Learning The “Secrets” of Automobiles

Two Types of Extended Auto 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

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. 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 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 often offers benefits that come with a new vehicle purchase, with added services such as roadside assistance. It pays do your research on what these other services will be for 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 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

In most cases, third-party or aftermarket warranty providers like Cars Protection Plus offer practically the same coverage that OEMs offer. But of course, these are still two different products, and even the actual coverage offered by third parties can be unique. There will be different policies and different deductibles too.

Another difference between OEM and third-party warranties concerns the administration of coverage. With a third-party warranty, for example, you may have to pay for a repair out-of-pocket and then file for reimbursement after. The process may take some time, but if you choose a good provider like Cars Protection Plus, this will hardly be an issue. 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, you will even have no other option but a third-party warranty. 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 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.