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What Separates Car Insurance from a Car Warranty?

Learn the differences between auto insurance and a car warranty.

While car insurance and a car warranty might sound similar, in reality, the coverages that each offers differs considerably. Curious to learn more about the coverage distinctions? Then read on to learn what differentiates an auto insurance policy from a car warranty.

Car Insurance

The most basic form of car insurance offers financial protection in the event that a policyholder causes property damage, bodily injury, and other losses to another party. However, there are other car insurance options that will offer coverage for the policyholder’s own repairs and medical treatment, should they experience a collision or some other significant damage event. Here are some of the highlights of car insurance:

  • Policyholders secure their own coverage. Additionally, coverage is continuous; so long as premiums are paid, the policyholder will have the insurance coverage that they need.
  • Auto insurance offers coverage options that extend coverage to third parties.
  • Insurance offers coverage for the damages caused by vandalism, theft, fire, extreme weather, and other external damage events.

Car Warranties

Car warranties are generally issued by the vehicle’s manufacturer on a brand-new car. In basic terms, a warranty is a guarantee that the vehicle will operate as promised. Should the car experience mechanical issues, the warranty would offer compensation for its repairs. Here are some of the highlights of car warranties:

  • Car warranties come standard on brand new vehicles. However, the coverage that they offer is not ongoing. Warranties normally expire after a set number of years or miles is met.
  • Car warranties only offer coverage for the car they are issued on; they are not responsible for damage or losses to others.
  • Warranties only cover the damages stemming from an internal mechanical issue with the car. They only cover issues stemming from a manufacturer’s mistake.

These are the main differences between car insurance and a car warranty.  Are you looking to secure the protection that only the right auto insurance can offer?  Then don’t hesitate to contact the experts at Scautub Agency in Scotia, New York.  Our dedicated team is ready to get you the coverage that you need today.

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