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.
These days, you will find two primary types of extended warranties: 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. One example of a third-party service warranty provider that is fast growing in popularity 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. Research what such other services will be for various providers in your location. For example, in Murrysville, Pennsylvania, Cars Protection Plus is one of the best choices you have.
Cars Protection Plus
When choosing the right warranty, you may have to decide if you want a plan that comes with or without a deductible. As with other insurance types out there, a bigger deductible automatically decreases the policy’s overall cost. 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, 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. 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. This process is not always quick, but as long as you go with a well-reputed provider like Cars Protection Plus, this ceases to 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 for example, if you bought a used Chevrolet from a Toyota dealership, it’s unlikely that you will get a Chevrolet 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.