Two Types of Extended Car Warranties
An extended warranty is essentially an insurance policy on your car that provides protection against costly unexpected repairs within a particular span of time and mileage. In contrast with true warranties, which are part of the vehicle price, extended warranties are purchased independently.
When you talk about extended warranties, there are two key types: original equipment manufacturer (OEM) and aftermarket. Ford and Toyota are examples of OEMs. A third party would be a warranty or insurance company that has no direct affiliations with a vehicle brand. Cars Protection Plus is an example of a company that offers third-party service 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.).
An extended OEM warranty often offers benefits that come with a new vehicle purchase, with added services such as roadside assistance. Know what these other services are with different providers in your area. Cars Protection Plus is one of the best choices – if not the best – you have if you are somewhere in Murrysville, Pennsylvania.
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.
In most cases, third-party or aftermarket warranty providers like Cars Protection Plus offer practically the same coverage that OEMs offer. 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 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, 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. 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 of all, pick a good provider like Cars Protection Plus.
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