Vehicle Warranty vs. Regular Insurance. Which is better?


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It’s not often clear when you first purchase your car, what the difference is between warranty and insurance and which covers what. More-often-than-not they are thought to be one and the same. 

It’s important to note that your car warranty and your car insurance and two very different types of protection and will cover very different things. Understanding the difference will stop any confusion if you ever need to use either one. 

What is a vehicle warranty?

A warranty is designed to cover certain types of mechanical breakdowns. For example, a Hyundai warranty from ALA protects against the possible costs you may typically get with any electrical or mechanical faults. The original warranty of a Hyundai lasts for five years (although with other car manufacturers this is usually around 3 years), but with ALA you have the choice to extend your warranty, meaning you’ll still be protected after the original one expires.

What is included in your warranty can vary between manufacturers so it’s important to check before you purchase. It is, however, important to note that your vehicle warranty won’t cover you for any routine maintenances such as oil changes, tires and brake pads. 

What makes car insurance different?

Having car insurance is a legal requirement in the UK and will help protect you in the event of any damage to the car, injuries to passengers or pedestrians. Car insurance can also provide any financial support needed if your car is stolen or destroyed by fire. 

There are three types of insurance you can choose from. Third party, third party fire and theft and comprehensive. It’s important to note that the minimum level of coverage to a vehicle is third party, but this only covers injuries to other people and damage to other people’s property, and will not cover your car. 

Comprehensive is the highest level of coverage. It protects against damage to your car, accidents you may be in that involve other people and can occasionally include benefits such as a courtesy car and legal expenses, although these may be at an additional cost. 

With car insurance you are able to access help such as roadside assistance should you ever break down, and most insurance companies will allow you to add additional drivers to your policy. 

Which one should I get?

Depending on the age of your car, you may already be covered within the standard vehicle warranty. However, if you’re purchasing a second-hand car with an expired warranty, it’s important to consider purchasing an extended one. 

Think about whether you can afford the costs of repairing the car yourself should anything happen. Having an extended warranty can save you money if your car needs expensive mechanical or electrical repairs. 

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