Both auto insurance and extended car warranties shield Texas drivers from unexpected costs. People pay flat monthly or annual fees so that they don’t have to spend money on individual repairs. However, these two services differ in many ways, and they benefit motorists under much different circumstances.
When the original warranty expires, a car owner has the option to buy extended coverage. Automotive clubs, manufacturers, dealers and various other companies sell these guarantees. They fund essential services when parts need to be fixed or replaced, but motorists can’t use these programs to pay for repairs after accidents or natural disasters take place.
Some extended warranties include services that a typical manufacturer’s guarantee might not provide. For instance, a major auto club’s extended warranty pays for new batteries. It also provides drivers with rental vehicles when necessary. Likewise, some car insurance policies come with valuable extras e.g., motorists may receive roadside assistance at no additional charge.
Unlike warranties, insurance pays for repairs that become necessary as a result of accidents and other sudden events. Liability policies usually only cover damage inflicted upon another driver’s vehicle. On the other hand, collision coverage generally pays for all crash-related repairs unless the accident involves animals.
Comprehensive plans cover damage in several other situations. Drivers benefit from them when fires, hailstorms and natural disasters take place. This type of policy also comes in handy if vandalism occurs or a motorist crashes into a large animal. Some of these incidents may void a vehicle’s warranty, so comprehensive coverage is crucial.
When you compare extended guarantees with insurance policies, you may notice ads for mechanical breakdown coverage. This service resembles an extended warranty because it pays for non-accident repairs. However, it’s somewhat different because insurers sell it instead of automakers or dealers. Different state regulations apply to breakdown coverage as a result.
If you’re looking for affordable insurance in the Austin area, turn to EZ Insurance Agency. We help Texans find the best rates on dependable coverage from trusted insurers. Our local agency has a highly skilled workforce and more than two decades of experience. Please use our website to instantly obtain a precise online quote.