The popularity of the aftermarket auto warranty has grown mainly because of more and more people are buying used cars which do not come with a warranty. The aftermarket auto warranty, also known as the extended auto warranty, is a type of contract service (you pay for this warranty coverage as opposed to any other type of warranty that you are entitled to with the purchase of a vehicle) which is often used in combination with either the manufacturer’s warranty or the used car warranty to provide additional coverage for the vehicle in question. 

Usually additional coverage is not required for the new car which is fully covered by its manufacturer’s warranty.  In exceptional circumstances however, the owner may decide that he wants his coverage to be extended for a certain amount of years or miles after that allocated with his manufacturer’s warranty.  In such a case, he opts for the aftermarket auto warranty to extend the warranty coverage. 

With the used car, an aftermarket auto warranty is much more desirable since only limited coverage and mileage allowance are allotted per warranty.  With the aftermarket auto warranty, the vehicle owner can benefit from additional coverage for his vehicle according to his warranty contract.  With the used vehicle that has no coverage at all, even the aftermarket auto warranty can be used to provide limited coverage.