A car warranty can help you fix your damaged car just like a car insurance coverage, but that is where the similarity ends. There are many things that an insurance coverage can do that a car warranty can do, which is why you need insurance services even with an extended warranty. Don't forget the following truths:
Warranty Doesn't Cover Accidental Damages
As a rule, car warranties are meant for unforeseen mechanical problems, and not accidental damages. For example, if you buy a car and its brakes prove defective, the warranty may pay to have the brakes replaced. However, if you buy a car and damage the radiator in a head-on-collision, the warranty isn't likely to replace it. In such a case, your best bet is to file an auto insurance claim.
Warranty Doesn't Include Liability Protection
Your warranty will not come to your rescue if you are accused of causing an accident and damaging another person's property or injuring another person. If you only have a warranty, you may have no option but to use your personal assets to settle the accident victims' damages. However, this is one of the things that car insurance cover; at least the liability coverage portion of it. This is why auto liability coverage is required by the government.
Warranties Don't Cover Certain Parts of the Car
You should also know that your car warranty may not cover certain parts of your car. The body panel is the most excluded part of the car when it comes to vehicle warranties. Therefore, don't expect your car warranty company to help you fix the door if it doesn't close properly. However, your car insurance company may pay for the repair depending on what caused it and the type of coverage you have.
Warranty Doesn't Cover Injuries
Another thing you should know is that car warranty is only for the actual car, and nothing else. This means that your car warranty won't help you if you are injured in a crash or you injure someone in a collision. In fact, the car warranty company won't even bother finding out what caused your injuries because it doesn't pay for all injuries – period.
Warranty Doesn't Cover Theft
Lastly, you should know that your car warranty doesn't cover theft too. Therefore, even if your car is stolen a few minutes after leaving the dealership, your warranty won't be of any help to you. However, comprehensive car insurance may help you get a replacement car if the stolen one isn't found.