Two Types of Extended Vehicle 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. 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. 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.
There are two kinds of warranties provided by OEMs, namely, 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 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. 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.
As you choose the best warranty for you, you may have to select between a package that comes with or without a deductible. Like any other type of insurance out there, a bigger deductible will automatically reduce the policy’s total price. 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. They can also differ in terms of deductibles and general policies.
How coverage is administered constitutes another significant difference between OEM and third-party warranties. 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, always know the payment expectations up front.
What you may find most advantageous with third-party warranties compared to OEM warranties is that they are incredibly 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 thinking of buying an extended warranty, be sure to read the fine print to the letter. Most importantly, choose a good provider such as Cars Protection Plus.