Extended Car Warranty vs Car Insurance
The most expensive accessory we will ever buy in our life is probably a car. Indeed, unlike a house a car is a complete liability, and protecting the value of our expense requires us to take some necessary steps.
There are many ways in which our car can be harmed - theft, fire, road accident, sudden malfunctioning, expensive tire or engine give out, and a lot more.
The auto warranty services are one of the most common things car companies will offer you to protect your vehicle. On the other hand, we also know that getting car insurance is vital. So, what is the difference?
Key Differences Between Car Insurance and Car Warranty
Do you need a Vehicle Warranty when you have car insurance? Yes, because these two things are not the same. Here are the five key differences between these commonly misused terms.
Coverage Purpose
Insurance is like having a safety net in case something bad happens. Warranty on the other hand is like having a promise that the car will work right for a given period.
Car insurance helps pay for repairs or medical bills if you're in an accident, regardless of whose fault it is. This way you can get some value out of your negative experience and don't have to go through that big of a financial distress.
Car Warranty simply covers repairs and replacements for parts that break down due to normal use, like a faulty engine or transmission. There is no concept of accident or disaster here.
Types of Damage Covered
Insurance companies do not give you any money unless there is some negative experience you have faced in your vehicle on the road.
It can be claimed in the case of accidents (even if it's your fault); damage from natural disasters (like hurricanes or hail); theft, burglary, or vandalism; medical bills if someone is hurt in an accident, and lastly, legal fees if you're sued after such an accident.
A car warranty can be a basic one that is provided by the car company itself and an extended car warranty that includes additional features like checking and troubleshooting for problems, repairing and replacing parts like brakes and tires, etc.
Car warranty doesn't cover driver error or damage from accidents or natural disasters. It will also not give a single penny for maintenance or wear and tear over time.
Duration of Coverage
Once you have bought car insurance, it will not go void unless you stop renewing it. This means that as long as you keep entering a sum of money every 6 months to 1 year, you will have car insurance.
On the other hand, a car warranty is given on a vehicle for the first 3 to 5 years of you owning it. After that, it becomes void because manufacturers cannot provide you a warranty for the natural breakdown of car parts that are bound to happen as you continue to use them.
Last Words
As commonly noted in Carchex Warranty Reviews, a good warranty service does not try to run away from its responsibilities based on some technicality. The main role of these services is to assist the user when certain car parts do not live up to a minimum period of good performance. So, if you select your warranty from a trustable source it will provide affordable double-layer coverage to the car insurance you already have. And the same goes for a good insurance company because it can protect you against disasters outside your control.