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What is the difference between a car insurance and car warranty?
Is a warranty the same as having car insurance? I leased a new Honda and got a three-year warranty.
Sophie Newman · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Even though both can help pay for repairs and offer protection for your new car, there’s a big difference between an auto warranty and
car insurance
. Essentially, an auto warranty is a promise from the manufacturer or dealer to cover various defects and repairs. All new Hondas have a Three-Year/36,000-mile limited warranty, plus a Five-Year/60,000-mile Powertrain limited warranty. Your warranty will cover your vehicle for three-years or 36,000 miles, depending on which happens first.
Car insurance protects you, your vehicle, and other drivers against unexpected damages. It’s legally required in most states. Driving without
state minimum car insurance
could result in some hefty fines and even jail time. While there are differences, having both car insurance and a warranty on a leased car is essential! Both can save you money in the long run, even if one is legally required.
If you want to save even more money, go to
Jerry
. Jerry helps you find the best car insurance rates for the coverage you require by comparing quotes from the top 50 providers. Once Jerry finds good rates, we deliver those deals to your phone in minutes. And the best part–Jerry does all of this for free.”View full answer
- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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