What are the types of extended warranties/auto service contracts?

There are two main types of extended warranties; extended warranties that cover beyond the standard manufacturer warranty and aftermarket extended warranties that are backed by a company independent from the car maker.

What is the difference between these two types of extended warranties?

Typically, the manufacturer extended warranty is only offered at the time a vehicle is purchased. The manufacturer warranty also requires a vehicle to be a brand new model or a Certified Pre-owned model that is being sold by the same manufacturer who makes the particular model. Aftermarket extended warranties may offer flexibility – covering many makes, models, and model years of vehicles. Aftermarket warranties may also be added after the vehicle has been purchased and driven for a time. The coverage offered between these two options may also differ. With today’s technology, vehicles have Navigation, DVD Players, Power Sliding Doors, and other gadgets. Not all warranties will cover these items. Typically, the manufacturer warranty will cover these items if installed at the factory for limited repairs, whereas aftermarket warranties usually will not.