New Car Warranty Terms - Part 2
Deductible
The amount that you must pay the repair facility for work when vehicle is being
repaired. Many plans are offered with a zero deductible option.
Drivetrain warranty
See powertrain warranty.
Emissions Warranties
The Federal Emissions Warranty guidelines are based on federal regulations and
apply to vehicles in all 50 states. Vehicles are covered by two types of
emissions control system warranty, "Emission Defect Warranty" and "Emissions
Performance Warranty".
Depending on the state you live in, the Performance Warranty is for 3
years/50,000 miles.
The Defect Warranty is generally consistent with the manufacturer's
bumper-to-bumper warranty with certain parts (catalytic converter and electronic
emissions controls (PCM) for up to 8 years/80,000 miles. Please refer to your
owner's manual for your exact coverage.
Extended Warranty
A policy which protects the car owner against mechanical failures and
breakdowns. Extended warranties are often referred to as Vehicle Service
Contracts. The warranty will pay for 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. Most similar to new car
warranty.
Gray Market Vehicle
A vehicle not manufactured for sale in the U.S. They often do not meet U.S.
standards and carry no manufacturer warranty. These vehicles are typically
ineligible for extended warranties.
Inclusionary Policy
A policy that lists 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.
Insurance Company
The insurance company that issues an insurance policy and guarantees the
obligations of the administrator. (See also A.M. Best)
Lemon Law
The general definition of a Lemon Law vehicle: A vehicle with (a) major,
repeated problem(s) that has been repurchased by, or had its purchase price
renegotiated with, the manufacturer. The state then earmarks these as Lemon Law
or Buyback vehicles. These vehicles are ineligible for coverage.
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New Car Warranty Terms - Part 3