(1) "Incidental costs" means expenses incurred by the warranty holder that concern the failure of the vehicle protection product and that are specified in the vehicle protection product warranty. Incidental costs may include, without limitation, insurance policy deductibles, rental vehicle charges, the difference between the actual value of the stolen vehicle at the time of theft and the cost of a replacement vehicle, sales taxes, registration fees, transaction fees, and mechanical inspection fees.

(2) "Vehicle protection product" means a vehicle protection device, system, or service that:

(a) Is installed on or applied to a vehicle;

(b) Is designed to prevent loss or damage to a vehicle from a specific cause;

(c) Includes a written warranty by a warrantor stating that, if the vehicle protection product fails to prevent loss or damage to a vehicle from a specific cause, the warranty holder shall be paid specified incidental costs by the warrantor as a result of such failure; and

(d) Comes with a warranty reimbursement insurance policy covering the warrantor's liability from such product.

(3) "Vehicle protection product warrantor" or "warrantor" means a person who is contractually obligated to the warranty holder under the terms of the vehicle protection product warranty agreement. "Warrantor" does not include an authorized insurer.

(4) "Warranty" means an express warranty and shall not include an insurance policy.

(5) "Warranty reimbursement insurance policy" means a policy of insurance issued to the vehicle protection product warrantor to pay, on behalf of the warrantor, all covered contractual obligations incurred by the warrantor under the vehicle protection product warranty.