Extended warranties and service contracts are not true warranties. They are repair or maintenance contracts that you must pay extra to get. In deciding whether to pay for an extended warranty or service contract you need to consider several things. You need to know exactly how much the contract will cost you. The total cost of the service contract usually includes a deductible amount that will not be covered.
Some contracts require a deductible amount to be paid for every repair attempt.
Others require the deductible to be paid for each unrelated repair. Once you know the cost, you need to find out what the service contract covers. To make this determination you will need to check it against the manufacturer's warranty. Look at exactly what the service contract covers. Some service contracts only cover major parts like the engine and the power train.