Two Types of Extended Auto 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. True warranties are automatically included in a vehicle purchase, while extended auto warranties are a separate product.
When you talk about extended warranties, there are two key types: original equipment manufacturer (OEM) and aftermarket. Ford and Toyota are examples of OEMs. Warranty or insurance providers having no direct connections with a car brand are considered third parties. One example of a company that provides third-party service warranty is Cars Protection Plus.
Two types of warranties that OEMs offer are powertrain and bumper to bumper. A powertrain warranty covers your engine and transmission against workmanship-related problems, while a bumper to bumper warranty takes care of most other issues, including those involving electronic systems in the car (power seats, onboard computers, etc.).
An extended OEM warranty often offers benefits that come with a new vehicle purchase, with added services such as 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.
When choosing the right warranty, you may have to decide if you want a plan that comes with or without a deductible. Like most other types of insurance, a higher deductible lowers the total cost of the policy. What’s great is that OEM warranty deductibles are generally minimal (usually under $200).
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, you’re still talking about two different products, and even third-party warranties can be unique, depending on the provider. They can also differ in terms of deductibles and general policies.
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, 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. 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.