An extended warranty, sometimes called a service agreement, a service contract, or a maintenance agreement, is a prolonged warranty offered to consumers. The extended warranty may be offered by the warranty administrator, the retailer or the manufacturer. These warranties extend the period of the manufacturer's standard warranty. For example, a computer's two-year extended warranty covers two years past the manufacturer's one year warranty for a total of three years coverage. Extended warranties cost extra and for a percentage of the item's retail price.
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