How Is A Warranty From PMC Different Than Insurance

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Car insurance and car warranties may seem similar and in a way they are both ways of reducing risk and liability as a driver, however they are very different in practice.

While car insurance will pay for repairs needed after an accident or even a natural disaster if you have comprehensive insurance, a warranty will cover unexpected repairs from mechanical breaks not relating to an accident or something outside of your vehicle.

The key difference between warranties and insurance is that warranties are there to cover breaks within your vehicle not relating to outside events where as insurance will cover repairs needed relating to unforeseen circumstances outside of the control of your vehicle. For example, insurance will cover a bumper repair when you are rear ended, where as a warranty will cover a blown engine block or transmission that breaks on the vehicle because the part wore out.

Things get more complicated when you realize that there are different types of both insurance policies and warranties. There are new car warranties, for example, and extended warranties. There are insurance policies that cover you for collisions and others that cover hail and fire damage. We’ll get into all of the varieties and what they cover, but first let’s focus on insurance.

Insurance coverage really depends on what type of policy you have and pay for. If you are unsure about what type of coverage you have, pull out your policy and compare it to our chart listed below.

What Does Car Insurance Cover?

While warranties and insurance seem similar in that they help a driver eliminate their risk of out of pocket repairs, where this risk stems from is different.

Insurance coverage is for breaks or repairs needed due to outside circumstances not relating to mechanical failure. This may include a collision accident with another vehicle or running into a light post after swerving to avoid hitting an animal in the road. It could also include flood damage or falling tree branches (comprehensive coverage). Insurance may also cover the difference between what your totaled vehicle is worth when compared to how much you have remaining on your loan (gap insurance). There are quite a few options

You can pay for extra insurance, however the bottom line is that you are LEGALLY REQUIRED TO HAVE SOME FORM OF CAR INSURANCE by your state, This is a key distinction between a warranty and insurance. The bare minimum coverage you are allowed to have will include whatever your state’s minimum coverage limit is. This varies by state.

The 3 insurance forms that most states will require you to have are:

  • Liability insurance, which pays for any expenses due to an accident that you are considered at fault for. Generally, this includes liability, bodily injury, and property damage liability coverage.
  • Personal injury protection (PIP) or MedPay to cover any medical expenses accrued after an accident.
  • Uninsured and underinsured coverage to pay for damages caused by drivers without car insurance or without enough car insurance to pay for the damages they cause.

Here are some of the other types of car insurance that may be optional for you to purchase and what they are designed to cover, courtesy of NerdWallet:

Coverage typeWhat it pays for
Bodily injury liabilityMedical costs due to injuries or deaths from an accident you caused.
Property damage liabilityRepair costs for property you damaged in an accident.
Uninsured motorist bodily injury liability Medical costs after an accident with an uninsured driver.
Uninsured motorist property damage coverageRepair costs after an accident with an uninsured driver.
Underinsured motorist coverageExpenses from an accident with a minimally insured driver. This coverage pays once the underinsured driver’s coverage limits have been met.
Collision coverageRepair expenses from traffic-related accidents, regardless of who is at fault.
Comprehensive coverageRepair costs from events outside your control — including weather events, hitting an animal while driving, theft and vandalism.
Medical payments coverageMedical expenses for you and your passengers after an accident regardless of fault.
Personal injury protection insuranceMedical expenses, as well as lost wages, child care, funeral costs and other losses due to an accident regardless of fault.
Gap insuranceThe difference between what you owe on your car and your car’s true market value.

A Warranty From Protect My Car Pays For Major Repairs Not Covered By Insurance

So here’s the good news: a vehicle service contract from Protect My Car will absolutely cover major repairs where insurance falls short. Imagine your morning commute to work when suddenly your engine blows out and you find yourself stranded on the side of the road . A repair of this nature will cost you well over $5,000 and upwards of $10,000 without a warranty and depending on your car. With a warranty, you may only have to pay $100 for these repairs as a deductible and you might even qualify for some highly rated road side assistance at no additional cost.

Insurance is not going to cover the liability of an unexpected repair due to mechanical failure, but a warranty form Protect My Car will. From engines, to suspension, air compressors and timing chains, you can sleep easy at night knowing you just have a small deductible to cover on unexpected repairs and Protect My Car will handle the rest.

As you can see, all of our vehicle service contract plans cover major repairs to your car which can cost thousands of dollars.

A vehicle service contract is a bit different than insurance. For insurance to work, your car needs to be involved in an accident which isn’t all that common. On the other hand, cars break down all the time.

When your car does break down, if you have a vehicle service contract we take care of the repair bill for you. You pay a deductible (between $100-$200) just like you would with insurance, and we pay the rest.

For example, if your transmission fails and you are quoted $2,900 for a repair but you have a Supreme policy with us, you would only pay $100 dollars as a deductible and then we step in and pay the rest of the repair bill for you. Pretty sweet, right?

