Two Types of Extended Car Warranties
An extended warranty is actually a type of car insurance that provides safeguards against costly and unforeseen repairs for a certain period 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. Toyota and Chevrolet are two examples of OEMs. Warranty or insurance companies are considered third parties when they have no direct business relations with an automobile brand. Cars Protection Plus is an example of a company that offers third-party service warranties.
Two types of warranties that OEMs offer are powertrain and bumper to bumper. A powertrain warranty covers engine and transmission issues that are related to workmanship, while a bumper to bumper warranty is intended for most other potential problems with the vehicle, including those involving the vehicle’s electronic systems (power seats, navigation.).
In most cases, an extended OEM warranty’s features are similar to those that are provided with a new vehicle purchases, plus additional 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.
As you choose the best warranty for you, you may have to select between a package that comes with or without a deductible. 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.
Usually, third-party or aftermarket warranty companies, such as Cars Protection Plus, provide mainly the same coverage that you can expect from OEMs. But of course, these are still two different products, and even the actual coverage offered by third parties can be unique. Policies and deductibles, for one, are usually different as well.
Another difference between OEM and third-party warranties concerns the administration of coverage. For instance, a third-party warranty may require you to pay out-of-pocket for a repair, and them file a claim to be reimbursed later. 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 you may find most advantageous with third-party warranties compared to OEM warranties is that they are incredibly cheaper. Sometimes, a third-party warranty may even be your only option. 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’re thinking of buying an extended warranty, be sure to read the fine print to the letter. Most of all, pick a good provider like Cars Protection Plus.