A Beginners Guide To Automobiles

Two Types of Extended Car 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. True warranties are automatically included in a vehicle purchase, while extended auto warranties are a separate product.

Two Types

When you talk about extended warranties, there are two key types: original equipment manufacturer (OEM) and aftermarket. Examples of OEMs are Chevrolet and Ford. 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.

OEM Warranties

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 often offers benefits that come with a new vehicle purchase, with added services such as roadside assistance. Know what these other services are with different providers in your area. 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

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 great thing is OEM warranty deductibles are usually under $200.

Third-Party Warranties

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 are still two different products, and even the actual coverage offered by third parties can be unique. There will be different policies and different deductibles too.

Another difference between OEM and third-party warranties concerns the administration of coverage. 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 won’t be always be quick, but if you choose a reputable provider such as Cars Protection Plus, this will rarely be a problem. In any case, payment expectations should be known to you right from the beginning.

What might be the biggest advantage of third-party warranties is that they are substantially cheaper compared to OEM warranties. 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’re thinking of buying an extended warranty, be sure to read the fine print to the letter. Most importantly, buy from a reputable provider, such as Cars Protection Plus.

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