprehensive,
quality data on more than 6,000 insurance companies.
The company was founded in 1899 and their rating system
has become the industry's standard measure of an insurance
company's financial condition. For more information
go to ambest.com.
Authorization: We must give prior
authorization (official approval) before repairs are
started.
B
BBB: The Better Business Bureau (BBB)
has long been a means consumers have used to check
out a company. It is comprised of 145 independent
local Better Business Bureau chapters, which are affiliated
with the national umbrella organization, the Council
of Better Business Bureaus (CBBB).
The National BBB does run a program
worthy of some consideration. In order to participate
in the BBB Online Reliability Program, a company must
have a satisfactory complaint handling record, agree
to participate in the BBB's advertising self-regulation
program, agree to abide by the BBB Code of Online
Business Practices, and agree to dispute resolution
with the BBB. Most of the companies who participate
in this program value their standing in the BBB, and
tend to do a better job at handling complaints.
"Bumper to Bumper": The
most comprehensive extended warranty available. It
is typically referred to as a exclusionary policy.
This particular policy lists components of your vehicle
that are not covered under the warranty. If a part
or component is not listed, then it is covered under
an exclusionary policy. We offer Bumper
to Bumper policies.
C
Cancellation: Typical
cancellation clauses of an extended warranty are for
the owner to receive a money back guarantee if the
policy is cancelled with in the first 30 days of enrolling,
if there have been no claims filed. After 30 days
a cancellation can only occur in the event that the
Vehicle is declared a “total loss” by
an Insurance company, and then refund is usually prorated
based on time and mileage that the policy was in force.
Corrosion Warranty: A corrosion warranty
is a warranty from the manufacturer that covers rust
and perforation on the metal body of the vehicle.
Check your manufacturer's warranty manual for the
period of time that the vehicle is protected.
D
Deductible: The amount that you must
pay the repair facility for work when vehicle is being
repaired. In most cases a deductible may need to be
paid for each type of mechanical break down.
Diagnostics: The exploration the
repair facility administers to certain parts of your
vehicle to determine the necessary repairs needed
for your vehicle to be operable. You are responsible
for all expenses associated with diagnosis before
any repairs begin.
E
Eligibility: Determining if a vehicle
being in certain classifications and which coverage
can be applied to the vehicle. A vehicle typically
must be less than 15 model years old and have less
than 125,000 odometer miles to be eligible for an
extended warranty. Additionally, vehicles with less
than 50,000 miles and less than 5 years old are eligible
for more comprehensive coverage than may be available
to older more driven vehicles.
Extended Warranty: A policy, which
protects the automobile owner or lessee against mechanical
failures and breakdowns. It can also be termed Vehicle
Service Agreement or Extended Service Agreement. This
warranty will pay for your vehicle's covered repairs
after the manufacturer's warranty has expired.
Exclusionary Policy: The most comprehensive
extended warranty available. It is typically referred
to as a "bumper to bumper" policy. This
particular policy lists components of your vehicle
that are not covered under the warranty. If a part
or component is not listed, then it is covered under
an exclusionary policy. We offer such a policy called
Bumper to Bumper.
I
Inclusionary Policy: or also called
“Stated Component Coverage” Policies that
list the components and parts that are covered by
the extended warranty. If the component or part is
not listed, then it is not covered.
In-Service Date: The date the Vehicle
was purchased by the original owner and driven or
the date the Vehicle was placed in use for rental,
demonstration or other purposes.
Inspection: The examination or review
of your vehicle's components by a certified mechanic.
A vehicle will pass a pre-warranty inspection only
after the mechanic attests to the proper working condition
of all components of your vehicle.
Insurance Company: The insurance
company that issues an insurance policy and guarantees
the obligations of the administrator.
Insurer: Most reputable auto warranty
companies contract with another company to insure
their obligations for a service contract. For example,
if a warranty company ran into financial difficulties
and failed to meet their obligations under the service
contract, the insurer could step in to pay the claims.
As the exact arrangement between the warranty company,
the insurer, and any re-insurers varies from company
to company, always read your contract carefully.
M
Make: The Make of your vehicle is
the same company that manufactured your vehicle.
Manufacturer: The manufacturer is
the company that built your vehicle.
Manufacturer's Recommended Maintenance Guidelines:
This is the routine maintenance that is recommended
by the manufacturer of your vehicle to keep the vehicle
in satisfactory working order. Typical guidelines
to be followed include: changing the engine oil, checking
proper fluid levels, tire rotations, wheel alignments.
Not following the recommend maintenance guidelines
may void your service contract please keep all records
of such repairs.
Manufacturer's Warranty: This is
the promise of your vehicle's manufacturer to repair
your vehicle for a specified period of time and/or
mileage. All factory-installed parts are covered against
defects and workmanship. Typical manufacturer warranties
are 3 years or 36,000 miles or 4 years or 50,000 miles.
Check your manufacturer's warranty manual for warranty
information.
Model: The model is the type of vehicle
that was made by the manufacturer.
N
New Vehicle: When discussing extended
warranties, the term new vehicle means an automobile
that is still covered by the original manufacturer's
“Bumper To Bumper” warranty. Not just
the manufacturer power train warranty.
O
Odometer Miles: The actual total
miles the Vehicle has traveled as viewed on the odometer.
This is the mileage stated on the odometer. Failure
of the odometer or removal will void the service contract.
Unless the change of the new working odometer has
been documented to the warranty company.
P
Plan Term: The amount of time in
years or the total mileage that your extended warranty
policy will protect your vehicle.
