All motorists with adequate car care opt for an auto warranty. The auto warranty comes in two categories. The two categories of auto warranty are new car warranty and used car warranty. While the used car warranty, also known as aftermarket auto warranty, is issued to pre-owned cars or used cars, the new car warranty is issued to brand new cars. There are separate laws governing both categories of warranty. The rules governing new car warranty is called new car warranty, the laws governing the used car warranty is called used car warranty law, also known as lemon law since it is protective in nature. The lemon law was evolved after a number of customers were duped from fraudulent warranty. Plenty of features are offered in a fraudulent warranty, but none are delivered. Therefore, always opt for a genuine warranty irrespective of the cost angle.

The auto warranty is issued by the auto dealer in association with the car manufacturer. Any manufacturing defect can be rectified or the spare part concerned replaced in the warranty period. However, the warranty does not take care of the replacement of expensive spare parts or those damaged in road accidents. Review multiple warranty offers before settling for one.