What is the extended car warranty?

An extended warranty, also known as a vehicle service contract, is an optional plan that you can purchase to help you pay the cost of certain repairs your vehicle may need while you have it. It usually starts when the manufacturer's warranty expires, but sometimes the two overlap. An extended auto warranty is a service contract that extends the coverage of the manufacturer's warranty for repair or replacement of parts. Buying one usually extends the life of the coverage provided by the vehicle's factory warranty, but it's not always worth the price.

An extended car warranty is a service contract that covers car repairs after the factory auto warranty expires. Drivers can purchase aftermarket auto warranty coverage from vehicle manufacturers or from the best car extended warranty companies on the market. An extended car warranty works to help protect drivers after the factory warranty ends. However, according to the definition of the Vehicle Protection Association, an extended car warranty should be referred to as a vehicle service contract or vehicle protection plan.

Extended warranties are extensions of the coverage provided by a standard warranty, such as a manufacturer's warranty or home warranty. Often referred to as service agreements, service contracts, protection plans, or service plans, extended warranties cover the bill for repair costs after the factory warranty expires. You can purchase extended warranties for most major appliances, such as refrigerators or washing machines, as well as new and used vehicles. It's also worth noting that the AAA Vehicle Protection Plan is technically a vehicle service plan, which offers the same coverage as an extended warranty.

A vehicle service contract, commonly referred to as an extended warranty for car owners, is an optional protection plan you can purchase to help cover repair costs. On the other hand, drivers can purchase extended warranties from AAA and Allstate, or mechanical breakdown insurance from insurers such as Geico and USAA. If you plan to keep your car beyond the manufacturer's warranty expiration, buying an extended warranty can give you peace of mind in the future. While buying an extended car warranty is common when you buy a new car, you can usually get a service contract at any time before the warranty expires.

Purchasing an extended warranty for your vehicle offers additional benefits and protections that don't always come with standard warranties. Although Geico does not have an extended warranty plan, it does sell mechanical breakdown insurance, which is similar to an extended warranty and covers repairs to all mechanical parts of the vehicle. But for most drivers, extended car warranties are not used, so the potential benefits are not enough to justify the initial cost. All that matters is the lower price when purchasing extended vehicle coverage in the form of a vehicle service contract.

If you end up buying an extended warranty, look for a reputable manufacturer, dealer or independent supplier that offers extended auto warranties. Yes, most extended warranties are designed for used vehicles because new cars are covered by an initial factory or dealer warranty. While extended guarantees seem like a good idea in theory, such additional protection can be costly. If you plan to own your vehicle after the factory warranty expiration date, an extended warranty may be a smart choice.


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