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Two Types of Extended Vehicle 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. True warranties are automatically included in a vehicle purchase, while extended auto warranties are a separate product.

Two Types

When you talk about extended warranties, there are two key types: original equipment manufacturer (OEM) and aftermarket. Ford and Toyota are examples of OEMs. Warranty or insurance providers having no direct connections with a car brand are considered third parties. One example of a third-party service warranty provider that is fast growing in popularity is Cars Protection Plus.

Manufacturer Warranties

There are two kinds of warranties provided by OEMs, namely, powertrain and bumper to bumper. 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 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. One of your best options – if not your best – in Murrysville, Pennsylvania is Cars Protection Plus.

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 good news is that OEM warranty deductibles are typically minimal – below $200.

Third-Party Warranties

In most cases, third-party or aftermarket warranty providers like Cars Protection Plus offer practically the same coverage that OEMs offer. 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.

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 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 you may find most advantageous with third-party warranties compared to OEM warranties is that they are incredibly 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 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.