Warranty can be explained as a promise to repair or replace a product from its time of purchase until a certain period. There are two types of warranties offered when you purchase an automobile. Car warranties, in general, can be broadly divided into a regular warranty that is offered by the car manufacturer and an extended warranty which is an insurance plan purchased by paying a premium.

An extended warranty is a coverage for your vehicle that is offered by a third party through premiums as any other insurance plan. This extended warranty plan kicks in when the regular warranty offered by the manufacturer expires. The purchased plan may be bought either at the time of the car purchase, during the usage, or when the regular coverage expires, depending on the terms and conditions in the plan purchased. Having an extensive coverage plan for warranty can save thousands of dollars over time, be it for repairs or to buy another vehicle.

Some of the benefits of having extended car warranty programs are:

• Peace of mind
  Even if a potential quality problem leads to a vehicle breakdown after the manufacturer’s warranty period expires, it will not be attended to by the OEM (original equipment manufacturer). Driving such a vehicle can be dangerous. Hence, extended warranty plans give the peace of mind about the car’s safety along with no financial worries.
• Ease of finding repair support
  If the car breaks down in a place away from any main repair facility, towing support or finding the closest repair facility will be aided by these service providers.
• Conveyance allowance
  In case the car needs to be dropped at the service station overnight for any repairs, there are plans that even guarantee a rental car for you.
• Extensive parts coverage
  These plans usually cover various functional and non-functional parts of your car. In general, most plans cover steering components like steering gears, rack and hoses, parts related to the suspension system like the upper and lower control arms and the ball joints, and drive train parts like CV joints, wheel bearings, drive shafts, and transmission. It also covers several electrical components like the starter motor, alternator, and the electronic fuel injection along with the wiring harness.
• Engine parts coverage
  There may either be a comprehensive package that includes engine parts or one that is exclusive for engine system parts including the timing chain, oil, pump, water pump, intake and exhaust manifolds, etc.
• Air conditioning system
  The HVAC (Heating, ventilation, and air conditioning) system is an expensive part to repair and costs even more if your car is equipped with a separate AC system or automatic climate control. The HVAC warranty will cover the entire heating, ventilation and cooling system including the compressor, condenser, magnetic clutch, pulley, accumulator, and the evaporator.