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

While car insurance and car warranties may seem similar, in actuality they offer widely different types of coverage. Curious to learn about the types of coverage offered by each? Then read on to learn about the coverage differences between auto insurance and car warranties.

Car Insurance

At the most basic level, car insurance is designed to offer financial protection for the policyholder in the event that they cause property damage, bodily injury, or other losses to another party. However, there are other insurance options that offer coverage for the policyholder’s own medical treatment and repairs.

Car Warranty

Car warranties can be offered by your insurance agent or dealerships for new vehicle purchases, however, warranties offered by your insurance agent can often be less expensive than what dealerships offer. It is good to check with your insurance agent before buying a new car to possibly get a quote. Then you can compare pricing and warranty coverages.  In the simplest terms, a warranty is essentially a manufacturer’s guarantee that the car will operate as advertised. They typically only provide coverage for mechanical or other internal issues stemming from the manufacturer.

Major Differences

To start, drivers have to secure their own car insurance coverages. However, this coverage is ongoing; so long as they continue to pay their premiums, the policyholder will have the coverage that they need. Car warranties often come standard on new cars; however, the coverage they offer can be limited. The coverage expires once a certain number of years or miles is met. Another major difference is that auto insurance offers coverage for what might happen to your vehicle due to the actions of other drivers and other parties. Car warranties only offer coverage for the car that it is issued on. Finally, auto insurance policies offer coverage for damages caused by vandalism, theft, fire, extreme weather, and most often collision due to accidents. Car warranties only offer coverage for the issues associated with mechanical breakdown, malfunction, or other internal issues most often resulting from a manufacturer’s mistake.

These are the main differences between car insurance and a car warranty. Do you want assistance with securing the right auto insurance coverages to meet your needs? Then don’t hesitate to contact the experts at Randy Jones Insurance Services in Pleasanton, California. We are ready to get you covered today.