Auto warranty refers to an assurance given by the vehicle manufacturer to repair and maintain the vehicle for a period of time from the date of its sale. The warranty also covers the cost of the replacement of faulty parts if the defect is genuine and developed at the production level. However, the warranty does not take care of the cost of the replacement of expensive spare parts. Also, vehicles damaged in accidents cannot be repaired under warranty. Only genuine manufacturing defects will be covered under the warranty.
There are two types of auto warranty. They are new car warranty and used car warranty. New car warranty is issued to brand new cars while used car warranty is issued to a used car or pre-owned cars. Used car warranty is also called aftermarket auto warranty.

The auto warranty is issued on the basis of twin factors. They are time and distance covered by the vehicle. For instance, the warranty is offered for a period of up to two years from the date of the sale. Otherwise, the warranty is in place up to 30,000 miles covered by the vehicle. Some auto warranty has a combination of both. It means the warranty period is in place up to two years or 30,000 miles, which ever comes first.