Aug 16 What’s the Difference Between Car Insurance and Car Warranties?

What’s the Difference Between Car Insurance and Car Warranties?

Here’s what separates a car insurance policy from a car warranty.

While car insurance and car warranties both offer auto protection, the type of protection they offer differs widely. Curious to learn more about what separates these two coverage options? Here are some of the major differences between a car insurance policy and a car warranty.

Car Insurance

Car insurance is designed to offer the policyholder financial protection in the event that they are responsible for causing third-party injuries, damages, or other losses. There are also insurance options that allow the policy holder to secure coverage for their own medical treatment and repairs. While you do have to secure your own car insurance coverage, this coverage is ongoing. So long as you pay your insurance premiums, you will have the coverage that you need. When you get coverage for your own vehicle, it offers protection for the damages caused by external events such as a collision, vandalism, break-in, fire, extreme weather event, and so on.

Car Warranty

Car warranties are generally issued on new cars by the manufacturer. Essentially, they are the manufacturer’s guarantee that the vehicle will operate as promised. Car warranties only offer protection for the vehicle they are issued on and this coverage is limited in scope. To start, warranties have an expiration date; coverage will expire once a certain number of years or miles is met. Additionally, warranties only offer coverage for internal, mechanical issues with the car. For instance, they only offer compensation for mechanical breakdown, malfunction, or other internal issues with the car that can be attributed to the manufacture’s oversight.

This is what separates car insurance from car warranties.  Interested in securing the right auto insurance protections for your vehicle?  Then don’t hesitate to contact the experts at Weeks & Associates Insurance Services in Thousand Oaks, California.  We are ready to assist you with your coverage needs today.

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