While purchasing a new car, the manufacturer provides the car owner with a factory warranty, which will bear the cost for repairing your car for an agreed time period, or mileage, whatever is first. When this warranty is expires, one may choose to go for an extended warranty. Any warranty that is not made available by the factory can be called an aftermarket auto warranty. Purchasing these warranties through the dealer is most advisable. Though they may be more expensive or may not provide you a good coverage, but still as they will have you sign a contract which will ensure your safety in times to come.

After market warranties do help you save your money in the future. But they are not applicable if you lease. Some of them also have a co-pay requirement before any service is done. Thus, if you want to go for a serene tension free journey, an auto warranty is a must for your vehicle.