Essentially an insurance policy for a product, such as a vehicle, that consumers pay for up front. It extends the manufacturer’s warranty in ways such as the time frame and conditions covered. In the case of vehicles, it may include per-visit or per-repair deductibles. With a per-visit deductible, you’d pay a fixed amount, no matter how many repairs were made during a visit. With a per-repair deductible, you’d pay for each part repaired. Some extended warranties have zero deductibles but cost more up front.