What's the Difference between Car Insurance and Car Warranty?

Car Insurance and Car Warranty: What you need to know

Whether you drive a family-friendly SUV or a compact city car, it’s important to look into and familiarise yourself with all the various policies available. Car insurance vs car warranty, for instance, is something you need to consider. So, let’s start by finding out the differences.

What is car insurance?

Like it or not, car insurance is compulsory. It’s against the law not to have it, so if you’re planning to hop behind the wheel, you need to compare and contrast policies to get the best price.

There are many different policies available including Third Party, which is the minimum amount of cover required by law. This covers you against the costs that arise from injuries to other people or damage to someone else’s car. You can also opt for Third Party Fire and Theft. This is basic cover which also offers financial protection should your vehicle get damaged, stolen or destroyed in a fire. Comprehensive is the highest level of cover available. It offers the same as Third Party Fire and Theft policies as well as extra protection against medical expenses and accidental damage as well as the damage or theft of a vehicle’s contents.

What is car warranty?

Unlike car insurance, car warranty is not compulsory, but it is beneficial and can give you peace of mind whether you’ve bought a new car or a used car from a reputable car dealership. Essentially, car warranty covers the cost of car parts if they stop working. There are many different types of warranties available, so again, it’s a case of doing your homework and making an informed decision.

Adjustment warranties

An adjustment warranty does what is says on the tin, protecting against small adjustments such as leaks, squeak, rattles and so on. It’s usually offered by the dealership upon purchase and normally has a 90-day cap. For this reason, it’s really important to take your preferred vehicle for a test drive, particularly if you’ve travelled a long way to get the car you want. Only the dealer can fulfil the adjustment warranty offered, so take the time to point out anything that worries you.

Manufacturer’s warranties

A manufacturer’s warranty is connected to major elements of your car. It’s basically a promise from the manufacturer that they’ll help pay for significant repairs – or a part replacement. Depending on the manufacturer, warranties of this kind usually last for 3 years, or 36,000 miles – whichever comes first. That said; it’s possible to get a 10-year warranty with a limit of 100,000 miles in some cases. Always read the small print of your warranty, so you know exactly what to expect if something does go wrong with your car.

Bumper to bumper

While this type of warranty covers all car systems such as air conditioning, it does not include parts which experience great levels of wear and tear such as tyres or brake pads.


Mechanical parts can be expensive to fix. That’s why powertrain warranty is important as it covers the engine, transmission and other mechanics.

If you’re looking for a quality used car, contact Carwise Group today for more information and browse our extensive vehicle line-up. We’ve dealerships in both Harlow and Maidstone and offer a reliable and trustworthy service. As all of our vehicles have a full service and ownership history, we’re a safe alternative to buying from a private seller who may not offer such documentation.