There are a couple of different types of warranties: a new car warranty, usually issued by the car's manufacturer, and a used-car or extended warranty that you may be able to purchase from either your car's manufacturer or a third-party company.

A new car warranty, sometimes called a factory warranty, is the car manufacturer's promise to help pay for replacement parts or covered repairs during your specified warranty period, according to Kelley Blue Book. This warranty is usually included in the initial cost of your car. According to Edmunds, new car warranties can last from three years or 36,000 miles to 10 years or 100,000 miles. Some factory warranties may also apply to certified pre-owned cars. Exactly what is included in the warranty can vary from company to company, so it's important to read your warranty documents carefully, suggests Edmunds.

New car warranties usually consist of two parts:

"Bumper-to-bumper" coverage: Typically includes items like your car's electronics or air conditioning system. This part of your warranty usually won't cover items that wear out due to regular use, such as tires and brake pads, explains Edmunds.
"Power train" coverage: Typically covers the car's engine and transmission.

You may be able to purchase an extended warranty to extend the length of your new warranty or to cover a used car. These warranties may be offered either by the car's manufacturer or an outside company. Depending on the warranty, you may find that some of the items that commonly wear out on cars (wiper blades, tires, brake pads) aren't covered, according to Edmunds. Your warranty may also require you to pay a deductible before the warranty begins paying out for repairs.

No matter what kind of warranty you have, it isn't a license to stop taking care of your car. Warranties typically won't pay for routine maintenance, like oil changes and fluid top-offs, according to Angie's List. In order to keep your warranty in force, the Federal Trade Commission (FTC) recommends servicing your car at all the required intervals and keeping records of all the work that's been done.