Simply put, an extended auto warranty is a vehicle service agreement. It covers the financial costs for car repairs and replacement parts after the manufacturer’s warranty expires. The extended auto warranty provider will cover the vehicle’s repair costs for a low monthly payment. This financial safety net gives used car buyers peace of mind that they will not have to pay for expensive car repairs out of pocket.  

Car owners can buy an extended car warranty through a dealership or third-party provider. However, only a car manufacturer can technically “extend” the original factory warranty. An extended warranty is more accurately known as a vehicle service contract (VSC) or an auto protection plan. 

Warranty companies offer various levels of extended warranty coverage. This ranges from comprehensive coverage, similar to a bumper-to-bumper warranty, to a more limited powertrain warranty. Each plan covers different costs. Therefore it is essential to read the fine print. Knowing exactly what is covered is necessary before signing an extended warranty plan agreement. 

It’s important to shop around when buying an extended warranty. The cost of an extended auto warranty varies. Pricing depends on the provider and factors such as the level of coverage and the vehicle’s make and model. Compare extended auto warranty prices to get the best vehicle coverage. Look for an extended vehicle warranty that fits your budget and driving style. 

Many third-party providers offer bonus benefits with their auto extended warranty costs. These include 24/7 roadside assistance and towing, rental car reimbursement, and the ability to choose your ASE Certified repair shop. These benefits come at no extra cost.