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. While true warranties are included in the price of the vehicle, extended auto warranties are sold separately.

Two Types

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 providers having no direct connections with a car brand are considered third parties. Cars Protection Plus is an example of a company that offers third-party service warranties.

OEM Warranties

Powertrain and bumper to bumper are two kinds of OEM-provided warranties. 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 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. One of your best options – if not your best – in Murrysville, Pennsylvania is Cars Protection Plus.

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. 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).

Third-Party Warranties

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. Policies and deductibles, for one, are usually different as well.

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. 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, payment expectations should be known to you right from the beginning.

What might be the biggest advantage of third-party warranties is that they are substantially cheaper compared to OEM warranties. Sometimes, a third-party warranty may even be your only option. 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, choose a good provider such as Cars Protection Plus.