Auto warranty refers to an agreement executed by a vehicle dealer with the support of a third party vendor to repair and maintain a vehicle for a specified period of time from the date of sale. An auto warranty covers repairs and maintenance cost of vehicles covering the power train, drive train, steering mechanism, power system and brake mechanism. Aftermarket auto warranties refers to warranty extended to used cars or pre-owned cars. 

It is mandatory for every dealer of used cars to issue aftermarket auto warranty to customers. Those dealers not issuing warranty to buyers of used cars are liable for punishment under US federal law. Besides, it is illegal to run the cars on the roads without a valid warranty. On occasions, under pressure, car dealers might offer fraudulent warranties to car buyers. Beware of such aftermarket auto warranties. To ensure that used car owners are not cheated with fraudulent warranties, the US government has evolved law. It is called lemon law. 

Review at least four different offers of aftermarket auto warranties before purchasing a warranty. The warranty period ranges between three months to three years. It is also offered for distance covered between 3,000 kilometers to 30,000 kilometers. Choose a flexible package since it gives you the freedom of changing the warranty if you are not happy with the service provided.