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. While true warranties are included in the price of the vehicle, extended auto warranties are sold separately.
Original equipment manufacturer (OEM) and aftermarket are the two mind types of extended warranties available today. Toyota and Chevrolet are two examples of OEMs. Warranty or insurance companies are considered third parties when they have no direct business relations with an automobile brand. One example of a company that provides third-party service warranty is Cars Protection Plus.
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. Research what such other services will be for various providers in your location. For example, in Murrysville, Pennsylvania, Cars Protection Plus is one of the best choices you have.
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 great thing is OEM warranty deductibles are usually under $200.
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, these two are still independent products, and third-party warranties can still vary, depending on the specific company. Policies and deductibles, for one, are usually different as well.
Original equipment manufacturer and third-party warranties may also differ in the way they administer coverage. 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. 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, it’s crucial that yo know your costs right from the start.
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. 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 intend to buy an extended warranty from a third party, make it a point to review the fine print thoroughly. Most importantly, buy from a reputable provider, such as Cars Protection Plus.
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