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.
Original equipment manufacturer (OEM) and aftermarket are the two mind types of extended warranties available today. Examples of OEMs are Chevrolet and Ford. 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.
Powertrain and bumper to bumper are two kinds of OEM-provided warranties. 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 …