An auto warranty, also known as a car warranty or vehicle service contract, is a contractual agreement between the vehicle owner and a warranty provider that offers coverage for repairing or replacing certain vehicle components and systems. It provides financial protection against unexpected mechanical or electrical failures that may occur during a specified period of time or mileage.

Auto warranties can come in various forms, including manufacturer warranties, extended warranties, and aftermarket warranties. Manufacturer warranties, often called factory warranties, are provided by the vehicle manufacturer and typically cover the vehicle for a specific duration or mileage limit. On the other hand, extended warranties can be purchased separately and offer additional coverage beyond the manufacturer’s warranty. Aftermarket warranties are typically offered by third-party companies, such as Endurance Warranty, and provide coverage for used cars.