What Separates Car Insurance from Car Warranties?

Here’s what makes car insurance coverage different from car warranty protections.

While car insurance and car warranties both offer auto protections, the types of coverages that they offer varies widely. Curious to learn what differentiates an auto insurance policy from a car warranty? Here is a breakdown of their most significant differences.

Car Insurance

Car insurance is specifically designed to offer the policyholder financial protection in the event that they are responsible for causing third-party damages, injuries, or other losses. However, there are also other insurance options that allow the policyholder to secure coverage for their own repairs and medical treatment.

Car Warranties

Car warranties are generally issued on brand-new cars by the auto manufacturer. Essentially, a warranty is a guarantee that the car will operate as advertised. Warranty coverage only applies to mechanical issues with the car.

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. On the other hand, car warranty coverage comes standard on new cars, but this coverage is limited. Warranty coverage will expire once a certain number of years or miles are met.
  • Car insurance will offer coverage for the damages and injuries you cause to another party. In contrast, car warranties only offer coverage for the car that they are issued on.
  • Finally, car insurance will offer coverage for the damages that your car might sustain as a result of an accident, act of vandalism, fire, extreme weather, or other external event. A car warranty offers coverage for a car’s internal issues. For instance, it will cover mechanical breakdowns, equipment malfunctions, and the like. A good way to think about it is that car insurance will cover things that happen to a car while car warranties cover issues within a car.

This is what differentiates car insurance from a car warranty.  Looking to secure the right auto insurance coverage for your vehicle?  Then don’t hesitate to contact the experts at Stromsoe Insurance Agency in Murrieta, California.  Our dedicated team is ready to assist you with all your insurance needs today.

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