The Art of Mastering Automobiles

Two Types of Extended Car Warranties

An extended warranty is basically car insurance that protects you against expensive unanticipated repairs within a specified period and mileage range. While true warranties are included in the price of the vehicle, extended auto warranties are sold separately.

Two Types

When you talk about extended warranties, there are two key types: original equipment manufacturer (OEM) and aftermarket. Toyota and Chevrolet are two examples of OEMs. Warranty or insurance providers having no direct connections with a car brand are considered third parties. One example of a third-party service warranty provider that is fast growing in popularity is Cars Protection Plus.

OEM Warranties

There are two kinds of warranties provided by OEMs, namely, 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.).

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. For example, in Murrysville, Pennsylvania, Cars Protection Plus is one of the best choices you have.

Cars Protection Plus

As you choose the best warranty for you, you may have to select between a package that comes with or without a deductible. Like most other types of insurance, a higher deductible lowers the total cost of the policy. The good news is that OEM warranty deductibles are typically minimal – below $200.

Third-Party Warranties

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 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.

Original equipment manufacturer and third-party warranties may also differ in the way they administer coverage. For example, with a third-party warranty, you may have to pay out-of-pocket for a repair and then file for reimbursement later on. 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, payment expectations should be known to you right from the beginning.

What could be the most important advantage of third-party over OEM warranties is that they are dramatically cheaper. Sometimes, you will even have no other option but a third-party warranty. 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.