When you’re looking to buy a car, you may expect to be offered consumer protection policies to insure the vehicle against specific hazards. A Motor Warranty and Car insurance are the two most popular options. The first is provided by insurance companies, while the car manufacturer provides the latter, but insurance firms also sell Motor Warranties.

It’s common to confuse Car Insurance coverage with a Motor Warranty. Although each product is intended to safeguard you and/or your vehicle and may overlap in certain situations, they are really very distinct. This blog post discusses the differences between motor warranties and car insurance.

How do car insurance claims work?

Vehicle insurance is a plan that you may get when you buy a car and pay monthly fees. It pays for repairs in certain circumstances, such as when you’ve been in a vehicle accident. The policy may also offer financial protection in the case of theft, hijacking, or fire, depending on the kind of insurance (see below).
Most insurance providers provide customized Car Insurance plans, with Third Party Only, Third Party, Fire Theft and Comprehensive, the most common choices. It’s crucial to think about how each will fit your requirements and situations. Each company’s payment terms and claims processes differ, and so do the monthly rates for each kind of insurance.

Comprehensive Insurance – provides the greatest degree of protection for your car, covering most hazards such as theft, accidents, fire, hijacking, and damages to third parties.

Third-Party Only Insurance — if you cause an accident, this kind of insurance covers the damages to other people’s vehicles and equipment.

Third-Party Theft and Fire Car Insurance — this policy covers fire damage, theft and hijacking in addition to liability coverage.

Motor Warranty Meaning

The Motor Warranty is indeed a formal guarantee from the manufacturing company or an Auto Insurance company that your car components will last as long as they should. Under the terms of your warranty, it is your right to have any component of your vehicle fixed or replaced if it malfunctions for reasons beyond your control.

As per the AA, many new cars come with a guarantee that lapses after a particular period of time or after a specified mileage. The motor, transmission, electric parts, audio system, fuel system, and sensor systems are all common elements covered by the guarantee. A motor warranty does not cover normal wear and tear or damage caused by carelessness.

Pre-Owned Warranty — this plan is for vehicles that have had their factory warranties expire. This kind of warranty is provided by an insurance company and covers the replacement and/or replacement of parts that are explicitly specified in the policy’s requirements.

Extended Guarantee – In addition to your new passenger car’s normal warranty, or if your existing manufacturer warranty has lapsed, you may purchase an Extended Warranty to cover the costs of mechanical failures. This kind of warranty extends the manufacturer’s original warranty period and mileage.

So what was the difference between such a motor warranty and a car insurance policy?

• A Motor Warranty differs from Car Insurance in that the former emphasizes the manufacturer’s responsibility in guaranteeing your vehicle’s excellent condition. If manufacturing flaws or defects cause a mechanical breakdown, the manufacturer’s or insurance firm’s warranty plan allows you to repairs or replacements.
• Vehicle Insurance can safeguard you against financial losses when you’re responsible for the destruction of somebody else’s vehicle. A Comprehensive Vehicle Insurance coverage will assist pay for costs connected to repair and/or replacement if your vehicle is damaged because of a car accident, theft, or natural calamity.

While a new vehicle’s manufacturer’s warranty typically comes standard and expires after a set number of years, you may augment it with an Extended Warranty and Auto Insurance. For instance, should your brakes fail when you collide with the rear of another car, the warranty will pay for the brakes, and the insurance might pay the damage, assuming you have the appropriate coverage.

It’s important to remember that not all plans and warranties are made equal, so verify with your insurance provider or vehicle dealership for the best price, or compare rates online.

DISCLAIMER: The material included in this article is for educational reasons only and must not be regarded as advice. Enginefinder.co.za is not liable for any loss or damages incurred due to this content.