New Car Warranty Terms - Part 3
Maintenance Guidelines
This is the normal, routine maintenance that is recommended by the manufacturer
of your vehicle to keep the vehicle in optimum condition. These include such
things as oil changes, tune-ups, checking fluid levels, tire rotations, wheel
alignments, belts, hoses and others as described in your owner's manual.
Manufacturer's Warranty
This is the standard warranty that every new vehicle sold comes with. All
factory-installed parts are covered against defects. 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 or visit our
Manufacturer's Warranty page.
Mechanical Breakdown Insurance (MBI)
A policy, contract, or agreement that undertakes to perform or provide repair or
replacement service, or indemnification for that service, for the operational
failure of a motor vehicle due to a defect in materials or skill of work or
normal wear and tear, and that is issued by an insurance company authorized to
do business in California.
A mechanical breakdown insurance policy (MBI) is a true insurance product. Like
personal auto or homeowners insurance, the MBI creates a direct relationship
between the vehicle owner and the insurance company. MBI coverages and premiums
are regulated by the California Department of Insurance, assuring a fair price
for the coverage is provided.
Likewise, administrative, underwriting, and claim
handling functions are subject to the review and control of the California
Department of Insurance. They would also be covered by the California State
Insurance Guarantee Fund providing a higher level of consumer protection over
other types of contracts, including those that may be issued at the dealership
or from a third party company.
Power Train Warranty
A very limited warranty from the manufacturer that covers certain parts of your
vehicle's engine, transmission and drive train assembly. If any of these
components fail while the vehicle is covered under the powertrain warranty, the
manufacturer is responsible for the repair. These warranties cover only about
25% of the vehicle.
Rebuilt Title
See salvage title.
Repair Facility
An authorized licensed repair facility located in the United States or Canada.
This includes your dealership, local mechanic 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.
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Terms - Part 2 Next:
New Car Warranty Terms - Part 4