Learn what differentiates an auto insurance policy from a car warranty.
While car insurance and car warranties are similar in that they both offer car protections, the type of coverage that each offers differs considerably. Interested in learning more about what differentiates auto insurance from car warranties? Then here are some of the most striking coverage differences.
Car insurance is mainly designed to offer financial protection to the policyholder in the event that they have caused third-party injuries, property damage, or other losses. However, there are additional insurance options that will offer coverage for the policyholder’s own medical treatment and repairs.
Car warranties are normally issued by auto manufacturers of brand-new cars. Essentially, a warranty is a guarantee that the vehicle will operate as promised. Warranties only provide coverage for mechanical malfunctions that prevent the car from functioning as advertised.
While you do have to secure your own car insurance coverage, this coverage is ongoing. So long as you continue to pay your premiums, you will have the coverage you need. In contrast, car warranties come standard on new vehicles. However, their coverage is limited; coverage will expire once a certain number of years or miles is reached. Another important difference is that car insurance will extend coverage to other parties that might suffer losses as a result of an accident you cause. A car warranty will only cover the car it is issued on. Finally, car insurance will cover external damages such as those caused by accident, vandalism, theft, an extreme weather event, and so on. Car warranties will only offer coverage for mechanical breakdowns or internal operating issues within the car.
These are the main differences between car insurance and car warranties. Looking to secure the right auto insurance coverage to address your needs? Then contact the experts at Gant Insurance Agency in McKinney, Texas. We are ready to assist you with all your coverage needs today.