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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

When you talk about extended warranties, there are two key types: 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. 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 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.).

In most cases, an extended OEM warranty’s features are similar to those that are provided with a new vehicle purchases, plus additional services like 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.

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 good news is that OEM warranty deductibles are typically minimal – below $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, these are still two different products, and even the actual coverage offered by third parties can be unique. Policies and deductibles, for one, are usually different as well.

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, it’s crucial that yo know your costs right from the start.

What could be the most important advantage of third-party over OEM warranties is that they are dramatically cheaper. There are even cases where a third-party warranty becomes the only option you have. So for example, if you bought a used Chevrolet from a Toyota dealership, it’s unlikely that you will get a Chevrolet OEM warranty.

If you’re thinking of buying an extended warranty, be sure to read the fine print to the letter. Most of all, pick a good provider like Cars Protection Plus.