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What is extended warranty? This article has the benefits for extended warranty information and how to get the right one for your car!

Your automobile is most likely your 2nd largest investment that you use on a day-to-day basis. After the manufacturer's warranty expires on your vehicle, you have nothing to protect yourself from expensive vehicle repairs. The right extended warranty will protect your investment and save you money.

Extended warranties, vehicle service contracts, and mechanical breakdown insurance are basically the same thing and we will refer to all of them as extended warranties. An Extended Warranty is basically a contract between you and the warranty provider that says if a part or component described on the policy breaks, or wears out in some cases, the warranty company pays to have it fixed. It is also important to know that extended warranties cost less the earlier you buy them. The cost for a good warranty rises as your vehicle ages and accrues mileage.

Most people buy their warranties from an Automobile Dealer. At the dealer there is not much choice or negotiating but lots of pressure. You could buy a warranty directly from a car dealer, but expect to pay 40%-60% more for the same coverage if you shop online.

Extended warranties can also include benefits such as free 24/7 roadside assistance for emergencies like lockouts, fuel and fluid delivery, battery jump, flat tire repair, and towing. Many also come with car rental reimbursement and travel interruption protection in case of a breakdown. A fully transferable extended warranty can also greatly increases the resale value of your vehicle.
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