Navigating the world of vehicle protection plans can be complex, especially with the industry-specific terminology involved. Veritas Global Protection Services aims to simplify this process for its customers. To help you better understand your vehicle protection plan and the associated terms, we’ve compiled a comprehensive glossary of key terms commonly used in the industry. This glossary is designed to provide you with valuable information so you can confidently make well-informed decisions about vehicle protection.
A
Administrator: The entity responsible for managing your vehicle protection plan, including processing claims, handling customer service, and ensuring the fulfillment of the contract’s terms. Veritas Global Protection Services often acts as the administrator for its plans.
Aftermarket Parts: Parts not made by the original equipment manufacturer (OEM) but are designed to function similarly. It is crucial to verify coverage as the use of aftermarket parts may impact the validity of your protection plan.
Agreement: The formal contract between you and the protection plan provider that outlines the terms, conditions, coverage, and exclusions of the plan.
B
Breakdown: A mechanical or electrical failure that prevents the vehicle from operating as designed. Coverage for breakdowns is a fundamental component of most vehicle protection plans.
Bumper-to-Bumper Coverage: A comprehensive coverage that protects nearly all vehicle components, with certain exceptions listed in the policy.
C
Claim: A policyholder can request the protection plan provider for payment or services covered under the plan’s terms. Filing a claim typically involves providing details of the breakdown or issue and submitting the necessary documentation.
Component: Any individual part or system of the vehicle, such as the engine, transmission, or air conditioning system. Protection plans often specify which components are covered.
Contract: Another term for the agreement or policy document details the coverage, terms, conditions, and exclusions of your vehicle protection plan.
Covered Part: A part of the vehicle is included under the protection plan. The agreement lists all the parts and systems covered.
D
Deductible: When a policyholder must pay an out-of-pocket amount before the protection plan begins to cover the remaining repair costs, the deductible can vary by plan.
Drivetrain: The drivetrain consists of various components that transfer power from the engine to the wheels. These components usually include the transmission, driveshaft, and differential. Many protection plans offer specific coverage for drivetrain components.
E
Exclusion: The protection plan does not cover specific conditions or components. To avoid any confusion, these are listed in the agreement.
Extended Warranty: Extended warranty plans offer coverage beyond the manufacturer’s warranty. It’s important to note that while Veritas Global Protection Services provides vehicle protection plans, they do not offer warranty plans.
F
Factory Warranty: The original warranty provided by the vehicle manufacturer, which covers repairs and defects for a specific period or mileage. Extended warranties begin after the factory warranty expires.
Fluid Checks: Regular maintenance checks for essential vehicle fluids, such as engine oil, coolant, brake fluid, and transmission fluid, are often required to maintain the protection plan’s validity.
G
Guaranteed Auto Protection (GAP): Insurance that covers the difference between the actual cash value of a vehicle and the balance still owed on the financing if the car is totaled or stolen.
H
High-Tech Component Coverage: Protection specifically covers advanced technological components in modern vehicles, such as navigation systems, infotainment systems, and advanced driver-assistance systems (ADAS).
I
In-Service Date: The date when the vehicle was first put into service is important for determining the start and end of the warranty and protection plan coverage periods.
Inspection: A thorough examination of the vehicle to assess its condition. Some protection plans require an inspection before coverage can begin.
L
Labor Costs: The expenses linked to the services carried out by mechanics or technicians to repair or replace a covered component. Many protection plans cover both parts and labor costs.
M
Manufacturer’s Warranty: See Factory Warranty.
Mechanical Breakdown Insurance (MBI): A type of insurance that covers major mechanical breakdowns. It is similar to an extended warranty but is regulated as insurance.
Mileage Limit: The agreement specifies the maximum number of miles to be driven before the protection plan expires.
O
OEM Parts: Original Equipment Manufacturer parts are made by the vehicle’s manufacturer. Using OEM parts can be important for maintaining the validity of some protection plans.
P
Policy: Another term for the agreement or contract detailing the terms of the vehicle protection plan.
Pre-Existing Condition: Any issue or defect present before the start of the protection plan coverage. These conditions are generally not covered by the plan.
R
Repair Facility: An authorized location where covered repairs can be performed. Veritas Global Protection Services has a network of authorized repair facilities.
Roadside Assistance: Services provided to help you when your vehicle is immobilized due to a breakdown. This can include towing, battery jump-starts, flat tire changes, and lockout assistance.
S
Scheduled Maintenance: The vehicle manufacturer recommends regularly scheduled services to keep the vehicle in good working condition. Following the maintenance schedule is often necessary to keep the protection plan valid.
Service Contract: Another term for an extended warranty detailing the coverage and terms.
Subrogation: The process by which an insurance company seeks reimbursement from the party responsible for a loss after the company has paid a claim.
T
Term: The duration of the protection plan coverage, typically specified in months or miles, whichever comes first.
Towing Coverage: A benefit covering the cost of towing your vehicle to an authorized repair facility in case of a breakdown.
U
Underwriting: The process by which the protection plan provider assesses the risk of insuring your vehicle and determines the terms of the coverage.
V
Vehicle Identification Number (VIN): A unique code assigned to every motor vehicle when it’s manufactured. The VIN is used to identify the vehicle in service records and protection plans.
Vehicle Service Contract: Another term for an extended warranty or protection plan that covers specific repairs and services beyond the factory warranty.
W
Wear and Tear: The natural and gradual deterioration of a vehicle’s components over time. Some protection plans cover wear and tear, while others do not.
Warranty: The assurance the manufacturer or a service contract provider provides that covers certain repairs and services for a specified period or mileage.
Conclusion
Understanding the terms associated with your vehicle protection plan is essential for maximizing coverage and ensuring you meet all requirements. This glossary of terms from Veritas Global Protection Services provides a clear understanding of the language used in protection plans, helping you navigate your coverage and maintain your vehicle effectively. By becoming familiar with these terms, you can effectively manage your protection plan and have peace of mind knowing that your vehicle is covered.
