You may be wondering about the difference between extended warranty and auto Insurance. Often they are thought to be the same and one, but they are different forms of protection and they cover different things. They are distinct and discrete, and are aimed at protecting you and your vehicle in different ways.

What is Auto Insurance?

Auto insurance is a coverage policy that gives protection from the financial loss associated with the damage caused by an external source. It can include vandalism, collision, theft, catching on fire or the damage caused in a natural disaster. It is not necessary that all policies will cover all events.

It is important in the occasions where your vehicle causes the damage to unknown’s property. In view of these unfortunate incidents, it is important to ensure that your vehicle has right insurance coverage to take care of the expenses. You don’t have to pay the hectic amount from your pocket.

Your insurance policy likely won't cover problems due to mechanical or equipment breakdowns. The coverage that is typically available on an insurance policy includes Liability coverage, Collision coverage, Comprehensive coverage, Medical payments coverage, and Personal Injury Protection (PIP):

What is Auto warranty?

An auto warranty is different from insurance in the way, it is designed for certain types of mechanical breakdowns (parts and labor costs). These can be the issues associated with the manufacturing defects or with certain auto parts.

The repairing cost will be zero because your vehicle is under the standard warranty. Once the manufacturer warranty is over you can extend the warranty with extended warranty and can get the same benefits as that of the original one.

Parts guarantees: Auto Warranty

Basically, anytime your vehicle has a part that malfunctions due to no fault of your own, and no other outside force acting on it, then it will be the warranty that covers it. You can and should get it replaced or repaired from the authorized center as determined by the provider. You can claim for the reimbursement with the provider.

Want both the insurance and warranty for your vehicle?

Let’s take for example:

It makes you confused, when you are in a situation that the failing brakes leading you to hit the vehicle in front of you. This is the best case to prove the importance of both the insurance and the auto warranty. The warranty will cover the brakes, but it will not cover the damage you have done to the other vehicle.

The insurance safeguards you financially, in the sense that you do not have to pay for the damage to your vehicle, or some else’s vehicle or the medical expenses of someone you injured with your vehicle. Insurance provides coverage when you have got an accident or when your vehicle is damaged by the events like vandalism or by weather.

At the same time Auto warranty covers the normal wear and tear that has incurred from the regular use. Auto warranty helps pay for replacement parts or covered repairs during the specified warranty period. It means it won’t pay for the engine tune ups, changing oil, tire replacement, paint over a scratch etc... Auto warranty providers have different plans tailored to the needs of its customers.

Taking into account the situation, it is worth to have auto insurance and extended warranty coverage for your vehicle.

Extended warranty

An extended warranty is a coverage policy you can purchase to extend the length of the warranty or to cover a used vehicle. You can get extended warranty coverage from reliable third-party providers like the AAA Warranty Services. Depending on the warranty policy, coverage to the parts will vary. Therefore choosing the policy that suits your needs is wiser.

Please note that the AAA auto extended warranty is available for a used vehicle as well.

Additional Protection – Roadside Assistance

Along with your Auto warranty and insurance, another "safety net" you can seriously consider is Roadside assistance. AAA warranty services offer Roadside Assistance policy along with the Auto extended warranty. This type of program may help tow your vehicle if it breaks down, or offer services like battery recharging, flat-tire repair and more. You can get additional information by visiting their website.

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