Plan Expiration: This is the date
or odometer mileage that policy will no longer be
in effect. For example, a 5 year / 100,000 mile extended
warranty, will expire 5 years from the date that you
enroll your vehicle or when the odometer reads 100,000
miles.
Power Train Coverage: A limited warranty
from the Warranty Company that covers certain parts
of your vehicles engine, transmission and drive train
assembly. If any of these components fail while the
vehicle is covered under the powertrains warranty,
the service contract is responsible for the repair.
Product Warranty: Product Warranties
are stated component plans that are associated with
particular products. These products can include an
oil, tablets, and battery contact protectors. The
products are intended to protect the parts of the
vehicle targeted by the products, and to reduce the
likelihood of a breakdown or failure.
Product warranties vary in their coverage.
Basic product warranty plans cover parts of the engine,
transmission, and water pump. More comprehensive plans
include near-complete coverage of the powertrain,
plus coverage of the fuel delivery and cooling system,
and major electrical components. As with all of the
plans we offer, complete coverage information and
full contracts for product warranties are posted on
our website.
The major advantages of product warranties
is that they are relatively inexpensive, typically
have no deductible, have excellent terms for mileage
and years, and are available for most any vehicle,
regardless of age or mileage.
In order to make the right decision
about product warranties, consumers should know that
the coverage of product warranties is generally less
than what is available in other plans. Further, almost
always, product warranties require the complete and
total failure of a part or component in order to qualify
as a legitimate claim. Product warranties may not
be canceled after 60 days.
In some states, only product warranties
are available. If your AA Auto Protection consultant
is offering you product warranties exclusively, then
that is either because the state in which you resides
permits only product warranties to be sold there,
or because other plans are not available for the vehicle.
Ask your consultant for details.
Before selecting a product warranty,
or any vehicle protection plan, please read and familiarize
yourself with the contract. Note the coverage, the
limits of liability, the requirements for an approved
claim, the validation period before a claim can be
submitted, and the cancellation policy of the contract-issuer.
For many customers, product warranties
are a good choice, because they provide coverage of
major components, with excellent terms, at budget-friendly
prices. But to know for sure whether a product warranty
is right for you, you’re invited to speak with
a professional vehicle protection plan consultant
at 888-222-4445.
R
Ratings: Check out
the A.M. Best's rating for insurers and re-insurers.
A.M. Best's ratings are widely recognized as the benchmark
for determining an institution's financial strength.
Reinsurance Company: The insurance
company that issues an insurance policy and guarantees
the obligations of the insurance company. A reinsurance
company is required only when a Risk Retention Group
insures your vehicle service contract.
Re-insurer: Reinsurance is an arrangement
between 2 or more insurance companies to spread out
the risk of an insurance contract. This is done so
that an unusually large loss from a policy does not
fall on a single company. The exact arrangement between
the warranty company, the insurer, and any re-insurers
varies from company to company, so always read your
contract carefully.
Repair Facility: An authorized licensed
repair facility located in the United States or Canada.
This includes, but is not limited to your dealership,
local mechanical facility or national repair facilities.
Rental Benefit: The amount you will
be reimbursed for actual expenses incurred for substitute
transportation while your vehicle is being repaired.
In the event that a mechanical breakdown of a covered
component requires labor in excess of 8 hours, you
are reimbursed up to $25.00 per day maximum 4 days.
Exclusions are delays caused by unavailability of
parts, shipping, or shop schedules.
Roadside Assistance: A program that
provides you with a toll-free telephone number to
call 24 hours a day 365 days a year. This is for assistance
when your vehicle breaks down or when there is a vehicle
emergency (towing, battery assistance, flat tire assistance,
emergency lock out, or fuel, oil, fluid and water
delivery)
S
Standard & Poor's:
Is one of the world's preeminent providers of credit
ratings, and for such globally recognized financial-market
indices as the S&P 500®. But that's only part
of the picture. They also provide a wide range of
other products and services designed to help individuals
and institutions around the world make better-informed
financial decisions with greater confidence. S&P
Search allows you to search for current S&P rating
information of any Insurance Provider.
Stated Component Coverage: A policy
that lists all the components and parts that are covered
by the extended warranty. If the component or part
is not listed, then it is not covered. And if a component
is listed on the contract they are covered.
T
Transferability: A vehicle having
an extended warranty can have the warranty transferred
to the new owner of the vehicle if the vehicle is
sold privately.
U
Used Vehicle: When discussing extended
warranties, the term used vehicle means an automobile
whose original manufacturer's warranty has expired.
This term has nothing to do with ownership of a vehicle.
V
Vehicle Identification Number (VIN):
Your Vehicle Identification Number (VIN) is a 17 digit
alphanumeric series, which describes the characteristics
of your vehicle. Each vehicle has a unique number.
It is located in several places. The most common are:
1. On the title to your vehicle
2. On your insurance card
3. On your registration card
4. On the driver-side dashboard of your vehicle.
W
Wear and Tear: When a part or component
has failed because it can no longer perform the function
for which it was designed solely because of its condition.
When the part has worn beyond the manufacturer's tolerances
allowed for that particular vehicle at the mileage
when the problem occurs, if it has received manufacturer's
recommended maintenance. It is very important to understand
the difference between "wear and tear" items
and parts that are considered normal maintenance that
can wear out. Normal maintenance items that usually
wear out are typically not covered under an extended
warranty program. Some examples of parts that wear
out that are not covered are brake pads and rotors,
brake shoes and drums, and manual clutches.
