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Car Dealer Extended Auto Warranty Claim Coverage 101

What is an extended auto warranty?

An extended auto warranty is a contract offered by a car dealer. The warranty extends the new car factory warranty coverage for a longer period of time.

What type of auto protection plan can I purchase after I buy my car?

A vehicle service contract can be purchased separately and after the sale of a vehicle.

Often incorrectly called an "extended auto warranty" or "auto warranty" offered by motor vehicle manufacturers, vehicle service contracts are sold separately and can be purchased at any time. These auto protection plans frequently cover the cost of expensive car repairs.

The level of coverage for auto repairs depends on the terms and conditions of the consumer's purchased plan. Additional vehicle protection coverage - including emergency roadside assistance, rental car reimbursement, or trip interruption reimbursement - may also be available with the purchase of a vehicle service contract.

Extended Auto Warranty, Auto Warranty, Vehicle Service Contract

What's the difference?

The difference among the three is subtle but important:

  1. An extended auto warranty is offered by a car dealer to extend coverage of the new car factory warranty
  2. An auto warranty is provided by a motor vehicle manufacturer and included with the original vehicle purchase
  3. A vehicle service contract is purchased separately, covers expensive vehicle repairs, and can be bought at any time

What's the same?

The similarity among the three is also important:

  1. Vehicle component coverage is contract-specific
  2. Routine maintenance of the vehicle must be properly and regularly performed for coverage to apply
  3. Coverage excludes benefits for damage caused by a lack of recommended vehicle maintenance

  Vehicle Maintenance Tip!  Refer to your owner's manual for the auto manufacturer's vehicle maintenance recommendations.