An  Auto warranty is a service under which the car manufacturer promises to maintain and repair the car for free without charging any fee to the customer. Under US law, no product can be sold without a valid warranty. Any product, including cars, if sold without a warranty, amounts to breach of law. Therefore, at the time of purchasing the car, make sure the auto warranty is offered. There are three categories of auto warranty. They are new car warranty, used car warranty and lifelong warranty.
The new car warranty is given to brand new cars. The used car warranty is given to used cars or preowned cars. The used car warranty is also called as after-market auto warranty. When compared to the new car warranty, the price of the used car warranty is higher considering the age of the car and the risk of insuring it. The third category of the auto warranty, life long warranty, is essentially issued to luxury and high end cars. It is called as life long warranty since it covers the entire age of the car. It is also called as the bumper to bumper warranty since it takes care of the car end to end till it is scrapped.