If your car carries a warranty, it might keep you secure against specific issues with your vehicle — which are wholly separate from what your auto insurance policy covers. It’s essential to realize that your auto warranty and your auto insurance are two altogether different sorts of safeguards for your vehicle. It’s great to compare and contrast between the two and see how they complete one another so you’re not confused in the event that you have to use one of them or utilize both together.
What Does a Car Warranty Cover?
There are two main different types of warranties : new car/factory warranty, issued by the vehicle manufacturer, and an extended warranty or vehicle service contract,that you might have purchased from either your auto dealership or a third party organization.
A Manufacturer’s warranty is the auto maker’s guarantee to pay for new parts or secured repairs amid your predetermined warranty period, as indicated by Kelley Blue Book. This guarantee is normally naturally incorporated into the underlying expense of your auto. As indicated by Edmunds, new auto guarantees can last from three years or 36,000 miles to 10 years or 100,000 miles. Exactly what is incorporated into these warranties can differ from organization to organization, so it’s imperative to shop around and do thorough research on a provider before signing up for coverage.
New car warranties for the most part comprise of two sections: a “bumper to bumper” warranty that includes everything from your car’s high-tech gadgets to its internal ventilating framework. However, it should be noted that this manufacturer’s warranty ordinarily won’t cover wear and tear items or items deemed maintenance items. These items can include tires, windshield wipers, brake pads, and more.
The other warranty that most manufacturers provide is the “limited powertrain warranty.” This coverage generally covers the car’s most important internal working parts, such as the engine, transmission, and drive axle.
A vehicle service contract – commonly referred to as an extended warranty, is a policy you can purchase to extend the length of your vehicle’s factory warranty to cover the cost of auto repairs. These warranties might be offered either by the dealership where you purchased your car or a direct, independent provider. Similar to the manufacturer warranty that originally came with the vehicle, you may find that a portion of the things that ordinarily wear out on cars (wiper blades, tires, brake pads) are not covered with third-party plans either. These are considered maintenance items as well.
And these protection plans also do not pay for routine upkeep, like oil changes or fluid top-offs. And proper maintenance is key to not only maintaining your vehicle, but to ensure you do not void any warranty coverage. The Federal Trade Commission (FTC) suggests keeping great records of all the work that has been finished, in case your warranty provider should need it.
How is Car Insurance Different?
Car insurance pays for harm to your car that is the aftereffect of an auto collision or some other cause, like a fire or burglary. Your auto insurance policy does not cover auto repairs, commonly referred to as mechanical or electrical breakdowns.
Car insurance may likewise cover a great deal more than just if your car is in a car accident. Consider the accompanying inclusions that are ordinarily accessible on a car insurance policy:
– Liability coverage: May pay for another person’s doctor’s visit expenses or harm to their property (their car or house), that was determined to be your fault.
– Collision coverage: May compensate to repair or replace your car if it’s harmed in an impact with another car.
– Comprehensive coverage: May pay for harm to your car brought on by things other than a crash, for example, fire, burglary, vandalism, hitting a deer, or falling articles.
– Uninsured or under-insured driver coverage: May pay for harm to your car in the case you’re hit by a driver with deficient insurance or no insurance at all.
– Medical installments coverage: May pay for medicinal expenses to you and travelers in your car in the event of an accident.
– Personal Injury Protection (PIP): May pay for doctor’s visit expenses in the event you are harmed in a car collision. (Not accessible in all states.)
Mechanical breakdown insurance or extended warranty?
Very similar to extended auto warranties, mechanical breakdown insurance is sponsored by insurance organizations, which are directed by state insurance divisions. These insurance divisions create insurance premiums that work like your auto insurance, but are for mechanical or electrical breakdowns. These are generally month-to-month plans and they are priced higher than vehicle service contracts because a customer is able to stop paying at any time.
Mechanical breakdown insurance companies and vehicle service contract providers approach this coverage with more adaptability. While extended auto warranties sold by dealerships or automakers force you to take the car to their approved dealerships or mechanics, you are able to take your car to any certified mechanic with a VSC.
You can purchase a vehicle service contract from a third-party provider listed on our website or your local dealership. Though by going direct to a provider, you will eliminate the middleman and save more on your protection plan. You can likewise purchase one of these plans independently through some banks and local credit unions.
Additional Protection: Roadside Assistance
Alongside your car warranty and auto insurance, another “security net” you might need to consider is roadside assistance. This sort of program is available to subscribers should they ever need immediate and emergency assistance while on the road. This service can include towing your car to the nearest repair facility, recharging your battery if it dies, onsite punctured tire repair, and more.
While there are many well-known providers of roadside assistance, like AAA, these companies charge a monthly fee to use their services. In most cases, when you purchase a vehicle service contract, also known as an extended auto warranty, you will receive 24/7 roadside assistance at no additional cost. This further highlights the importance of a vehicle service contract and the safety net for your vehicle it can provide.
When people search for an extended auto warranty, oftentimes they believe that they are buying a type of insurance. While the two are comparable, they are also very different. We field this question numerous times each and every day. Insurance is there to shield you from the outside issues that can affect your car like other drivers’ mistakes or inclement weather. While vehicle service contracts – also known as extended auto warranties will assist when your car breaks down over time.
Truth be told, many states have legislation making it illegal to drive without car insurance. Be that as it may, extended warranty coverage could help save drivers thousands of dollars on car repairs and can end up being just as helpful. You never know when, where, or why your vehicle is going to break down, be prepared when it does. By having auto insurance and an extended car warranty you are totally protected on the road!