Polk, a leading global automotive market intelligence firm, projects that automotive sales around the world will be 6.7 percent higher in 2012 compared to last year, but overall growth in the U.S. will be modest compared to many other regions. This is due mainly to America's slow and steady economic recovery, which resulted in high sales numbers for 2011 but will likely also dampen new car sales in the coming year.

Overall, U.S. sales numbers are expected to increase 7.3 percent, which is modest compared to the projected 16 percent improvement in China. However, Polk reports that America's luxury sector could see as much as a 14 percent increase in sales.

"More affluent buyers are returning to the market for new vehicles, after three years of spending reductions," explained Anthony Pratt, Polk's director of forecasting for the Americas. "The luxury segment also offers a wide variety of product options for consumers across all segments, ranging from small cars to SUVs."

Whether drivers are getting into new vehicles or want to hang onto their current models longer, an extended auto warranty can provide protection in the event that certain auto parts need to be serviced or replaced.