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.
Original equipment manufacturer (OEM) and aftermarket are the two mind types of extended warranties available today. 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.
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 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 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. The great thing is OEM warranty deductibles are usually under $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. 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, payment expectations should be known to you right from the beginning.
What could be the most important advantage of third-party over OEM warranties is that they are dramatically cheaper. 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.