Two Types of Extended Vehicle 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.
These days, you will find two primary types of extended warranties: 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. Cars Protection Plus is an example of a company that offers third-party service warranties.
Powertrain and bumper to bumper are two kinds of OEM-provided warranties. 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 …