Car Warranty Vs Car Insurance: Which One To Consider While Buying Used Cars
By Admin
Reading time: 8 min read
Published on: 09 / 04 / 2025
Difference between a Car warranty and insurance
Buying a car is a pleasant yet stressful experience where you have to make several crucial choices. During this time you might find yourself bombarded by terms like “Insurance” and “Warranty” for your used car. Here’s the difference between insurance and warranty for you to make an informed decision!
What is a used car warranty? car warranty details
In layman’s terms, a Warranty is a written guarantee which is issued to the purchaser, at the time of sale, of an article by its manufacturer. This written document acts as a promise on behalf of the manufacturer to repair or replace the article if necessary within a specified period of time.
Like every other product, cars come with a basic warranty as well, during which if it’s a first-hand car, then the company offers a guarantee that their manufactured product will be found free of any kind of manufacturing defects. Thus, the buyer will not face any kind of problems arising during the specified period starting the moment the car is driven off from the showroom. In case any such problem does come up, the company takes the responsibility of replacing the part that deems necessary to ensure a properly functioning car.
On the other hand, in the case of buying a second-hand luxury car, the warranty for used cars plays the same roles and duties. Still, here it is the seller who promises to replace any necessary faulty part in a specified period of time for the proper functioning of the car. Any time your car breaks down or malfunctions on its own without any fault of your own, in the absence of any external foul play, during the specified period of time the warranty has you covered from the external cost. In addition to this, any labour charges that go into getting the car repaired or getting any part replaced are indeed covered under warranty, unless something other than this is stated.
Suppose you were wondering “does a car warranty cover accidental damages?”. In that case, it is essential to mention that the terms of the said warranty don’t cover any malfunction that occurred due to the negligence of the purchaser, or has arisen because of normal wear and tear of parts like the tyres of the car, batteries, or even the engine oils. The terms of a warranty differ from one car to another, especially when it is a second-hand car, based on its condition and its depreciation value.
What is used car insurance? Benefits of car insurance
Much like life insurance, car insurance works similarly. Car insurance, be it on a first-hand car or premium insurance for used cars, covers you and your car against any possible financial loss that may occur due to some unprecedented mishap. This insurance coverage includes not just the car but the driver as well, it protects you from any financial costs that could be caused by vandalism, collision, fire damages, theft, and even acts of nature like earthquakes and floods. In case you get caught in a road accident, the car insurance will not just save you from the repair costs, but will also cover any hospital bills that may come. In worst cases, it even compensates for the death of someone that was involved in the accident.
Unlike a warranty, insurance for your vehicle is provided by an insurance company which has its terms and conditions regarding the claiming process. It is advised that you understand your policies entirely before deciding on one for your car. According to the Motor Vehicles Act, it is a legal necessity to get insurance for your car.
Car Warranty or Car Insurance? Extended warranty car or insurance
You can easily get yourself the car of your dreams from Autobest but what do you do when issues like “warranty vs insurance” start haunting you!
When you get yourself a second-hand car, it is usually recommended that you get a warranty for your used car. Since in India it is a compulsion by law to drive only an insured car, the question between warranty and insurance gets thrown out the window anyways. The real question that sticks around is whether you should warranty your used car, and is it even necessary to get one in the first place? The answer is- yes. A used- car warranty will cover you from any malfunctions that you may encounter within that specified period of time.
Sometimes you might even get lucky with a preowned car that still has its warranty period left. This warranty could be an extended warranty unless the car is still under the OEM warranty. This certification does not just protect you from any future repair costs; it also ascertains the condition of the car.
Hence, it is recommended that you buy used cars under warranty for a pleasant future.
