Car Warranty Insurance: What, Why, and How?

If you are new to car warranty insurance, we’ve got you covered. You will learn the basics of car warranty insurance, why you may need one, and how you may get one. This guide will also help shed light on whether insurance, like Allianz comprehensive car insurance, is perfect for your car.

What is it?

To know if you should get one, you should first know what you’re getting yourself into. Warranty, provided by an insurance company or car manufacturer, is coverage of financial costs and repair or replacement of car parts incurred in damage.

car repairng

A car warranty is usually included if you purchase a brand new car. This usually covers four major parts: the basic, which includes parts from the manufacturer or factory; corrosion or rust in the car metal sheets; drivetrain warranty, which includes transmission and engine parts; and roadside assistance, which includes towing and repair or replacement of car parts. However, not all warranty insurance covers all four parts.

Basically, you are required to pay a fee regularly, and you may avail of benefits of insurance when the need arises, such as when you encounter road emergencies or when your car needs repair.

Why would you need one?

Every driver is not immune against unforeseen road accidents. Moreover, even if a driver is careful, continuous car use will result to natural wear-and-tear and damage.It can be a burden on your finances if your car is not insured because car repair is notably costly.Paying a regular fee for car insurance will minimize heavy and unforeseen costs. It will also help you budget more effectively. Lastly, having your car insured also increases its value in the market, if you do decide to sell your car.

How do you get one?

There are different types of comprehensive car insurance.  When you purchase a brand new car, it comes with insurance provided by the manufacturer. However, this does not usually include roadside assistance and replacement of parts damaged by wear-and-tear or negligent use. There are also third-party insurance companies, which provide car warranty even after manufacturer insurance has long expired.

They provide a more comprehensive list of car parts and services. Other vehicles also have insurance. Motorcycles have their own customized warranties. Other sub-categories include insurances for new cars and used cars.

car extended warranty

Different car manufacturers or brands offer various car insurances. An example is Honda extended warranty which you can avail from Allianz extended car warranty. In fact, some car companies or manufacturers use more desirable warranty terms to attract buyers. This usually means that the car warranty is still covered even when the mileage driven is higher or even if the car is older.

Different insurance companies vary in cost. They also vary in brands of car parts and services offered. It is up to the client to determine which insurance to get, depending on what is tailored for his needs.

Clients may be hesitant about car warranty insurance, especially if the car may survive a few more years without it. However, after manufacturer insurance expires, the cost of repair may skyrocket. As a car owner, it is up to you to decide whether it is better for you and your car.

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