Auto Warranty Glossary

Here! Find out auto-warranty terms or policies of American dream auto-protect.

Most popular definitions

A new car comes with an all-encompassing warranty from the manufacturer known as a bumper-to-bumper warranty. The warranty usually only covers the vehicle for 36 months or 36,000 miles and covers any defects or breakdowns that may occur with the car's mechanical or electrical components. Additional protection for your vehicle is available from American Dream Auto-Protect in the form of auto protection plans and maintenance coverage after the manufacturer's bumper-to-bumper warranty has ended.

When a car needs repairs, the owner submits a claim to the company handling their vehicle service contract. With American Dream Auto Protect, you must take your car to a certified repair shop or an ASE-certified mechanic, get our staff's approval for the repairs, and we'll get you back on the road. There could be a deductible associated with your policy. Find a local auto repair shop through our collaboration with the Repair Pal network.

The most comprehensive form of auto insurance is called an "exclusionary policy." In the "exclusions" section of these plans, you can find a list of parts or components not covered by your insurance. Various exclusionary coverage options are available in the American dream auto-protect plans.

All Definitions

A.M. Best provides the customer with analysis and ratings of insurance firms. An insurance firm will support any trustworthy warranty or auto protection plan administrator. Check out A.M. Best's website to learn more about their rankings.

The administrator of a vehicle service contract is the party responsible for carrying out the terms and conditions of the agreement. In short, the administrator is the company that pays for your car's treatment at the repair shop. They will coordinate with your mechanic to properly process your claim and prepare your car for safe road travel. American Dream Auto Protect handles most of our vehicle security programs directly, eliminating the mediators and preventing our customers from being hassled. From the time you request an estimate until you file a claim, we will treat you like royalty to get you back behind the wheel as soon as possible after an accident.

Certification as an Automotive Service Excellence (ASE) technician is given to those who demonstrate proficiency and merit in the field and meet the standards set by the National Institute for Automotive Service Excellence (ASE). The ASE accreditation process does not single out any specific auto repair shops. You can trust that all required repairs will be completed under your automobile service contract conditions. Similarly, these will be carried out by qualified professionals because American Dream Auto Protect only hires ASE-Certified mechanics to operate your automobile.

Manufacturers of the new car provide an auto warranty to the customer when they purchase it from the dealership. Most cars have two different manufacturer warranties. (1) A standard warranty, often known as bumper-to-bumper, protects you against mechanical breakdowns and faulty construction in your car. (2) In addition,  if you experience any mechanical issues—like with the engine or the transmission—you're covered by a more extended powertrain warranty.
Powertrain warranties usually last for five years or 100,000 miles, as opposed to the three years or 36,000 miles covered by the standard warranty. If you need auto protection plans or maintenance coverage after the manufacturer's expired warranty, American Dream Auto Protect is here to provide an auto warranty.

A vehicle part is said to be "breakdown" if it no longer performs the function for which it was designed and installed. You can count on American Dream Auto-Protect to cover regular maintenance and mechanical breakdowns. With American Dream Auto-Protect, you'll never again need to stress about how to pay for your car's scheduled maintenance or covered repairs.

A new car comes with an all-encompassing warranty from the manufacturer known as a bumper-to-bumper warranty. The warranty usually only covers the vehicle for 36 months or 36,000 miles and covers any defects or breakdowns that may occur with the car's mechanical or electrical components. Additional protection for your vehicle is available from American Dream Auto-Protect in the form of auto protection plans and maintenance coverage after the manufacturer's bumper-to-bumper warranty has ended.

Maintaining your car includes regular checks, testing, and fixes to ensure the vehicle is in top shape. All sorts of repairs, from simple oil changes to more involved ones like new brake pads or spark plugs, are included in this category. Routine maintenance is essential to ensure the continued reliability and safety of your vehicle. You can also use it to spot problems before they get worse and cost you more money.

The term "car repair" describes fixing a vehicle that has experienced some sort of mechanical or electrical problem. To ensure the vehicle's safe and efficient operation, it must be inspected, diagnosed, and fixed. Repairs can range from minor adjustments like replacing a burned-out headlight bulb or patching a flat tire to major overhauls like installing a brand-new engine or transmission. Having an auto protection plan can help you save money on potentially expensive automobile repairs and provide you with roadside assistance if your car ever breaks down.

