Auto Insurance vs. Car Warranty: Do You Need Both?

If you own a vehicle, you have probably heard the terms auto insurance and car warranty used interchangeably. They are not the same, and understanding the difference can help you avoid some unexpected costs when something goes wrong with your car.

What Is Auto Insurance?

Auto insurance is a legally required financial protection that may help cover costs related to accidents, theft and certain types of damage. In South Carolina, drivers must carry at least the state-required minimum liability coverage and uninsured motorist (UM) coverage. Your policy may also include collision, comprehensive and underinsured motorist coverage. Situations vary, so it is always a good idea to review your policy with your agent.

What Is a Car Warranty?

A car warranty is a contract, typically offered by a manufacturer or third-party provider, that may help cover the cost of certain mechanical repairs and defects. Warranties generally cover components such as the engine or transmission when they fail due to manufacturing defects. They typically do not cover damage from accidents, weather events or theft. Coverage terms and exclusions vary significantly depending on the warranty provider and plan you choose.

Why You May Need Both

Auto insurance and a car warranty cover different kinds of risk:

• Accidents, theft and weather damage fall under auto insurance.
• Mechanical breakdowns and manufacturer defects fall under a warranty.

A gap in either can leave you with unexpected out-of-pocket costs. Together, they offer stronger coverage for your vehicle and your finances.

Ready to Review Your Auto Insurance Coverage?

Our team at Select Insurance is committed to delivering reliable auto insurance solutions to drivers in Anderson, SC. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.