Getting Creative With Businesses Advice

Two Types of Extended Car 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.

Two Types

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. Warranty or insurance companies are considered third parties when they have no direct business relations with an automobile brand. Cars Protection Plus is an example of a company that offers third-party service warranties.

OEM Warranties

Two types of warranties that OEMs offer are powertrain and bumper to bumper. A powertrain warranty covers engine and transmission issues that are related to workmanship, while a bumper to bumper warranty is intended for most other potential problems with the vehicle, including those involving the vehicle’s electronic systems (power seats, navigation.).

In most cases, an extended OEM warranty’s features are similar to those that are provided with a new vehicle purchases, plus additional 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 deciding which warranty is the best, you may have to choose between a package with a deductible and without. 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.

Third-Party Warranties

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 two are still independent products, and third-party warranties can still vary, depending on the specific company. There will be different policies and different deductibles too.

How coverage is administered constitutes another significant difference between OEM and third-party warranties. 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. 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, always know the payment expectations up front.

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 if you purchase a used Ford at a Hyundai dealership, for instance, you sure won’t be given a Ford OEM warranty.

If you’re planning to buy an extended warranty, make sure you read the fine print. Most importantly, buy from a reputable provider, such as Cars Protection Plus.