Auto warranty is a crucial component in the automobile industry. There are primarily two types of auto warranties. One is usually provided by the manufacturer and the other can be purchased from a vehicle dealer or the third party vendors. These are called extended auto warranties. But it may not be required if you change your car every 3 to 4 years.

The auto warranties usually adhere to the Federal Trade Commission (FTC) Facts for Consumers. They ensure that the customers are not harassed or duped by these companies. If required the customers may file a suit against such companies. The auto warranties if purchased from the dealer have no waiting period and start the moment you purchase your vehicle. In some cases one can customize the warranties. It can suit one’s need and budget. A lower premium can be set if required, subject to a few alterations to the policy.     

The auto warranty coverage ranges from $500 to $1000 and can be extended for 10 years. The comprehensive coverage can be taken on a vehicle subject to a certain predetermined miles on the odometer. Also, with this coverage, the vehicle can also be sold at a good price. The warranty can also be transferred and the resale value that can be expected is about 15% to 25% higher than the normal vehicles, without any warranty. Auto warranties are a must for all vehicle owners for a safe and secure journey