When you buy a brand new car from the showroom, the car comes with a manufactures warranty. This warranty usually covers the repair cost of your car within a predetermined time frame or mileage. However, once this warranty expires, you still need some coverage for your car. Then this is the time to opt for an Aftermarket Auto Warranty. This warranty comes from a third party and gives comprehensive coverage.

The Aftermarket Warranty can be bought from a dealer or as mentioned earlier from a third-party company. However, it is advisable to buy the warranty from the same dealer as they will ensure the warranty. But such warranty can be expensive and do not have a wide range of coverage like the coverage from the third-party companies. At times such warranties from the dealers have markup as high as $800-$1,200, while providing less coverage. Again some third-party companies may be part of under-funded, risk-retention groups. They have the risk of not covering your warranty eventually and you may loose money and time to fight them out. It is better you check with the Better Business Bureau to identify the best deal for you and also to ensure the authenticity of various Aftermarket Auto Warranty. Make sure that you are dealing with an A+ rated company while purchasing such warranty.