Auto & Motor

Study: My Understanding of Warranties

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

Two Types

When you talk about extended warranties, there are two key types: original equipment manufacturer (OEM) and aftermarket. Examples of OEMs are Chevrolet and Ford. 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.

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. 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. 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, 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.

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, always know the payment expectations up front.

What you may find most advantageous with third-party warranties compared to OEM warranties is that they are incredibly cheaper. There are even cases where a third-party warranty becomes the only option you have. If you buy a used Toyota at a Ford dealership , for instance, it’s unlikely that you will be given a Toyota OEM warranty.

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