What is an extended auto warranty?

Modified on Thu, 23 Feb 2023 at 11:07 AM

Extended car warranty 101 American Auto Shield customer service claims adjuster


Extended auto warranty 101


An extended auto warranty is a contract offered by a new car dealer to wrap the new car factory warranty and extend beyond it. 


A Vehicle Service Contract, commonly but incorrectly referred to as an “extended auto warranty” or "auto warranty", is sold outside of a new vehicle purchase. 


The difference among the three is subtle but important: 

  1. Auto warranty: Provided by motor vehicle manufacturers and included with the original vehicle purchase
  2. Extended auto warranty: Offered by car dealers
  3. Vehicle service contract: Must be purchased separately and can be purchased at any time

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select atleast one of the reasons

Feedback sent

We appreciate your effort and will try to fix the article