Extended warranty is an additional warranty on a product after the actual warranty has expired. It can be purchased from the dealer of the product or even as an afterthought.

Whenever a consumer buys a product, he assumes that the product is fit to use. He trusts the features and functions as described or demonstrated by the seller, depending upon the type of the product. The buyer offers a warranty, promising to either fix or replace a faulty product.

Extended warranties can cost up to fifty percent of the purchase price. This again depends on the type of the product.

This warranty is only for a specific limit of time from the date of purchase. Cars often come with a "3 years or 36,000 miles" warranty. Other consumer durables too generally do not have a warranty of more than a year.

Many companies offer extended warranties on cars. In case of breakdowns and heavy repairs, they come in handy. Few companies even offer coverage against wear and tear of the parts of the car. However, different companies have different clauses in their warranties. Some companies prefer to exclude this coverage.

Dealers sell the extended warranty as insurance policy, which means they will replace the product in case of a breakdown after the standard warranty expires. In cases where wear and tear is not covered, this may not be worth the extra cost. The company may simply not pay the claim, citing the reason of breakdown as improper maintenance or regular wear.

Quotes for purchasing extended warranty can be found on the Internet on the websites of many leading companies. Some of them are warrantydirect.com, carbuyingtips.com and autowarranties.com.