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DEFINITION of 'Warrant Coverage'. An agreement between a company and its shareholders whereby the company issues warrants equal to some percentage of the dollar amount of the shareholder's investment. Next Up.
Do You Need an Extended Warranty? Do You Need an Extended Warranty? An extended warranty is effectively an insurance policy designed to protect the owner from the cost of repairs after the original new-vehicle warranty has expired. An extended warranty is sometimes called a service contract, vehicle service agreement, or extended service agreement.