Lessons Learned from Years with Warranties

Two Types of Extended Auto 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. Toyota and Chevrolet are two examples of OEMs. Warranty or insurance providers having no direct connections with a car brand are considered third parties. One example of a company that provides third-party service warranty is Cars Protection Plus.

OEM Warranties

Powertrain and bumper to bumper are two kinds of OEM-provided warranties. 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 generally has features that are similar to the benefits offered by a new vehicle purchase, but with the addition of other services like roadside assistance. Research what such other services will be for various providers in your location. Cars Protection Plus is one of the best choices – if not the best – you have if you are somewhere in Murrysville, Pennsylvania.

Cars Protection Plus

As you choose the best warranty for you, you may have to select between a package that comes with or without a deductible. Like any other type of insurance out there, a bigger deductible will automatically reduce the policy’s total price. The great thing is OEM warranty deductibles are usually under $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. 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 won’t be always be quick, but if you choose a reputable provider such as Cars Protection Plus, this will rarely 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, 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 intend to buy an extended warranty from a third party, make it a point to review the fine print thoroughly. Most of all, pick a good provider like Cars Protection Plus.