A manufacturer-certified vehicle has passed a quality inspection at an authorized franchise dealership. When a used automobile passes the manufacturer's certification process, the company typically extends the time and mileage of the powertrain and bumper-to-bumper warranties in preparation for sale or lease.

A red or amber warning light is a check engine light on your car's dashboard that indicates an issue with the vehicle. Depending on the severity of the noise, it could indicate anything as simple as a loose gas cap or as costly as an issue with the engine. If your car's "check engine light" ever comes on, you need to get it to a certified mechanic immediately. The service center's technicians will scan your car's onboard diagnostic (OBD) system to assess the issue's nature and the damage's specific location. A car protection plan could be helpful if your automobile ever develops mechanical problems or breaks down. Find more about the many insurance plans and pick one that fits your budget.

When a car needs repairs, the owner submits a claim to the company handling their vehicle service contract. With American dream auto protect, you must take your car to a certified repair shop or an ASE-certified mechanic, get our staff's approval for the repairs, and we'll get you back on the road. There could be a deductible associated with your policy. Find a local auto repair shop through our collaboration with the Repair Pal network.

It applies to any parts and equipment specified in your vehicle service contract's coverage and terms. In the context of a "stated component policy," this term designates the items explicitly listed as being covered. The term "inclusionary policy" describes a policy that covers everything except for the items listed in the policy's exclusions. The covered aspects of your coverage should be thoroughly studied. American dream auto-protect offers a range of auto-protection policies, from the most fundamental to those with no coverage gaps.

It is the sum that the vehicle owner is responsible for paying for a covered repair. After the deductible is reached, your auto service contract will cover the remainder of the authorized repair cost. You can choose from various deductible amounts or opt for a no-deductible policy when purchasing American Dream Auto Protect insurance.

Components of a vehicle's drive train are responsible for producing power and enabling the car to move forward. The transmission, driveshaft, transfer case, and differentials are all examples of such parts. Depending on your budget, you can choose from several different American dream auto-protect policies.

You may get a rough idea of how much money it will cost to fix your car by getting an estimate. An estimate is usually given to the automobile owner after the mechanic or auto body shop has examined the vehicle and determined the necessary repairs. Estimates often include not just the price of labor but also the price of any required replacement parts. The cost to repair a vehicle can vary widely, depending not only on the nature of the damage but also on the type and model of the vehicle.

The most comprehensive form of auto insurance is called an "exclusionary policy." In the "exclusions" section of these plans, you can find a list of parts or components not covered by your insurance. Various exclusionary coverage options are available in the American dream auto-protect plans.

An extended auto warranty protects your car from mechanical failures and breakdowns after the original warranty has expired. Your contract's specified repairs are the ones that are covered under your extended warranty.
Like extended warranties, auto protection policies are helpful when the initial manufacturer's warranty expires. The annual maintenance and repair expenditures for your vehicle, up to $3,500, are covered by the American dream auto-protect plan.

The term "grey market" refers to the sale of automobiles not initially intended for the American market. Vehicles that don't adhere to the standards and guidelines established in the United States aren't typically protected by auto protection plans or vehicle maintenance contracts. They rarely come with a guarantee from the manufacturer.

A policy that includes a list of all of the components that are covered by your extended warranty is called an inclusionary policy. If an element does not appear on the list, it is not included in the coverage.

It refers to the manufacturer that produces your brand-new or pre-owned automobiles, such as Honda, BMW, Ford, or Chevrolet.

When you buy a brand-new car, you can purchase a warranty from the factory or the manufacturer. Auto warranties typically cover the vehicle for three years or 36,000 miles.

Your vehicle's "model" refers to the particular model of automobile that the manufacturer produces. For instance, Honda's Civic is a model name for one of the company's automobiles.

Your car's powertrain components, including the engine, transmission, transfer case, and differentials, are the only ones covered by this powertrain policy.

This situation can affect your vehicle's mechanical condition before the contract is issued or before the waiting period ends.

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