Two Types of Extended Auto Warranties
An extended warranty is basically car insurance that protects you against expensive unanticipated repairs within a specified period and mileage range. In contrast with true warranties, which are part of the vehicle price, extended warranties are purchased independently.
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. A third party would be a warranty or insurance company that has no direct affiliations with a vehicle brand. One example of a company that provides third-party service warranty is Cars Protection Plus.
Powertrain and bumper to bumper are two kinds of OEM-provided warranties. 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. It pays do your research on what these other services will be for different providers in your area. For example, in Murrysville, Pennsylvania, Cars Protection Plus is one of the best choices you have.
Cars Protection Plus
When deciding which warranty is the best, you may have to choose between a package with a deductible and without. Like any other type of insurance out there, a bigger deductible will automatically reduce the policy’s total price. What’s great is that OEM warranty deductibles are generally minimal (usually under $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. 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 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 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, 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’re planning to buy an extended warranty, make sure you read the fine print. Most importantly, choose a good provider such as Cars Protection Plus.