What is an Automotive Extended Warranty or Vehicle Service Contract?

At the time of purchase, most new cars come with a warranty from the manufacturer, but those warranties often expire after a few years. Extended auto warranties or vehicle service contracts offer coverage for certain repairs. Additionally, ancillary products provide protection for out-of-pocket costs associated with maintaining a vehicle, such as dent and ding repair, tire and wheel damage, key fob replacement, lease wear and tear coverage, theft protection, etc.