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Glossary of Terms
ASE:
This is the abbreviation for the National Institute for Automotive Service Excellence. ASE certifies professional automotive technicians in various areas of repair expertise. A technician who has passed one or more tests is allowed to wear the ASE Blue Seal of Excellence on his uniform, and any repair facility that employs certified mechanics can display the ASE sign.
Administrator:
The Administrator is the company that pays for the work done on your car. They work with your repair facility to make sure your repairs are handled properly.
A.M. Best:
A Rating Report from the A.M. Best Company represents an independent opinion from the leading provider of insurer ratings of a company’s financial strength and ability to meet its obligations to policyholders. You can find their rating on the A.M. Best Web site: www.ambest.com.
Breakdown or Failure:
When a part fails to do what it was designed to do, that is considered a breakdown or failure. When the part is covered on your extended warranty policy, the part will be repaired or replaced.
Certified Vehicle:
A certified vehicle has been through a thorough inspection process. The inspection process varies from manufacturer to manufacturer. Manufacturers will certify a vehicle before sale and attach a limited powertrain warranty or factory warranty extension.
Normal Wear Items:
These are parts that are not covered under warranties because they wear out in the normal use of a car. They include such parts as batteries, tires, wiper blades, and manual transmission clutch plates.
Deductible:
The amount that you are responsible for to have your vehicle repaired. After paying your deductible, the balance of the repair bill is paid by your extended warranty administrator.
Exclusionary Warranty:
Also known as a “Bumper to Bumper” warranty. This is just the opposite of the stated component warranty. An exclusionary warranty will cover all items on a vehicle except those that are listed.
Extended Warranty:
This is the same as a Vehicle Service Contract. An extended warranty takes effect after the manufactures basic warranty expires and protects against mechanical and electrical failures and breakages.
In-Service Date:
This the date a vehicle was originally purchased as new and put into service.
Maintenance Guidelines:
These are the recommended maintenance items by the manufacturer of your vehicle to keep in tip top shape and keep the manufactures basic warranty in full effect. All of these requirements are outlined in your owner’s manual.
Manufacturer's Warranty (or Basic Warranty):
Every new vehicle comes with a standard auto warranty, covering all factory-installed parts against defects. Typical manufacturer’s auto warranties cover 3 years/36,000 miles, 4 years/50,000 miles or 5 years/60,000 miles.
Policy Underwriter:
Your Policy Underwriter is the party financially responsible for your repair. An underwriter backs the administrator and makes sure your policy and claims are properly enforced.
Powertrain Warranty:
A powertrain warranty is very limited and only covers your engine, transmission and sometimes your drivetrain components.
Rental Benefit:
This an allowance provided with your Extended Warranty that provides for a rental car while your car is being repaired.
Repair Facility:
This a place that you can go to have your vehicle repaired. It can be and dealership or an ASE certified repair facility.
Risk Retention Group or (RRG):
Some of National Auto Guardian's competitors’ administrators may be insured by companies chartered as Risk Retention Groups. These groups are thinly capitalized with little reserves to pay claims. They offer very little assurance that a claim will get paid should the administrator become insolvent. In fact, in many instances the ownership of the administrator and the risk retention insurer are one and the same. Therefore, if the administrator fails, there is little likelihood that the risk retention insurer will be around to pay claims as well. While these risk retention companies may be reinsured, the chance that a claim being paid within a reasonable length of time is highly unlikely, if at all. As these companies do not maintain the reserves that a licensed insurer may be required to carry, their administrators are able to charge premiums that may be substantially lower than ours. Be very suspect of significant differences in the cost of premiums. The age-old adage that “you get what you paid for” might never be more valid than in this case.
Roadside Assistance:
This program gives you emergency help any time of the day. If you have a flat tire, need a jump start, run out of gas, or even if you lock yourself out of the car, just call our toll free number and someone will be sent to help.
Salvage Title:
If a vehicle is stolen or badly damaged, an insurance company may declare it a total loss and give it a salvage title. These vehicles may not eligible for extended warranties.
Stated Component Policy (or Inclusionary Policy):
A stated component policy lists every component covered by your extended warranty. If a part is not listed, then it will not be covered.
Transferability:.
If you sell your vehicle to a private party, you can transfer your extended warranty with all of its benefits to the new owner. By having an extended warranty on your vehicle, it will make your vehicle more marketable and raises the value of your vehicle. If you trade your vehicle in to a dealer it may be cancelled at that time.
Trip Interruption Benefit:
This helps you if you are more than 100 miles from home and your car breaks down. If you need a hotel and meals, you will be reimbursed while waiting for your car to be repaired.
Vehicle Identification Number (VIN):
Your VIN is a 17-digit number unique to your vehicle. Your VIN can be found on the driver's side dashboard, a sticker inside the driver's side door, your title to your vehicle, your insurance card, or your registration card.
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