Administrator:
When referring to extended vehicle warranties and service contracts, this is the company or people that will be responsible for the day-to-day operations necessary to fulfill the warranty or contract agreement.

Claims Reserve Accounts:
These are the monetary funds that a vehicle warranty provider sets aside for the payment of current and future repair claims. This fund is a vital component to the stability of a provider as it indicates the company's ability to pay claims in a fair and timely manner. In addition Premier’s RAC plans are reinsured through an A.M. BEST A RATED INSURANCE COMPANY .

Consumable Items:
Items that are not typically covered by a vehicle warranty due to the intended nature of these items to be frequently replaced. These include, but are not limited to, oil filters, windshield wiper blades, power steering fluid, transmission fluid, tires, air filters, and the like. 

Deductible:
The portion of any warranty plan service contract, or insurance plan that the member must pay out-of-pocket as part of any repair. Premier only offers extended warranty plans with a $0 dollar deductible. There is no deductible even if there are multiple repairs. 

Drive Train:
This is the mechanical system that transmits power from one place to another. The drive train (also called the powertrain) includes the running belt, drive belt, rollers, and motor. A car's transmission is part of the drive train because it transfers engine power to the wheels. 

Extended Warranty:
Any warranty or service contract that is in effect past the expiration date of the original manufacturer. Extended warranties can be offered by the original manufacturer or by a
third-party extended vehicle warranty provider. 

In-Service Date:
This is the date when a vehicle is placed into operating service. Typically this date is defined
by the date the vehicle was first purchased and driven off the lot. 

Lemon Law:
In order to protect consumers from vehicles that are shown to be consistently defective or more-prone-than-usual to breakdown, several States have enacted "Lemon Laws" that allow the consumer to return the vehicle to the manufacturer and receive a full or partial refund or
a similar non-defective vehicle as long as the "lemon" vehicle meets certain requirements. 

Maintenance Guidelines:
These are the specifications set forth by each manufacturer on the proper care and maintenance for a particular vehicle. These include recommendations on fuel grade, oil weight, tire pressure, and dates or mileage for regular tune ups or engine maintenance. These guidelines can vary widely from vehicle to vehicle and are the responsibility of the vehicle owner to know/abide by. An improperly maintained vehicle is grounds for a warranty company to deny claims. Make sure your vehicle is properly maintained at all times .

Manufacturer Warranty:
Also known as the original vehicle warranty, this is typically a bumper-to-bumper warranty
in which the manufacturer pays for the cost of any covered repair or replacement. These warranties are typically only valid at dealer or manufacturer service centers. 

Powertrain Warranty:
This type of warranty protects vehicle owners from the expense associated with a repair or replacement of the main mechanical systems that power the vehicle . Manufacturers often offer a powertrain warranty in addition to a manufacturer warranty. In some cases, the powertrain warranty is valid for a greater period of time or mileage than the manufacturer warranty. Premier is able to offer great comprehensive coverage for what many companies charge for a basic powertrain warranty.

Rebuilt Title:
The type of title granted to a vehicle that has been restored, rebuilt, or reconditioned from a vehicle that was once considered a salvage vehicle or that was inoperable. Despite their appearance, these vehicles are not new vehicles, or even standard used vehicles. Premier does not provide coverage for these vehicles. 

Recall:
When a part or component of a vehicle is found to be widely defective or dangerous, the manufacturer will often issue a statement of recall. In these situations, vehicle owners are entitled to free repair or replacement of the named part or component if their vehicles fall within the spectrum of affected vehicles. Premier will notify all policy holders of recalls whenever we are contacted by the manufacturers .

Repair Facility:
Any ASE-certified mechanic, auto dealer service center, national chain service center, or other auto maintenance facility with certified mechanics. Premier’s RAC plan allows you to have your vehicle repaired at any of these locations - with payments made directly, so our policy holders aren’t waiting for reimbursement .

Rental Benefit:
An allowance provided as part of some extended car warranty plans (like Premier’s RAC plan) that either pays for or reimburses a covered vehicle for rental car coverage based on
the time needed for the repairs. 

Roadside Assistance:
An additional benefit offered as part of some extended vehicle warranty plans (like Premier’s RAC plan) that gives covered members access to towing and other automobile services of an urgent nature.

Salvage Title:
This is the type of title granted to a vehicle that has been damaged to such extent that it has
lost a significant amount of its previous market value. Premier does not provide coverage for these vehicles. 

Vehicle Identification Number (VIN):
All vehicles are assigned a VIN when they are manufactured. They are used to uniquely identify all vehicles. VINs are recorded in accidents, insurance records, and when work is done on a vehicle by a body shop, dealership or mechanic. 

Wear-and-Tear:
Wear-and-Tear coverage provides coverage for items that fail due to wear and tear within manufacturers guidelines. Many companies do not provide this type of coverage (Premier’s RAC plan) does provide wear and tear coverage outlined in all of our plans.