A more thorough explanation:

Extended warranty contracts are additional warranties that can be purchased for a product or service to provide additional coverage beyond the original warranty. These warranties can extend the time of coverage or expand coverage to other things not provided by the original warranty.

For example, if you purchase a new car, it may come with a manufacturer's warranty that covers repairs for a certain period of time. However, you may choose to purchase an extended warranty that covers repairs for a longer period of time or includes additional components not covered by the original warranty.

Extended warranties can be purchased for a variety of goods, including electronics, appliances, and vehicles. They can be bought from the retailer or from third-party insurers.

It's important to carefully consider whether an extended warranty is worth the cost, as they can be expensive and may not always provide significant additional coverage. It's also important to read the terms and conditions of the warranty carefully to understand what is and isn't covered.