A warranty is an agreement executed by a product manufacturer to repair and maintain the product for a period of time from the date of its sale. Normally, the warranty is valid up to two years from the date of the sale. During this period, if any genuine manufacturing defect is detected in the product, it has to be rectified or the spare part has to be replaced. Some times the entire product is replaced if found faulty within the warranty period. Warranty is also issued to automobiles. The warranty for your car is called auto warranty.

There are two categories of auto warranty. They are new car warranty and used car warranty. The used car warrant is given to used cars or pre-owned cars. The used car warranty is also called as after-market auto warranty. The new car warranty is issued to only the new cars. The used car warranty premium is higher when compared to the new car warranty since the risks of insuring used cars are greater. Besides, the services offered under used car warranty are less when compared to the new car warranty. Exercise utmost caution while purchasing a warranty. Review at least five different warranty offers.