Auto warranty is an undertaking given by the car manufacturer and executed by the auto dealer to repair and maintain a vehicle for a period of time from the date of its sale. During the warranty period, which lasts for three years, the car dealer will bear the cost of the repairs and maintenance. If there are some genuine manufacturing defects in the car like faulty spare parts, they will be replaced and repaired for free. However, certain parts cannot be replaced under the warranty. Similarly, the accessories and spare parts damaged in road accidents cannot be replaced under the auto warranty scheme. The auto warranty is a car protection warranty. 

The auto warranty is offered on twin bases, time and distance. The auto warranty will be in place for a period of up to two years or three years depending on the convenience of the car owner. If the auto warranty is issued on the basis of distance, it will be up to 30,000 miles covered by the vehicle. Some warranties are an amalgamation of the two. It means whichever of the two factors are accomplished first, the warranty will expire first. The auto warranty will take care of the cost of repairing and maintaining the vehicle’s drive train, power train, brake mechanism, steering system and engine.