The Key Differences Between Auto Insurance and Warranties


Auto insurance and auto warranties both protect your vehicle, but in very different ways. One of the major differences is that while auto insurance is generally required by law, drivers are not legally required to have an auto warranty. However, this doesn’t mean auto warranties are not worth the cost, nor does it mean that they do not provide adequate protection for your vehicle. 

What are the differences between auto insurance and an extended warranty? 

The Basics of Car Insurance 

In nearly every state in the United States, drivers are required by law to carry some form of auto insurance. The minimum coverage varies by state, but you are most likely required to carry this type of insurance if you own and operate a car on public roads. 

What car insurance covers can vary based on your insurance provider and the plan that you choose. If you are unsure what your auto insurance covers on your vehicle, contact your insurance carrier. The main thing that car insurance covers is accidents. When you get into an accident (whether it is your fault or not) an insurance provider (either yours or the owner of the other vehicle) will pay for the damage to your vehicle. If the damage is too much, and the costs of repairs exceed the estimated total value of the car, insurance will generally pay out money for you to purchase another vehicle. 

While different insurance plans cover different things, most plans have one thing in common: they will not cover everyday wear and tear on your car. If your transmission goes out, your insurance will not cover the cost of repairing or replacing it. If your radio stops working, or your windows won’t roll down, you will have to pay out of pocket for the repairs. Car insurance is there to pay out in the event of an accident, not if something goes wrong with your vehicle. 

The Basics of Auto Warranties 

Auto warranties (like the Auto Protection Plans from Everything Breaks) work similarly to auto insurance. Like auto insurance, you pay a set amount each month, but the plans cover very different things. Auto protection plans cover many major and minor components in your vehicle from damage, not due to damage caused by an accident, but because of normal wear and tear on the vehicle. 

Many of the things that are covered under an Everything Breaks Auto Protection Plans include: 

  • Engine components 
  • Steering components 
  • Electrical components 
  • Suspension components 
  • Brake components 
  • A/C and heating components 
  • Transmission components 
  • Much more 

Some of the things that are not covered include: 

  • Brake pads 
  • Filters 
  • Body damage 
  • Damages due to auto accidents 

Having Car Insurance and a Warranty 

Having both auto insurance and an auto protection plan is the only way to fully protect your vehicle from all forms of damage, wear and tear, and failing components. You never know when your vehicle will need an unexpected repair that will cost thousands. With an auto protection plan alongside your insurance plan, you won’t find yourself in the situation where you have to come up with money you don’t have for a repair you can’t afford. Find out more about our auto protection plans by calling us today. 

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