Two Types of Extended Vehicle Warranties
An extended warranty is essentially an insurance policy on your car that provides protection against costly unexpected repairs within a particular span of time and mileage. While true warranties are included in the price of the vehicle, extended auto warranties are sold separately.
These days, you will find two primary types of extended warranties: original equipment manufacturer (OEM) and aftermarket. Ford and Toyota are examples of OEMs. Warranty or insurance companies are considered third parties when they have no direct business relations with an automobile brand. One example of a company that provides third-party service warranty is Cars Protection Plus.
Two types of warranties that OEMs offer are powertrain and bumper to bumper. A powertrain warranty is meant to cover engine and transmission issues that directly stem from poor workmanship; a bumper to bumper warranty, on the other hand, covers most other problems that may crop up, including those that affect the car’s electronic systems (navigation, onboard computers, etc.).
An extended OEM warranty generally has features that are similar to the benefits offered by a new vehicle purchase, but with the addition of other services like roadside assistance. Research what such other services will be for various providers in your location. Cars Protection Plus is one of the best choices – if not the best – you have if you are somewhere in Murrysville, Pennsylvania.
Cars Protection Plus
When deciding which warranty is the best, you may have to choose between a package with a deductible and without. As with other insurance types out there, a bigger deductible automatically decreases the policy’s overall cost. The good news is that OEM warranty deductibles are typically minimal – below $200.
A lot of third-party or aftermarket warranties, including those provided by Cars Protection Plus, provide similar coverage as those offered by OEMs. But of course, these two are still independent products, and third-party warranties can still vary, depending on the specific company. There will be different policies and different deductibles too.
How coverage is administered constitutes another significant difference between OEM and third-party warranties. With a third-party warranty, for example, you may have to pay for a repair out-of-pocket and then file for reimbursement after. The process may take some time, but if you choose a good provider like Cars Protection Plus, this will hardly be an issue. In any case, it’s crucial that yo know your costs right from the start.
What could be the most important advantage of third-party over OEM warranties is that they are dramatically cheaper. There are even cases where a third-party warranty becomes the only option you have. So if you purchase a used Ford at a Hyundai dealership, for instance, you sure won’t be given a Ford OEM warranty.
If you intend to buy an extended warranty from a third party, make it a point to review the fine print thoroughly. Most of all, pick a good provider like Cars Protection Plus.