Aftermarket auto warranty, also known as extended warranty.  It can be purchased at the time of purchase of a vehicle. It is an insurance plan that provides services after the purchase when the manufacturer’s warranty ends. It saves people from incurring huge expenditure on the repair of their vehicles in case the vehicle breaks down and provides quick replacement of the damaged parts. A fixed amount of money is charged for all the repairs of the vehicle.

Various plans are offered that cover different parts. Plans such as powertrain coverage includes repairs or replacement of engine, transmissions and differential parts. These plans also include road side assistance which consists of tow service, refuelling, etc. Some of them offer payment of hotel bills and other contingent expenditures in case of dire straits. It also comes in low mileage plans which are suitable for people who seldom go for long distances.

Though a customer has to pay extra money to purchase such warranty, it adds to a peace of mind as a person can rely on it when his car brakes down in a stranded place. Vehicles involve huge investments and an additional expenditure on its maintenance safeguards the huge amount spent on it. The concept of aftermarket warranty saves money when viewed in terms of long run.