Here are the major differences between a car insurance policy and a car warranty.
While it’s true that car insurance and warranties both offer coverage, they are wildly different from each other. Curious to learn what separates these two types of auto protection? Here are some of the major differences between car insurance and car warranties.
Car Insurance
At its core, car insurance is designed to offer the policyholder financial protection in the event that they are responsible for third-party injuries, property damages, or other losses. In addition to these coverage options, there are other types of insurance that offer compensation for the policyholder’s own medical treatment and repairs following a disaster event.
Car Warranties
Car warranties are issued on brand new cars by auto manufacturers. A warranty is essentially a guarantee that the car will operate as promised. Warranties offer coverage for any damages that are caused by some internal mechanical breakdown or malfunction.
Major Differences
- While you do have to secure your own car insurance coverage, this coverage is ongoing. So long as you pay your premiums, you will have the coverage that you need. Warranties come standard, but the coverage that they offer is limited. Coverage will expire once a certain number of years or miles is reached.
- Car insurance will offer coverage for third-parties if you are responsible for their losses. In contrast, a car warranty will only offer coverage for the car it is issued on.
- Car insurance will offer coverage for the damages caused by accident, vandalism, fire, extreme weather, or some other external event. Car warranties only offer coverage for internal, mechanical problems stemming from a manufacturer’s error.
These are the main differences between car insurance and car warranties. Looking to secure the auto insurance that you need to stay safe? Then contact the experts at ISU-Wissink Insurance. We are ready to assist you with all your coverage needs today.