Car Insurance Vs. Car Warranties

Here’s what separates a car insurance policy from a car warranty.Car Insurance Vs. Car Warranties

While auto insurance and car warranties might seem similar, in actuality, they offer widely different types of coverage. Interested in learning more about the different coverages offered by each? Then read on to learn what differentiates car insurance from a car warranty.

Car Insurance

At its core, car insurance is designed to offer the policyholder financial protection in the event that they cause third-party injury, property damage, or other losses. There are other insurance options that will extend coverage for the policyholder’s own medical treatment and car damages.

Car Warranty

Car warranties are normally issued on brand-new cars by the auto manufacturer. Essentially, a warranty is the manufacturer’s guarantee that the car will operate as advertised. They only provide coverage for mechanical issues within the car they are issued on.

Major Differences

  • Drivers have to secure their own car insurance coverages. This coverage is ongoing; so long as the policyholder pays their premiums, they will have the coverage that they need. Car warranties come standard on new cars, but this coverage does have an expiration date. Coverage will end once a certain number of years or miles are met.
  • Auto insurance will extend coverage to address another’s medical treatment or repair costs. Car warranties only offer coverage for the cars they are issued on.
  • Car insurance will offer coverage for the damages caused by vandalism, theft, fire, extreme weather, and other external damage events. Car warranties only offer coverage for the issues associated with mechanical breakdown, malfunction, or other internal issues caused by a manufacturer’s mistake.

These are the main differences between car insurance and a car warranty.  Do you want assistance with securing the right auto insurance coverage to meet your needs?  Then do not hesitate to contact the experts at VGW Walker Insurance in Texas.  We are ready to get you covered today.