When you buy a car or a consumer product like an electronic device, it includes a warranty provided by the manufacturer for a specific period of time. Warranty is a specific feature of the purchase but once it expires, you are on your own unless you purchase an extended service contract.
Extended service contract or extended warranty is a service contract or maintenance agreement offered to consumers in addition to the standard warranty that goes with new items. Extended warranties cost extra. The amount will be a percentage of the item’s retail price. New cars come with a warranty that covers repairs for a certain period of time and a certain number of miles; for example, 3 years and 36,000 miles. Generally, auto warranty does not cover vandalism or theft, dings or dents, road salt damage, environmental or natural disaster-related damages, car wash damage, and normal routine maintenance.
