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What is the difference between a car warranty and car insurance?
They seem to cover similar things. What exactly is the difference?
Emily Richey · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
A car warranty is the vehicle manufacturer’s promise to replace parts or cover repairs for a certain period of time. Typically, the warranty cost is tacked on to the price of your vehicle. Read your warranty documents to find out what your warranty covers and for how long.
Car insurance covers you in the event of an accident or damage, though different types of insurance cover different scenarios. Some coverage types protect other people, while other coverages protect your vehicle or address your medical bills. Unlike a warranty, car insurance usually doesn’t cover mechanical problems. “
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