Knowing the difference between an extended vehicle warranty and car insurance is important so you can make sure you have the right kind of protection and coverage for your needs. If you don’t understand the difference, you could find yourself in trouble later on when you need a certain type of coverage that you thought you had but didn’t!
Although in principle, there are some similarities between an extended vehicle warranty and car insurance, they are quite different. The main similarity is that they are both designed to help pay for repairs to your car in certain situations. On the other hand, the key difference is that car insurance is required in most states across the U.S. while an extended vehicle warranty is completely voluntary. Another important difference is in the purpose of each type of coverage. The main purpose of car insurance is to help pay for damage to your car from a car accident, theft, fire, etc., while the main purpose of an extended vehicle warranty or similar coverage plans is to help cover the cost of vehicle problems due to equipment or mechanical breakdowns.
What Does Car Insurance Include?
To better understand the differences, let’s take a deeper look at what car insurance coverage can include in addition to the collision and comprehensive coverage mentioned above. A car insurance policy can also include:
- Liability coverage: This helps pay for medical bills or damage to property for someone else when you’re at fault for an accident.
- Uninsured or underinsured motorist coverage: This extra coverage can help pay for repair and/or medical bills if you have an accident with an uninsured or underinsured driver.
- Medical payments coverage: If you or your passengers are injured in a car accident, this coverage pays for your medical expenses.
- Personal Injury Protection: Also known as no-fault insurance, covers some of your medical bills from car accident-related injuries.
What Is Covered Under a Vehicle Warranty?
First, the vehicle manufacturer is the only one that can sell a warranty or legitimately extend your auto warranty. You can buy a true extended car warranty through the manufacturer directly or sometimes, from an authorized dealership.
Other plans that can provide similar coverage are vehicle protection plans such as mechanical breakdown insurance, or vehicle service contracts. Any plan sold by an independent provider is one of these, and often, the plans sold by dealerships are too.
Regardless of the plan you purchase, vehicle warranties and vehicle protection plans pay for part of certain repairs and problems after the original manufacturer’s warranty is expired. Coverage can vary from basic powertrain plans to more comprehensive coverage depending on your vehicle, mileage, and state of residence. Vehicle protection plans typically include additional features and benefits like roadside assistance, rental car reimbursement, and more.
The Benefits of autopom!
If your extended vehicle warranty has expired and you are looking for a way to get back under coverage, it’s time to consider autopom!
autopom! has an excellent reputation in the industry and offers many different plans at competitive prices. Plus, when you get a vehicle protection plan from autopom!, you get much more than just repairs. Check out some of the great features and benefits that autopom! offers and then give us a call at (800) 724-8141. Our agents will be glad to help!
