Car Insurance vs Car Warranty: Are They the Same Thing?
Car insurance vs car warranty: one covers theft and accidents, the other only the engine and parts. Compare coverage, term and cost before you decide.
For high-value cars, the best car insurance is the most fitting form of protection. The reasoning is simple: it guarantees compensation for losses if a risk ever hits the vehicle.
Sometimes, though, people rely on a car warranty alone. Their reasoning may be that insurance premiums are unaffordable or that the paperwork is a hassle.
So what is the real difference between the best car insurance and a car warranty? Don't both offer protection for your car?
Motor vehicle insurance, or car insurance, is available after you first register with an insurance company. In other words, protection starts after the customer buys the policy and pays the premium regularly every year.
A car warranty comes automatically when you buy a (new) car, so protection starts from the day of purchase. Where insurance issues a policy, a car warranty comes with a purchase receipt and a form to fill in with your personal details. You are then given a warranty card for filing claims.
The next difference between car insurance and a car warranty lies in the protection each one provides. Car insurance comes in two options: all risk insurance and Total Loss Only (TLO) insurance.
All risk covers every risk, including theft and accidents that leave the car with heavy or light damage. TLO covers the car when the repair cost is above 75% of the car's price.
A car warranty, by contrast, protects only the engine and spare parts. It does not cover the risk of theft. In general, a warranty gives only free servicing, repairs (excluding replacement of parts) and free oil changes for a set period.
Last are the time frame and cost. Car insurance has no fixed term. Protection continues as long as the customer pays the premium every year. The premium is agreed between the parties but usually depends on the car's price and age.
A car warranty, meanwhile, usually runs for a limited period, at most 3 to 5 years. During that time the customer pays nothing unless parts need to be replaced.
You can get a car warranty straight from the dealer or showroom, but where can you buy the best car insurance? At JAGAIN, of course. JAGAIN.COM is a professional insurance broker where you can buy any insurance product online.
More Interesting Articles:
