Extended Auto Warranty
An extended auto warranty is a service contract between the owner of a vehicle and an auto warranty provider. All new cars come with a warranty that cover repairs for a certain period of time and a certain number of miles, such as 3 years and 36,000 miles. When that time period runs out, consumers have the option to purchase an extended auto warranty. This warranty is not an extension of the terms and coverages provided in the original car manufacturer’s warranty. Rather, it is a new contract provided a third-party provider.
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