Different Types Of Car Warranties

There are different types of warranties in the same way that there are different types of insurance policies. The most common of these warranties are

  • Extended Warranty
  • New Car or Manufacturer Warranty

Manufacturer Warranty Or New Car Warranty

A manufacturer warranty comes standard with most new cars regardless of the brand you decide to purchase. For example, the manufacturer’s warranty from Ford Motor Company is for 3 years or 36,000 miles. This warranty automatically comes included in the price of your purchase of a new Ford vehicle.

A good new car warranty will cover up to 10 years or 100,000 miles. The exact warranty coverage will vary from company to company, so it’s important to read your warranty documents carefully.

A manufacturer warranty will typically be considered a “bumper to bumper” warranty meaning the entire vehicle will be covered with the exception of wear and tear items like tires. This is the manufacturers way of saying the stand behind the vehicle that they produced and you should have no issues with it within a certain time frame. If you do, repairs are on them.

There are typically several warranties within your new car warranty. They are:

Powertrain WarrantyA powertrain warranty from Ford covers: engine, axles, transmission, transfer case, drive shafts, all wheel drive, rear wheel drive, front rear drive and differentials. 

These also tend to be the most expensive parts on your car. Transmission replacement can cost upwards of $3000 to repair or replace.
Corrosion WarrantyA corrosion warranty covers perforation of the body panels of your vehicle. It essentially covers any rust that may form on your car
Safety Restraint WarrantyThe safety features on your vehicle may also be covered under your manufacturer warranty. This includes the safety components such as airbags, seat belts or safety restraint system (SRS).

Extended Warranties or Vehicle Service Contracts

Extended warranties come after the dealership or manufacturer warranty is up. Many car owners choose to purchase a 3rd party extended warranty at this time to help them cover the cost of their unforeseen repairs. A car can break down at any time, even one that has been maintained appropriately. Extended warranties help people avoid going into debt over these car repairs.

Similar to insurance, with an extended warranty you will pay a monthly premium. When your car breaks down, you pay a small deductible of $100 to $400 depending on your warranty provider and they cover the rest.

The Difference Between a Car Warranty and Car Insurance

Car insurance and car warranties may seem similar to a degree. They are both ways of reducing risk and liability as a driver, however they are very different in what they actually cover.

While car insurance will pay for repairs needed after an accident or even a natural disaster if you have comprehensive insurance, a warranty will cover unexpected repairs from mechanical breaks not relating to an accident or something outside of your vehicle.

The key difference between warranties and insurance is that warranties are there to cover breaks within your vehicle not relating to outside events where as insurance will cover repairs needed relating to unforeseen circumstances outside of the control of your vehicle. For example, insurance will cover a bumper repair when you are rear ended, or hail damage after a storm where as a warranty will cover a blown engine block or transmission that breaks on the vehicle because the part wore out.

Protect My Car Is Now Offering Insurance

When was the last time you shopped around for car insurance? If you have been with the same company for years, you may be paying far more than you should.

Car insurance prices change monthly. On average, premiums are up almost 41% since 2010.

Quite frankly, it is a pain in the butt to comparison shop and sort through all the insurance mumbo jumbo.

You just want the same great coverage, without paying an arm and a leg.

That is where we come in. Once you request a quote from us, we assign one of our licensed insurance agents to get you quotes from over 30 major AM Best Rated Carriers, including big names like Progressive & Liberty Mutual.

The best part is you don’t have to do anything. Your agent finds you the best rates for free, and then sends them to you, with no pressure to switch.

On average, most people can save between 15-25%, although some save up to 50%.

Never Get Yourself Into Debt Over Car Repairs Again

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Car repairs can be absurdly expensive, and you can expect those unexpected repairs before too long no matter what vehicle you drive. 

If you have to replace the engine block it could cost you more than $10,000. 

Depending on your vehicle it could cost you up to $10,000 dollars to make repairs to components like the transmission and suspension. 

If that seems absurd to you, luckily you aren’t alone.

A vehicle service contract from Protect My Car can help cover the cost of these excessive repairs. In fact, you could pay as little as $100 dollars for that $5,000 engine replacement.

Yes, you heard that right.

For less that the cost of a cup of coffee each day, you can get coverage for:

  • Steering
  • Suspension
  • Engine
  • Transmission
  • A/C and Heating
  • Navigation and Electronics
  • …and so much more.

When you walk into the repair shop with a coverage plan from PMC, you can rest assured that you will never pay for these repairs listed here. You pay a $100 deductible, just like insurance and we pay the rest.

Does that sound like a fair deal to you?

If it does, just fill out the form below for a free quote, and see how great it can be to never have to pay for car repairs ever again.

About Protect My Car

Protect My Car is an extended auto warranty company. Our goal here at Protect My Car is to eliminate your worry of being financially responsible for an expensive mechanical breakdown. With our extended auto warranty, you don’t have to worry about being fully burdened with the cost of a covered repair.

Want to protect your vehicle?

Or give us a call at Orange telephone handset icon.1-800-253-2850