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Two Types of Extended Vehicle Warranties

An extended warranty is basically car insurance that protects you against expensive unanticipated repairs within a specified period and mileage range. True warranties are automatically included in a vehicle purchase, while extended auto warranties are a separate product.

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. One example of a third-party service warranty provider that is fast growing in popularity is Cars Protection Plus.

Manufacturer Warranties

Two types of warranties that OEMs offer are powertrain and bumper to bumper. A powertrain warranty is meant to cover engine and transmission issues that directly stem from poor workmanship; a bumper to bumper warranty, on the other hand, covers most other problems that may crop up, including those that affect the car’s electronic systems (navigation, onboard computers, etc.).

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. One of your best options – if not your best – in Murrysville, Pennsylvania is Cars Protection Plus.

Cars Protection Plus

When deciding which warranty is the best, you may have to choose between a package with a deductible and without. 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.

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, 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.

How coverage is administered constitutes another significant difference between OEM and third-party warranties. 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. 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, 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. Sometimes, you will even have no other option but a third-party warranty. 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 planning to buy an extended warranty, make sure you read the fine print. Most importantly, buy from a reputable provider, such as Cars Protection Plus.