When you begin looking for your new car, you need to keep in mind the warranty offers available.  A car is a manufactured product and you as a consumer have a right to a reasonable assurance on the quality of workmanship.  Every car manufacturer gives you an initial warranty covering a given period of time or mileage.

New car warranty has two types of coverage. In bumper-to-bumper, all products that wear out on a consistant basis like the brakes or tires are ignored while the engine and drive train coverage is quite comprehensive.  In any case, you should balance cost as well as coverage.

Factory warranties are definitely more expensive but your car would get the professional attention from factory-trained technicians. That is a big plus for new cars.  But, the only catch here could be the low or limited coverage and extensive exclusion clauses.  Most manufacturers like to maintain exclusivity in handling warranty repairs in order to give good service.

Third-party warranties are cheaper but have a lot of procedural hassles. Moreover, many require you to pay upfront and claim reimbursement.  Also, you run the risk of losing coverage if the service provider goes out of business.

Therefore, it pays to read about the reliability of the insurance company before entering into a warranty agreement. Pay special attention to the exclusion clauses as well as the specific service requirements.