Is a Car Warranty the Same as Car Insurance?

When it comes time to have your car repaired, will you turn to your car’s warranty or your auto insurance policy? What’s the difference between the two? What do they each cover? Continue reading to learn whether or not a car warranty is the same as car insurance.

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Car Insurance

Car insurance offers different types of protections for car owners. There are thousands of insurance carriers to choose from, some of which specialize solely in auto protection, while others maintaining a broad selection of insurance coverage models. Additionally, there are varying degrees of coverage, with policies ranging from liability only, to full, comprehensive coverage. If you wreck your car, or your car is damaged by vandalism, theft, fire, or inclement weather, your car insurance policy would be the protection plan applied when paying for repairs. New car warranties are not meant to cover repairs such as these.

New Car Warranties vs. Extended Car Warranties

Opposite of standard auto insurance policies, new car warranties are geared more toward covering things like mechanical breakdowns and auto part replacements, and they are only for a set period of time that will eventually run out. General warranty limits are between 3 and 10 years, or 36,000 miles and 100,000 miles. There are several different models for car warranties, all of which can be supplied by the car’s manufacturer, the dealer, or a third-party provider. For new cars, manufacturers generally provide a new car warranty, also called a factory warranty. For used cars, dealers will often offer a used or extended car warranty, or you can purchase one from a separate provider.

Bumper-to-Bumper and Power Train Warranties

Regardless of which warranty you have for your car, there are two primary types of coverages they provide, “bumper-to-bumper and “power train” coverage. Bumper-to-bumper coverage generally covers auto repairs for electronics like navigation, heating, and cooling. Power train coverage generally covers auto repairs for engine and transmission malfunctions.

Indianapolis Auto Repair and Maintenance at a Price You CAN Afford

Call Northeast Auto Service at 317-475-1846 for professional and affordable auto repair in Indianapolis, Indiana. We’re ASE certified car mechanics who provide a wide range of auto repairs and maintenance for both foreign and domestic vehicles, including transmission repairs, fuel system repairs, and general automotive maintenance services. We also provide several amenities, such as free written estimates, flexible drop off and pickup hours, and more.

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Indianapolis Auto Repair and Service 317-475-1846

What is Car Maintenance Insurance?

Routine factory scheduled maintenance is necessary for all cars and trucks. Without routine car maintenance, a vehicle is not safe to drive and will quickly deteriorate, incur damage, and eventually become inoperable. For this reason, many drivers look into insurance options to combat the high price of regular car maintenance, especially those who have invested in luxury vehicles. The more expensive or high-priced a vehicle is, the more costly and frequent the maintenance will be. This is not always the case, but it is very common.

Continue reading to learn how car maintenance insurance works, and where you can get the best deals on auto service near you.

Indianapolis Auto Repair and Service
Indianapolis Auto Repair and Service 317-475-1846

Understanding how car maintenance insurance works is not difficult. There are two primary concepts or objectives behind auto maintenance insurance. First, this type of policy is meant to ensure that a vehicle still receives the benefits of recommended factory maintenance after its warranty is void. Second, car maintenance insurance is often used as a tool to persuade car buyers to purchase an extended warranty.

Dealership Insurance

When a person buys a car from a dealership, it is common for the dealership to include a complimentary vehicle maintenance package with the purchase of an extended warranty. When a person leases a car from a dealership, it is common for the dealership to offer free car maintenance services so that the car stays carefully monitored during the leasing agreement, and is returned in good condition when the lease is over.

Extended warranties are good for anyone who expects to have a major car repair over the next several years that is too expensive for them to repair. This is the gamble car buyers take when purchasing extended warranties.

Third-Party Insurance

As for third party car maintenance insurance, or insurance policies purchased outside of a car dealership, these work just like health or homeowners’ insurance policies. You simply outsource a reliable insurance carrier, purchase a policy, and pay a monthly premium. When your car needs serviced, you just take it to an auto repair shop that is accepted by your insurance policy. The policy will pay for all, or a portion, of the maintenance bill. Generally, there is very little cost left for the owner to pay for.

Vehicle maintenance insurance carriers can drop car owners if they do not comply with the recommended factory scheduled maintenance time intervals. This will result in the owner being entirely responsible for all maintenance and repair costs. Talk to a licensed mechanic, or review your owners’ manual, for your vehicle’s recommended maintenance schedule.

Need a North Indianapolis Auto Mechanic?

Call Northeast Auto Service at 317-475-1846 for professional Indianapolis car maintenance and repair services you can trust. Our ASE certified car mechanics provide a wide range of automotive services for all make and model vehicles, foreign and domestic. Schedule a free inspection and estimate, anytime. Don’t forget to ask us about our auto repair coupons and discounts!

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