Everyone should have a car warranty. It is the guarantee from the provider that if your car ever need repairs they would cover the cost of the repairs or at least provide re-imbursement. Auto warranties however are not so simple or straight forward. There are a lot of paperwork involved and contracts to agree upon and clauses to verify and confirm.

Of all the car warranties that you can get for your car, the new car warranty is probably the most simple. This car warranty is automatically issued by the authorized car dealer or the manufacturer, and usually provides coverage for both breakdown repairs and wear and tear repairs, that’s something most people do not differentiate between.
Used car warranties are probably the trickiest out of all the warranties that you would ever have for a car. In most instances, these warranties may not cover both breakdown and wear and tear repairs, or they may have limited coverage that you would need to ask about. In addition, the manufacturer’s warranty may still be valid on some used cars. This coverage would sometimes be automatically transferred to the new owner with the sale, but sometimes you may have to pay extra for this.