It is not unusual to be confused about the difference between car insurance and a car warranty.
They seem to be similar but are actually quite different because they do not cover the same thing!
Car insurance
In some states, you are legally obliged to take out a car insurance policy at the same time you buy a car.
Ca Insurance pay out for damage to a vehicle caused by some sort of accident, like backing into your neighbor’s fence, or colliding with another vehicle?
It also usually covers damage caused to others at the same time. This can include other vehicles or buildings (including neighbors’ fences).
If the accident was not your fault, you will be able to get your vehicle repaired or replaced at no cost to yourself.
If you caused the accident, then your policy will have a deductible which you will have to pay, but your insurance pays the rest for the repairs or replacement of any other vehicles, fences, etc.
But car insurance does not cover the cost of repairing parts of your car that have stopped working due to normal wear and tear.
Taking out Carshield coverage can pay for your repair costs for issues that a car insurance policy does not cover.
Common Car Repairs
Some of the most common car repairs are:
- Car battery issues
- Damage to tires or wheels
- Damage to the engine caused by using the wrong oil
- Faulty alternator
- Failure of the starter motor
- Issues with the radiator
These kind of issues is not covered by car insurance policies.
Automobile Car Warranty
Of course. it is convenient to take out this protection while you are at the car dealership. Just a few more forms to sign, and it’s done.
But you could be making two costly mistakes.
Firstly, the cover supplied is usually a one size fits all policy. They are inflexible and may cover some things you don’t need or want to be covered and not cover some things you do want to be covered.
You have no opportunity to alter aspects of the warranty to match your needs.
Secondly, if you have taken finance to pay for the vehicle, the dealer may suggest adding the cost of the warranty to the finance deal, so that you pay for the entire warranty as one single amount.
Because it is added to the car finance, it’s like you are not even having to pay for it.
But why buy up to 7 years of the warranty in one go when you might not keep the vehicle that long. Monthly payments for the warranty will be far cheaper if you only want to keep the policy going for say, 4 years.
Also, the cost of the warranty is going to be even more expensive because you will be paying interest on top of the purchase price.
Carshield Car Warranty
This is a Vehicle Service Contract that can be bought even if the car is out of its factory warranty. So, you can never be double covered.
Whether your car is 5 years old or 10 years old and regardless of the mileage, three is a plan to suit your vehicle based on its age and mileage.
With a Monthly Carshield Plan, you can keep the coverage on your vehicle for as long as you want and the cover you have chosen can never change
You can get your repairs done at your local ASE Certified Repair Shop, or you can even go to a Dealership. Claims are paid directly to the Dealer or Repair Shop, so getting your car back on the road is hassle-free.
