An extended warranty is basically car insurance that protects you against expensive unanticipated repairs within a specified period and mileage range. In contrast with true warranties, which are part of the vehicle price, extended warranties are purchased independently.
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 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.
There are two kinds of warranties provided by OEMs, namely, 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 …