There’s actually two types of extended warranties; one is called an exclusion, it’s commonly referred to as bumper to bumper because when you view the contract it will only list the items not covered. Typically those are regular maintenance items, oil changes, tires, batteries, insurance related issues, things along those lines. What makes it the best in the industry if it does not mention a part that will not be covered, then it will be covered under the contract.
All other contracts are called inclusion contracts. They will come with the same list of exclusions, however they will also come with a list of parts that are covered. If a part breaks and it’s specifically mentioned as being covered under the contract then the claim will be paid. If it’s not covered on the contract, naturally the claim will not be paid.
Listed under the inclusion contracts the first level beneath a bumper to bumper would be referred to as a very comprehensive program, beneath that is comprehensive, and the lowest level of coverage is the power trained coverage. A very comprehensive contract will list the parts, but it’s as close to an exclusion contract as you can possibly get, it’s usually reserved for vehicles that cannot get bumper to bumper coverage or exclusionary coverage and are beneath 100,000 miles on the odometer. Once a vehicle achieves 100,000 miles typically that level of coverage will no longer be available. Next level of coverage down would be a comprehensive program and then at about 120,000 miles the comprehensive program is likely to no longer be available and power trained which covers the engine and transmission would be the bottom level of coverage. Easy way to understand that is exclusion would be a “A,” very comprehensive next level down “B,” comprehensive “C,” and then power trained would be a “D” level of coverage.