Before we find why Car Warranty Insurance is important, it is necessary that we know the difference between car insurance and car warranty. While these might sound similar in meaning, the truth is they are quite different with different purposes. When one is buying a car, terms like car insurance and car warranty are commonly used. But do we actually know their meaning?
Yes! It is absolutely true that both these services are meant to provide protection to the customers while their car is on road, but they have significant differences, and they cover different fields.
In this article, we learn more about both of these and also find why they are important.
Just like the warranty on different products, a car warranty also means that the car company guarantees its customers that there will be no manufacturing defects in the product. In case, any kind of problem is reported during the warranty period, and the company takes complete responsibility to replace any part that is necessary for the proper functioning of the car in question.
Different car manufacturing companies have different terms and conditions for warranties; however, the basic components that are covered remains the same for each one of them. A comprehensive car warranty will cover:
- The engine
- Cooling system
- Transmission system
- Fuel and ignition system
- Non-frictional clutch
- Parts of brake system
The car warranty can get the customer a free auto repair after getting the car repair estimate online.
It is important to mention here that an auto repair payment plan is different from car warranty or mechanical breakdown insurance (MBI). The customer must learn the differences before making a final choice for himself.
A car insurance policy helps the policyholder to cover any kind financial losses resulting from any unseen damages on the road. In this respect, it is very similar to a life insurance policy. Unlike a car warranty, car insurance covers not just the car, but also its driver. An insurance cover will cover financial losses arising from thefts, fire damages, accidents and collisions, vandalism or natural factors such as flood or earthquake.
If there is a road accident and the car is insured, the insurance policy will cover all the hospital bills and also provide compensation in case of death.
While car warranty is provided by the manufacturer of the car himself, car insurance is provided by stand-alone insurance companies like Aviva car insurance. They provide the best price car insurance to their customers. Such insurance companies have their own terms and policies, and it is always advisable to understand each one of them clearly before you decide the best one for your car.
The car warranty insurance is a matter that needs a lot of market research before making any decision. It is good to be aware of all the risks that are associated with any of the choices.