If I Have a Car Warranty Do I Still Need Car Insurance?

You need to know the differences between car insurance and a car warranty to ensure that your vehicle and your family are adequately protected.  Although both types of protection are important, they differ in some important ways.

Knowing what type of coverage you have before driving your vehicle is essential to ensuring your safety and that of your family.  Here are some of the main differences between car insurance and a car warranty that you need to know.  

Types of Car Warranties and What They Cover

Generally, there are two types of car warranties: a new car warranty and a used-car extended warranty.  

New car warranty – Also known as a factory or manufacturer’s warranty.  This warranty ensures that the manufacturer will help pay for the cost of replacement parts or repairs during a specified period. It covers breakdowns caused by wear and tear of parts, manufacturer defects, and other issues besides accidents.  A warranty is included in the initial cost of the car and can last from 3 years to 10 years. 

New car warranties consist of two main parts:

  1. Bumper-to-bumper coverage includes electronics and the air conditioning system.  Does not cover wear and tear of tires, brakes, etc.  
  2. Powertrain coverage covers the vehicle’s engine and transmission.

Used-car extended warranty – This warranty is an optional plan that you must pay for.  It will help cover the cost of parts or repairs.  Of course, there are many warranty scams, so it’s important to choose a reputable company.  A used-car warranty often requires a deductible with every claim.  Typically, extended warranties don’t cover things like the wear of wiper blades, tires, brake pads, belts, or rotors.  

Some things to look for in an extended warranty to make sure you’re getting the best deal for your money:

  1. Can choose the repair facility yourself
  2. Affordable payment plans
  3. Roadside assistance
  4. Free tire rotations and oil changes
  5. Can cancel without penalty
  6. Unlimited claims
  7. Customizable plans
  8. No third-parties involved

Each manufacturer offers different benefits in their warranty, so be sure you read the documents and understand what is covered.

What Does Car Insurance Cover?

Unlike a warranty, car insurance doesn’t pay for mechanical or equipment problems.  Car insurance pays for damage to your vehicle in the event of a collision or other accident.  Automobile insurance also pays for more than damage to your vehicle, including:

  • Liability coverage – Pays for someone else’s medical bills or damage to someone’s property incurred during an accident you caused.
  • Collision coverage – Pays for repairs to your vehicle if it is damaged in a collision with another vehicle or object.  
  • Comprehensive coverage – Helps pay for repairs or damages caused by a covered event such as vandalism, fire, theft, hitting a deer, or falling objects.
  • Uninsured or underinsured motorist coverage – Pays for damages caused by a driver who is not adequately insured or has no insurance.
  • Medical payments coverage – Helps pay your expenses for injuries to yourself or passengers.
  • Personal injury protection – Known as no-fault insurance, this coverage helps pay medical bills if you are injured in an automobile accident.  However, this coverage is not available in all states.

Considering the differences in coverages offered by a car warranty and car insurance, it’s a good idea to have both.  Of course, automobile insurance is required if you want to drive your vehicle on America’s highways.  Although warranties are not mandatory, they are financially beneficial.

You may also want to consider additional protection such as roadside assistance if it’s not included in your warranty.  Roadside assistance will help pay to tow your vehicle if it breaks down.  It also provides other services such as flat-tire repair or battery charging.

Breakdown of Warranty vs. Car Insurance Differences

Car Warranty Car Insurance
Length Typically 3 years Renewable every 6-12 months
What It Covers Parts that breakdown due to wear and tear, extreme heat and cold, vehicle recalls, mechanical defects, poor maintenance Property damage or injuries to yourself or others if you cause an accident
Not Covered Routine maintenance, tire rotation, brake pads, and oil changes Mechanical breakdowns caused by wear and tear or manufacturer defects
When You Can Purchase After your new car warranty expires, you can purchase an extended warranty Auto insurance can be purchased at any time
Where to Buy It Warranties are available from the manufacturer, a dealership, or a third-party vendor Auto insurance can be purchased online, by phone, or through an insurance agency 

Find Trustworthy Car Insurance at Affordable Rates with Sandifer Insurance Agency

While an extended warranty is optional, car insurance is mandatory.  If you are still unsure whether you need both a car warranty and automobile insurance, contact Sandifer Insurance Agency to learn more.  Our agents will help you determine the best options for your needs.

We are a family-owned business with over 40 years of experience in the insurance field.  If you are looking for insurance with a reputable company, we are the right choice.  Reach out to us by phone, online, or drop by our office near historic downtown Cheraw, SC today.


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