Most of the new cars are provided with limited warranty that expires after a fixed period of time or after a predetermined number of miles. For example an auto dealer can provide limited warranty on a vehicle for 5 to 7 years or 50,000 miles which ever comes first.

Once this limited warranty expires, then the maintenance of the vehicle and all the repairs are your responsibility and the company now has nothing to do with the damage that occurs. In such a situation people choose extended auto warranties for added security.

These extended auto warranties will last for few years depending on the plan you choose. The coverage area includes body damage, engine problems, as well as other technical and accidental problems that the car faces in the time period of the warranty. You can also get your car covered by giving a one time fee.

The best way to choose an extended warranty is to compare the programs that are available in the market. Remember that dealership plans can vary from dealer to dealer. Thus if you are considering a dealership plan, you must compare it with other plans in the market that you can get directly from a company without going into dealerships.