Car warranty versus car insurance
Updated: Jun 6
What is the difference between my car's warranty and insurance policy? Mike Goodman here, agency principal at Goodman Insurance Solutions. Today, I want to address the difference between the two and what each product is designed to do.
So put, your car's warranty is designed to protect you as the consumer up to a certain period or many miles. That is usually against what that manufacturer expected that vehicle to do. So if the engine goes out, the transmission goes out, maybe heating and cooling or electronic systems within the car. If those things fail before they are expected to be good enough, then often, that manufacturer will guarantee that they will replace those types.
Now, on your vehicle insurance policy, what that policy's going to do is to protect you against damages that you could do to someone else. Whether that be damages to their vehicle or damages to them as the driver or passenger, if you decide to buy comprehensive collision coverage for your car, you will have protection for comprehensive things, maybe like a hail storm. Maybe you are driving down the road at night and have a deer run out in front of you. Maybe you have a rock from the roadway that hit you.
Then on the collision side of things, maybe you run into another vehicle and are at fault for that accident. Then obviously you have protection not only for damages to the other person's car and your own. Or maybe you just run into another form of property. So often, we get the question of, "Hey, my engine went out, and my transmission went out. I had maybe even a tire blowout." Different electronic things maybe go out simply for wear and tear that will not fall under those causes of loss, such as comprehensive and collision. Because those things just went out over time because of normal wear and tear.
So I hope I cleared up the difference between the two. If you've got further questions, feel free to contact us. You can reach us any time at 620-531-0261 or find us on most social media platforms. Thank you.