A warranty is a necessity for every car whether it is a new or used car. These help you to manage the unexpected expenses that might occur if your car breaks down.  A used car warranty or an extended car warranty is a warranty given on a used car to provide coverage for its repairs. There may be different clauses mentioned in each warranty so it is necessary for the car owner to compare the coverage provided that suits his needs. There are some cases when at the time of purchasing a used car, the original car warranty will be still effective and can save your money on purchasing a used car warranty.

When choosing a warranty, one should be careful and go with a reputed past record as the company might prove to be in trouble, leaving you with no warranty at all. But to be on a safer side, car dealers can be more promising. Warranty documents should also be read carefully as some of the clauses mentioned might be ambiguous. A contract is signed between the company and the car owner. This includes assurance for covering of repairs, breakdowns, wear and tear of the vehicle’s body, and damage caused by overheating. Some companies also provide roadside assistance, towing services, etc. The company may however thoroughly inspect the vehicle to match its expected standards, and if unsatisfied it might also refuse to provide any warranty.