Mechanical breakdowns and car accidents can be a real pain in the wallet. Unfortunately, with money being tight, a lot of us are struggling to make up our minds about what insurance option can help us out of a roadside rut. Should you opt for car insurance or motor warranty? Which will help you out the most in a pinch and give you that peace of mind? In this article, we tackle the differences between car warranty plans and car insurance. Find out which is right for you!
What’s Covered Under A Motor Warranty?
When a car dealership sells you your dream ride, the manufacturer will typically make you a promise to cover the cost of repairing and/or replacing faulty components. This promise is your car’s motor warranty. If a car part malfunctions and causes a mechanical breakdown, the manufacturer is responsible for repairing or replacing said part at no extra cost to you.
There are two types of motor warranty, apart from the warranty you get on your car when buying it from the manufacturer:
- A pre-owned warranty covers the repair/replacement of components specified under the original policy connected to the initial purchase of the car. This usually applies to second-hand vehicles.
- An extended motor warranty is typically added onto a standard motor warranty (the manufacturer’s original “promise”), thereby extending the years and mileage originally provided for by the manufacturer.
Both of these warranties are suitable for cars, whose warranties have already run out.
Common vehicle components that fall under your average motor warranty are
- Electrical components
- Fuel system
Less common is the inclusion of a car’s audio system, and sensors.
Depending on your insurance provider, an extended motor warranty is likely to include several perks, such as
- Towing and storage in the event of a breakdown
- Delivery after repairs to the car are completed
- Hotel accommodation, if your car breaks down while you’re far from home
What’s Covered Under A Car Insurance Policy?
A car insurance policy is there to rescue your finances in the aftermath of an accident or theft. Car insurance companies will usually offer three different types of car insurance: comprehensive, limited, and third-party only.
Obviously different car insurance companies offer different perks in their policies, but cover against theft or post-accident damage (to you or a third-party) remains standard across the board. However, depending on the insurer of your choice you may also enjoy some added benefits, like regular no-claim cashback rewards or 24-hour roadside assistance.
Why You Should Invest In Motor Warranty Today
For the most part, a responsible driver can avoid a costly crash in the long run. However, electrical and mechanical breakdowns and engine failures are much harder to anticipate and budget for. Take that stress off your plate by applying for motor warranty quotes in minutes!