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. 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. 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.
Two types of warranties that OEMs offer are 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 …