Car insurance and car warranties are often confused as being the same thing, but they couldn’t be more different.
Car insurance and car warranties are things that will pop up when you are purchasing a new car–whether it be new or old. Many people view these two coverages as the same thing when in reality, though, both of these services cover two very different and separate items that, when purchased together, give you complete protection on the road. Here are the main differences between car insurance and car warranty you should know to give you full protection when you hit the road.
Car Insurance
Possibly the biggest difference between a warranty and car insurance is that you are legally obligated to carry auto insurance if you own a car. Car insurance will help cover the financial costs of a complete repair or replacement after an accident. In addition to covering traffic accidents, it also covers the medical bills associated with bodily injury to you and the other person, along with covering any damage done to property (be that the car, or a fence, or a house). Insurance also covers damages that don’t involve a traffic accident like vandalism, fire, flood and earthquake damage, and things like tree branches falling and cracking your windshield.
Car Warranty
Like most products we use, cars come with a period of warranty in which the manufacturer “guarantees” that the car will be in proper working order. If there are some faulty issues that are directly correlated with manufacturing, the manufacturer will replace the parts it deems necessary for the car to function properly. Your insurer can offer extended warranties that will protect you from expensive breakdown costs, but it is an optional coverage.
Being covered with the right auto insurance is important so that you are insured for events that may or may not be out of your control, and have some financial safety net to not pay out of pocket. For more information about how we can protect you on the road, contact Lou Aggetta Insurance Services in Pleasant Hill, California today.