Auto Warranty vs Auto Insurance: How Do They Differ?
If your automobile is covered by a warranty, it could assist you to pay for certain issues, such as mechanical breakdowns. This is not covered by your auto insurance policy. It’s important to know that your car insurance and warranty offer very different kinds of protection.
It’s important to understand the distinctions between auto insurance and a vehicle warranty, as well as the items that each serves to cover, if you’re looking to purchase a new or used automobile. Auto warranties and car insurance vary in the protection they give. A vehicle warranty covers mechanical failures, parts, and labor. Car insurance may cover car repairs after a natural disaster, theft, accident, or fire.
What Does a Car Warranty Cover?
There are two sorts of warranties: a new-car warranty from the manufacturer and a used-car or extended warranty from the manufacturer or a third-party provider.
A new automobile warranty refers to the manufacturer’s pledge to pay for replacement components or covered repairs within the warranty term. This warranty is normally included with your automobile. New car warranties may range from three to 10 years or 100,000 miles. You should read your warranty documentation carefully to understand what’s covered.
New automobile warranties include two sections:
- Bumper to Bumper Coverage: This usually includes electronics and A/C. Unfortunately, it won’t cover wear and tear items like brake pads or tyres.
- Powertrain Coverage: Covers the engine and gearbox.
You may buy an extended warranty to protect your new or used vehicle for a longer period. Manufacturers or third parties may issue these guarantees. But extended warranties usually don’t cover wiper blades, brake pads, or tyres. Your warranty may demand a deductible before covering repairs. Warranties also don’t cover oil changes and fluid top-offs. No warranty excuses you from maintaining your car. You should repair your automobile at all specified intervals and record keeping of any maintenance done.
What Does Car Insurance Cover?
Auto insurance may pay for damage caused by an accident, fire, or theft, but it rarely pays for problems with the car’s engine or equipment. Car insurance may cover more than just vehicle damage.
The following types of coverage are usually included in auto insurance:
- Personal Injury Protection: This may compensate for vehicle accident injuries.
- Liability Coverage: pays for someone else’s medical costs or property damage from an accident you cause.
- Collision Coverage: pays for damages if your automobile collides with another vehicle or object.
- Comprehensive Coverage: May help repair or replace your automobile if destroyed by fire, theft, vandalism, striking a deer, or falling debris.
- Uninsured/Underinsured Driver Coverage: Helps pay expenses if you’re struck by a driver with insufficient or no insurance.
- Medical Costs Coverage: provides compensation for vehicle accident injuries.