This article explains how car warranty and car insurance work together to provide coverage for new vehicles.
A car warranty is an optional coverage that covers the repair or replacement of certain parts of your vehicle for a specified period. It typically includes components such as brakes, transmission, engine, and body. Warranties usually have a limited lifespan (e.g., 3-5 years) and are intended to provide peace of mind while driving.
Car insurance is a mandatory coverage that protects you financially in the event of an accident or other covered events. When combined with a car warranty, insurance and warranties work together to provide comprehensive coverage for your vehicle. This means that if you need repairs or replacements due to a covered event (e.g., theft, vandalism), both the warranty and insurance will cover a portion of the costs.
| Insurance Coverage | Warranty Coverage |
|---|---|
| $100-$500 deductible, $1,000-$5,000 maximum liability coverage | $0 deductible, up to 90% of the covered expense |
| Collision and comprehensive coverage may be partially or fully covered by insurance | Certain parts (e.g., brakes, transmission) are typically covered by warranty, while others remain under insurance responsibility |