Two Types of Extended Auto 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. In contrast with true warranties, which are part of the vehicle price, extended warranties are purchased independently.
When you talk about extended warranties, there are two key types: original equipment manufacturer (OEM) and aftermarket. Ford and Toyota are 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 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. 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.
In most cases, third-party or aftermarket warranty providers like Cars Protection Plus offer practically the same coverage that OEMs offer. But of course, these two are still independent products, and third-party warranties can still vary, depending on the specific company. Policies and deductibles, for one, are usually different as well.
Another difference between OEM and third-party warranties concerns the administration of 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 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. Sometimes, you will even have no other option but a third-party warranty. If you buy a used Toyota at a Ford dealership , for instance, it’s unlikely that you will be given a Toyota OEM warranty.
If you’re planning to buy an extended warranty, make sure you read the fine print. Most of all, pick a good provider like Cars Protection Plus.