The new car warranty, which is also known as the original manufacturer's warranty, is a contract between you and the manufacturer that assures you that for a specific amount of time or mileage, the parts and labor for the replacement or repair or the covered systems will be paid. Most new car warranties are generally limited to three years or 36,000 miles, whichever comes first. The purpose of these new car warranties is to guarantee that the brand new car you just purchased has no manufacturer's defects.

A warranty is not an insurance policy. While they are similar in that they both protect you from the financial payments of damages to your car, they differ in their legal construction. An insurance policy is a direct contract between you and the insurance company, while a warranty is provided by a dealer and is a contract between the dealer and you. However, some insurance companies do offer this type of insurance policy, which is called "mechanical breakdown insurance."

Another type of warranty new cars have is called the "adjustment warranty." This type of warranty is provided by the car dealership, which covers all parts and systems. The adjustment warranty is usually a short-term warranty that usually only lasts for ninety days or less.

The new car warranty will usually have many parts to it. The bumper-to-bumper warranty is the most comprehensive part of the new car warranty. This deal covers everything from the tires up to the wiper blades.

Another part of the original warranty is the powertrain/drivetrain warranty. This will cover the engine, transmission, and differential. This generally has a wider coverage than the bumper-to-bumper warranty because it covers a specific number of months and number of miles, and it covers items considered as an extensive repair.

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