Insurance that the warranty is extended, which means that during the period of the manufacturer's warranty under the warranty of the goods, the buyer must pay for the repairs in the event of a defect or failure of the product thereafter, but the coverage for extending such warranty period is called the Extended Warranty,

For such an Extended Warranty, the method of transferring the risk to insurance subject to a certain amount of payment from the contractor is called Extended Warranty Insurance.

Extended Warranty generally covers the cost of repairs in the event of a mechanical or electrical failure. If it is more economical to replace it with a new product than to make repairs, it may compensate for the cost of purchasing a new product.