Overwhelmed by the Complexity of Warranties? This May Help

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.

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. 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.

OEM Warranties

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 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. 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. As with other insurance types out there, a bigger deductible automatically decreases the policy’s overall cost. The great thing is OEM warranty deductibles are usually under $200.

Third-Party Warranties

A lot of third-party or aftermarket warranties, including those provided by Cars Protection Plus, provide similar coverage as those offered by OEMs. But of course, you’re still talking about two different products, and even third-party warranties can be unique, depending on the provider. There will be different policies and different deductibles too.

Original equipment manufacturer and third-party warranties may also differ in the way they administer 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 may take some time, but if you choose a good provider like Cars Protection Plus, this will hardly be an issue. In any case, always know the payment expectations up front.

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 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.