What Is an Extended Auto Warranty?
While new vehicles come with a manufacturer's warranty, many consumers choose to purchase an extended auto warranty to cover the costs of repair and maintenance after their initial coverage has expired — or to supplement it from day one.
An extended warranty (also called a vehicle service contract) pays for mechanical breakdowns on covered parts, protecting you from unexpected repair bills that can easily exceed $2,000–$5,000. Coverage typically includes the engine, transmission, drivetrain, electrical systems, and more depending on the plan tier.
You can buy an extended auto warranty at any time, even after your original manufacturer's warranty has expired, and coverage is often transferable if you sell the vehicle.
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