Leadway Auto: Difference Between Car Warranty and Car Insurance
A warranty is a formal guarantee offered by a manufacturer to the purchaser of a product, pledging to repair or replace it if necessary within a set time frame.
Warranties usually target wear and tear or mechanical failure. Insurance, on the other hand, focuses on unexpected and unintentional risks.
This article delves deeper into the differences between car warranty and car insurance.
What is Car Warranty?
A car warranty is a commitment made by a manufacturer or dealer to fix or replace flaws in your vehicle or to guarantee that it will be of specific quality for a period of time.
It is a vehicle service contract in which the provider commits to repair items that have been damaged owing to flaws in the manufacturer design or installation. Warranties do not cover every eventuality.
What is Car Insurance?
Car insurance protects you from financial damages if you are in an accident or your car gets damaged in any manner.
A car insurance coverage will pay for damages to your vehicle in the event of an accident, theft, vandalism, or natural catastrophe.
People pay annual payments to an insurance company, which then covers all or most of the costs connected with a damage or loss.
The extent of the cover depends on the agreement between both parties.
What does Car Warranty cover?
If you need to solve a problem with your car, a car warranty will cover the repair costs.
It often covers the engine, transmission, suspension, brakes, and steering. Specifics may vary depending on the policy.
It protects you against flaws or damage due to regular use not normal wear and tear.
Behind the warranty, it is advisable to replace damaged components with new or reconditioned parts at the firm's discretion.
What does Car Insurance cover?
This is dependent on the contract between you and the insurance company. There is comprehensive car insurance that covers both your car and the car of the third party.
There is also third-party car insurance that covers damages only to the third party.
Some insurance companies also offer hybid plans that cover a percentage of damages to your car and that of third parties.
Learn more about the differences between comprehensive and third party car insurance. Difference Between Car Warranty And Car Insurance
Here are the differences between car warranty and insurance:
Is Warranty the same as insurance?
No. Warranty covers wear and tear or mechanical breakdown, but insurance covers unexpected and unforeseeable hazards.
What is the difference between insurance and extended warranties?
In an accident or incident, an auto insurance policy will provide coverage. An extended auto warranty covers the breakdown and repair costs excluded by motor insurance.
Do warranties cover accidental damages?
No. Warranties typically cover just product faults and do not cover abuse or intentional damage.
Bottom Line
Although they both cover risks, having a car warranty and having auto insurance are very different.
Looking to buy insurance for your car?
Leadway Auto Insurance guarantees a range of benefits for any level of cover you purchase on your vehicle(s), from comprehensive motor insurance to third party.
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Source: Legit.ng
