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Aftermarket Warranty

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A consumer or dealer commonly refers to any vehicle protection plan (a.k.a. extended auto warranty) not offered, sponsored or endorsed by the manufacturer as an aftermarket warranty. An aftermarket warranty can be equal to or of greater value to a comparable factory backed extended warranty. However, be careful in reviewing the actual vehicle service contract for the specific coverage the plan offers. A warranty administrator other than the manufacturer of a vehicle will offer an aftermarket warranty. These warranties can be purchased through local dealers, banks, credit unions, insurance agencies, direct marketers and local repair facilities.

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Car Safety

Car safety has more to do with safety ratings of the vehicle. Motor vehicle crashes are one of the leading causes of death in the U.S.. According to the Center for Disease Control,  in 2009 more than 2.3 million adult drivers and passengers received emergency room treatment for injuries suffered in car crashes. The economic impact of vehicle crashes is also notable. The CDC noted that  the lifetime costs of crash-related deaths and injuries among drivers and passengers were $70 billion in 2005. 

Factory Backed Extended Warranty vs Aftermarket Warranty: The Difference Between the Two

When purchasing an extended auto warranty, or extended service contract, there are two types of warranties that you may come across: factory backed extended warranty and aftermarket warranty. For many consumers, they might think they are getting a factory backed warranty, but instead get an aftermarket warranty. In many ways they are similar, but there are different in certain ways as well. Listed below are a comparison of the two that will make you more informed as a consumer.