Car Insurance vs Car Warranty and the best reasons to carry both types of coverage plans to prevent any auto-related financial burden on you or your family. Both a car warranty and car insurance is the answer for your car’s repair and maintenance, but you must keep in mind that both are fundamentally different from one another. To guarantee yourself of the right investment for your car’s overall well-being, you should understand the importance of carrying both types of coverage and the fundamental differences.
What Does A Car Warranty Do?
A protection plan provides support for your car’s repair and maintenance over a specified amount of time or mileage. By default, brand-new cars come with bumper-to-bumper factory warranties. When you purchase a new vehicle, your purchase will include the manufacturer's warranty for no additional cost – you just need to make the most out of its validity to ensure your car’s continued protection.
A car warranty, however, is a policy that protects your vehicle but in the unfortunate situations where your car breaks you now have a company to contact for 24/7 roadside assistance, free tow services, rental car coverage and all you need to pay out of your pocket is the deductible of $100. An extended car warranty is an option you can purchase from your dealership for vehicles that are outside the manufacturers warranty based on the vehicles age or mileage or an aftermarket car warranty industry leader like Protect My Car.
An extended car warranty is something you can purchase before or after your manufacturers warranty expires – if you choose to purchase the extended car warranty while you’re at the dealership you will have the choice to roll the cost into your new loan. If you do not want to pay interest on your extended auto warranty there are companies like Protect My Car that offer the same coverage plans with low monthly payment with no added fees or taxes.
How About Car Insurance?
Car insurance is a type of policy that provides specific coverage for your car’s repairs in case of an accident. State law requires consumers to carry car insurance to protect you and other drivers in the event of an accident. Simply put, car insurance provides you with the financial clout required when your car ends up in an accident putting you in an unfortunate situation.
There are at least three kinds of car insurance: comprehensive insurance, collision insurance, and liability insurance. Depending on the circumstances that caused your car’s damage, it’s wise to understand how each of those kinds work to your benefit. Each company will offer different payment terms and options for purchasing coverage making it affordable.
- Comprehensive Insurance – Pays for fortuitous circumstances (i.e. natural disasters, damage from falling objects)
- Collision Insurance – Pays for accident-related damage
- Liability Insurance – Paid by the party that crashes into your car
What Are The Key Differences?
Again, car insurance vs car warranty they are not the same thing – each has specific peculiarities that, while ultimately providing for your car’s protection, are rooted in technicalities. To make sense out of the benefits both provide, it’s essential to pinpoint what exactly makes them different from one another.
Legal Obligation – Whereas a car warranty could both come in the form of factory coverage or you could purchase an aftermarket extended warranty, a car insurance is a legal necessity for any car owner. Sure, a car warranty may cover for your car’s bumper-to-bumper defects within its validity, but a car insurance works best for crashes and other unexpected damage brought forth by external elements.
Both accident and non-accident-related damage tend to be costly, and it also concerns the lives of the people involved. That’s where car insurance enters – its coverage answers for both your car’s repair and the medical expenses of any person that incurred physical damage resulting from the car’s damage.
Thus, the necessity of making a car insurance a legal obligation lies on the costly circumstances a car’s damage in relation to the persons and property involved. Without ample financial clout for damages to persons and property arising from the car’s damage, greater difficulties would arise in terms of exacting accountability due to sheer costliness.
Nature of Damage – A car warranty is different from a car insurance simply because the former pays greater attention to the manufacturer’s accountability in ensuring that your car runs properly. If the damage is connected to manufacturing, your car warranty can get your car covered for free parts replacement.
Events beyond your control that cause damage to your car fall under the protection car insurance provides. Do note that without a car insurance, you’ll risk having to shell out a large sum of money all at once to pay for your car’s damage. Premium payments, in that sense, serves you with great convenience – you get to pay periodically for the opportunity to get instant repairs.
So, Should You Get Both?
Given the differences, it’s essential that you get to have both a car insurance and a car warranty – one can cover for the other’s shortcomings, and that’s certainly a worthy investment for when you want to provide lasting protection to your car. Moving forward, the choice to set your preferences related to the two rely on your well-informed wisdom.