Car Warranty vs Car Insurance. Is There a Difference?

A Car Warranty vs Insurance. How To Tell Them Apart

‍We’ve heard it all! Car insurance, vehicle service contracts, breakdown protection. Is there a difference? If so, which one do you need to keep your wheels healthy?

Car warranty vs insurance. Most car owners cannot tell the difference between the two. But how are they different and what do they offer? 

Although both auto warranties and car insurance offer car protection, they differ. There are a couple of similarities that both offer. Learn more about warranty vs insurance.

What is the Difference Between Warranty and Insurance?

Your car insurance company will cover expenses after an accident. Your auto warranty covers mechanical breakdowns. 

Motorists might want both car insurance and an extended warranty (once the factory warranty expires). This will give motorists peace of mind. Many automobile owners choose to have insurance cover and a car warranty.

Why Is Car Insurance Cover So Important for Motorists?

In most US states, laws require car insurance. Car insurance plans buffer motorists from expensive accidents, fire, and theft. Or other eventualities like natural disasters. State required insurance must include liability insurance. This helps pay for damages and injuries to other parties.

Insurance service providers often offer home warranty plans with car insurance. Product bundles could save you in the long term.  

Car insurance can cover more than collision coverage. Other types of cover could include roadside assistance, car rental, and other perks. 

For car owners who have their vehicles on loan or lease they need insurance to protect against expensive eventualities. We refer to this insurance as Collision and Comprehensive cover. All auto insurance service providers sell the above.

‍Car Insurance typically covers these:

Not all drivers have adequate cover. Uninsured or underinsured motorist coverage can help you cover medical bills and repairs.

‍Find the best insurance just for you:

‍Body injury liability: If you cause an accident and someone gets injured, your liability coverage will pay for their medical bills. They will also pay legal fees and loss of income. This essential cover safeguards you from extensive financial losses caused by accidents.

Collision coverage: Collision coverage pays for replacement and repairs to your damaged car. Collision cover will provide cover regardless of who caused the accident.

Comprehensive coverage: Comprehensive coverage covers damages caused from events other than collisions. This includes theft, fire, vandalism, and natural disasters, to name a few.

Property damage liability: If you cause damages to someone’s property while driving, your property liability will pay. Property damage liability covers cars, poles, fences, and other structures you damage.

Medical Payment Coverage (personal injury protection): Depending on the US state, there are varying options for medical coverage. This is regardless of whether you or the other party is at fault. 

How to Tell a Warranty From Insurance Cover. What is a Warranty?

Automotive car warranties are the manufacturer’s promise to motorists when they buy a new car. Or you might invest in an extended car warranty or vehicle service contract once the factory warranty expires. 

Many different types of car warranties exist. An extended car warranty will cover mechanical issues and vehicle failure. The type of repair depends on whether you have a factory or extended warranty, and what plan you have.

What Your Factory Warranty Covers:

The factory warranty covers a manufacturer's defects. It does not cover wear and tear items like brake pads, tires, windshields and wiper blades. The automotive warranty promises you to repair or replace any defective parts.

When your vehicle breaks down your manufacturer's warranty or extended warranty will help repair your car. Car warranties are not legally required. 

What Are The Different Types of Factory Warranties?

Car warranties offer a wide range of packages. Some of these are bumper-to-bumper plans and Powertrain warranties.

Your bumper-to-bumper warranty is a comprehensive cover plan. It covers most parts from the back bumper to the front bumper of your car (except the bumper itself). Your warranty will list all exclusions.

A Powertrain warranty is not as comprehensive as your bumper-to-bumper warranty. But it is longer than your bumper-to-bumper warranty. 

What Your Extended Warranty Covers:

Choose from a plethora of vehicle service contracts once your manufacturer’s warranty expires. 

There is no need to give your name, number or email to get a quote online. Shop and compare thousands of providers and plans for different warranties. Find the best deals to suit your needs and budget within seconds.

To Conclude:

Whether you are already a car owner or in the process of buying one, insurance cover and warranties help your bottom line. Don’t let unexpected damages or repairs put a dampener on the enjoyment of owning your dream wheels.