Vehicle Warranty vs Regular Insurance. Which is better? | RenewBuy

Vehicle Warranty vs Regular Insurance. Which is better?

It is always wise to understand what coverage and protection we have for vehicle early than to be unfortunately surprised with anything later. Vehicle Warranty and regular car insurance are similar in the way of offering financial aid when faced in an unfortunate situation like repairs or accidents. But both are different from each other. Auto Insurance is something, which is mandatory, but that is not the case with vehicle warranty. One may or may not take a Vehicle warranty Regular Insurance not only helps financially for the vehicle but also gives financial support to the persons involved in the accident.

On the other hand, vehicle warranties help you to claim in case of repairs which are not caused due to external forces. It might be due to any false wiring or any manufacturing defects. These are usually valid for a specific period from the purchase and a specific number of miles coverage.

Vehicle Warranty vs Regular Insurance. Which is better?

Warranty is similar to a product and is usually given alongside the vehicle. When a customer faces a problem like some repair in the vehicle or some manufacturing defect, the vehicle warranty comes to use. It helps to fix the issue without any cost. Some vehicle warranties may be specific for a certain period or certain miles and might even cover only certain parts of the vehicle. So, make sure that you go through your warranty completely before purchasing it.

Car Warranty is of 2 different types:

  • New Warranty
  • Extended Warranty

New Warranty

It is usually purchased during the purchase of a new vehicle. Most common forms of this warranty come inclusive in the package along with the car and might have an approximate duration up to 10 years, with coverage of 100,000 miles. This warranty also has two segments in them:

Bumper to Bumper: It mostly covers electronics in the vehicle like the audio system etc.

Power Train: This covers any issues related to the engine or any transmissions.

Extended Warranty

Extended warranty is something that you could buy to extend the warranty of your owned vehicle, which might be your new vehicle or a used car. Your vehicle manufacturer generally gives warranties. In case if a repair, you are required to pay the deductible after which the warranty begins to pay out the rest.

But one has to keep in mind that your warranty does not do any coverage in case of wear and tear issues to the vehicle like that of brake pads, tires etc. 

Regular Car Insurance

Regular car insurance helps you claim financial support in case of collision, any kind of accident, fore or even theft. These insurances not only help to fix the car but also provide other support like claims for the person affected in the accident etc.

Below listed are few coverages that are usually available over car insurance:

Liability coverage: It helps you to pay your hospital bills or the property damage caused by you in the accident.

Collision coverage: It helps you to pay for the repairs in your car caused due to a vehicle collision. The money would be claimed from whoever was at fault.

Comprehensive coverage: It helps you to pay for damages caused to your vehicle by external factors like fire, theft falling objects like trees, hitting animals like deer on high ways.

Uninsured or underinsured motorist coverage: It helps you to pay for damage caused by cars which are either not insured at all or comparatively less insured.

Medical payments coverage: It helps you to pay for medical bills not only for you but also to the co-passengers who were travelling with you during the accident. Need to take passenger cover


As part of your insurance, you also have the option to opt for roadside assistance, which gives you added protection. This feature helps you during times of a car break down, or when your e-car is battery dead, or even a tire puncture. This facility of the insurance helps you tow your vehicle from anywhere to fix your vehicle when needy.

Coming to the conclusion, warranty vs Insurance- Which is better? It is ideal to have both to be on a safer side always.

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