30 Aug 2018
The Difference Between Car Insurance and Car Warranties

Learn what separates auto insurance from a car warranty.

While auto insurance and a car warranty are both designed to offer protection, there are some significant differences between the two. Curious to learn what each type of coverage entails? Here are some of the major differences between a car insurance policy and a car warranty.

Auto Insurance

At its core, auto insurance is designed to offer financial protection in the event that the policyholder causes bodily injury, property damage, or other losses to a third-party. However, there are other insurance options that also help the policyholder address their own medical and repair costs following an auto accident or other damaging event. Here are some of the main highlights of auto insurance:

  • Car owners secure their own insurance coverages.
  • Coverage is continuous; so long as your pay your premiums, you will have the coverage that you need.
  • Coverage extends to other drivers/individuals that you might have affected while operating your vehicle.
  • Insurance offers coverage for damages stemming from collisions, vandalism, theft, extreme weather events, and other external conditions.

Car Warranty

Car warranties are generally issued by car manufacturers on brand new vehicles. Warranties essentially operate as a guarantee that the car will function as promised. Warranties are designed to cover only the car they are issued on and only offer coverage for unavoidable, mechanical breakdown. Here are some of the main highlights of a car warranty:

  • Warranties come standard on new cars.
  • Warranties only offer limited coverage; they offer protection that will expire once a certain number of years or miles is reached.
  • Coverage is only for the car it is issued on; it will not protect other vehicles.
  • Warranties offer coverage for mechanical breakdowns and issues occurring within the car itself. They only offer compensation for damages or malfunctions to the car resulting from a manufacturer’s error.

These are the main differences between car insurance and a car warranty.  Are you looking to secure the right auto insurance to meet your needs?  Then turn to the experts at Patterson & Associates in Richardson, Texas.  Contact our dedicated team to get covered today.