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An extended auto warranty is essentially an insurance
policy on a vehicle which shields the owner from
costly repairs. The owner agrees to a manageable
guaranteed loss up front against the possibility
of much larger expenses which may occur over the
life of the policy. Extended auto warranties cover
repairs and in some cases maintenance for a specified
period of time and are, in reality, service contracts
in that they are sold separately from the vehicle.
Although an extended warranty may
be bought with the purchased of a vehicle, it
can also be acquired at a later date. Considering
the sizable and ever-growing cost of most vehicle
repairs and labor costs, having an extended auto
warranty provides financial protection and peace
of mind.
For more information:
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