Extended Vehicle Warranties provide comparable coverage to the original warranty, but not exact, and usually have exclusions based on mileage. Warranties are only sold with the purchase of a new vehicle and are pegged to the retail price of the vehicle itself. Legally, only the original manufacturer can “extend” a warranty, so anything else is technically a vehicle service contract.
Vehicle Service Contracts are sometimes known as aftermarket warranties, auto service contracts for cars, or extended car warranties, although they are not actual warranties. A vehicle service contract provides coverage for costly repairs after the manufacturer’s warranty expires and is a direct agreement between you and the provider. Different plans are available with varying degrees of coverage and for different prices that are not tied to the retail price of your vehicle.