A
| C | D | E
| G | 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.
C
Cancellation: Typical
cancellation clauses of an extended service contract 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 service contract. 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 Service Contract: 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 service contract will pay for your vehicle's
covered repairs after the manufacturer's warranty
has expired.
Exclusionary Policy: The most comprehensive
extended service contract 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 service contract. If
a part or component is not listed, then it is covered
under an exclusionary policy.
G
Grace Period: A grace period is a
certain number of days and miles that must expire
before the first claim can me made. A grace period
is mainly for confirmation that the vehicle registered
does not have any pre existing conditions and the
purchaser of the policy is not attempting any type
of insurance fraud.
I
Inclusionary Policy: or also called
“Stated Component Coverage” Policies that
list the components and parts that are covered by
the extended service contract. 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-service contract 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 service contract
companies contract with another company to insure
their obligations for a service contract. For example,
if a service contract 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 service contract 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
service contracts, 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 service contract company.
P
Plan Term: The amount of time in
years or the total mileage that your extended service contract
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
service contract, 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 service
contract from the Service Contract 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
service contract, the service contract is responsible for
the repair.
Product Warranty: Product Warranties
are stated component plans that are associated with
particular products that come with the plan. That
is, 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.
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 service contract 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
Service Contract: A
vehicle service contract is a legally-binding compact
in which one party agrees to pay for the approved
vehicle repairs of the other party, in return for
a set payment. Service contracts of all kinds are
commonly called "extended warranties" because,
in many cases, the coverage is similar to the original
warranty offered by the manufacturer. However, levels
of coverage can vary. (Compare to "Warranty")
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 service contract. 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 service contract can have the service contract transferred
to the new owner of the vehicle if the vehicle is
sold privately.
U
Used Vehicle: When discussing extended
service contracts, 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
Validation Period: A validation period
is a certain number of days and miles that must expire
before the first claim can me made. A validation period
is mainly for confirmation that the vehicle registered
does not have any pre existing conditions and the
purchaser of the policy is not attempting any type
of insurance fraud.
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.
Vehicle Service Contract:
A vehicle service contract is a legally-binding compact
in which one party agrees to pay for the approved
vehicle repairs of the other party, in return for
a set payment. Service contracts of all kinds are
commonly called "extended warranties" because,
in many cases, the coverage is similar to the original
warranty offered by the manufacturer. However, levels
of coverage can vary. (Compare to "Warranty")
W
Warranty: A warranty is a promise
by a manufacturer of a given product to repair or
replace the product within a specified time period,
and according to specific terms and conditions. A
warranty cannot be offered on a product by an entity
other than the manufacture. (Compare to "Vehicle
Service Contract")
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 service contract
program. Some examples of parts that wear out that
are not covered are brake pads and rotors, brake shoes
and drums, and manual clutches.
