Glossary

Consumable Items

Refers to any items not generally covered by a vehicle warranty because they are frequently replaced as part of normal maintenance. Examples of consumables includes but is not limited to: wiper blades, tires, transmission fluid, air filters, etc.

Deductible

This is essentially any portion of the extended warranty plan that you must pay out-of-pocket for any repair. Be sure to read the fine print because some have annual deductibles, per-visit deductibles, etc.

Drive Train

Refers to the mechanical system and main components that actually transmit power from the engine to the tires. Also known as the Power Train, major components include: Transmission, running belt, drive belt, and motor.

Extended Warranty

An extended warranty refers to any service contract that is in effect past the expiration date of the original manufacturer. You can purchase extended warranties in some cases from the original manufacturer or from 3rd party extended warranty providers like those reviewed on our site.

Exclusionary Coverage

Exclusionary coverage refers to extended warranty plans that list their coverage by naming the items NOT covered by the plan. This is standard on higher end extended warranties because it is much easier to list the few things not covered than to list the 1,000’s that are.

Named Component Coverage

Common to most lower end extended warranties, this refers to plans that list the things that ARE covered by the plan—so if it isn’t named, it isn’t covered. This is typical on lower end warranties because it allows them to avoid paying for repairs and parts not listed on the coverage but routinely covered on exclusionary coverage plans.

Transferability

Refers to policies that can be transferred by the original purchaser to the buyer of the vehicle if policy is still active. However, this option is not available with all plans so be sure to ask because an extended warranty can significantly increase the resale value of a vehicle.