Car Warranty vs Breakdown Cover vs Car Insurance: What’s the Difference?
Let’s face it, owning a car comes with its fair share of head-scratchers. One of the most common? Understanding the difference between a car warranty, breakdown cover and car insurance. They have their similarities, but they each do a very different job when it comes to protecting your motor.
In this guide, we’ll identify what each one really does, when you might need them and why having the right combination can save you time, stress and serious money! No matter what kind of car you drive - here’s how to make sure you have the correct cover.
What Is a Car Warranty?
Think of a car warranty as a financial safety net when something goes wrong. It covers the cost of repairing or replacing specific vehicle parts that fail suddenly or unexpectedly due to mechanical or electrical faults. New cars usually come with a manufacturer warranty that typically lasts for 3-years or up to 60,000 miles (whichever comes first), although certain manufacturers will offer plans that will last as long as 5 or even 7 years.
Unlike insurance, it doesn’t deal with impact damage or bodywork damage. Warranties also don’t cover the replacement of basic wearable items like windscreen wipers, batteries or brake pads but when a mechanical or electrical component malfunctions, that’s when a warranty can be a real wallet saver.
Types of Car Warranties:
- Manufacturer’s Warranty: Usually included with new cars.
- Extended Car Warranty: optional cover that you can purchase from a car manufacturer or an independent warranty provider like MotorEasy, to replace an expired original manufacturer warranty plan.
MotorEasy warranties cover parts and labour costs needed to repair unexpected mechanical or electrical faults that arise with your vehicle. Importantly, they also cover the cost to diagnose a fault (diagnostic charges), which can often represent a sizeable chunk of the overall repair bill.
Get a MotorEasy Extended Warranty – Covers parts, labour and diagnostic costs.
What Is Breakdown Cover?
Breakdown cover is your emergency lifeline when your car suddenly stops working. Whether you’re stranded at the side of the road or your car won’t start on the driveway, breakdown cover gets help to you fast. Usually, a quick fix at the scene, or a tow to the nearest garage.
Key Components of Breakdown Cover:
- Roadside Assistance: Basic help at the scene.
- Home Start: Help if your car won’t start at home.
- National Recovery: Recovery to your preferred destination.
- Onward Travel: Includes car hire, accommodation, or alternative transport.
Breakdown cover is not a warranty replacement - it helps you in emergencies to get out of roadside trouble quickly and safely.
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What Is Car Insurance?
Car insurance is a legal requirement for driving on public roads within the UK. It’s there to cover the costs if something goes wrong whether that’s an accident, fire, theft, or damage to someone else’s vehicle or property. Unlike a warranty, car insurance does NOT cover repairs caused by sudden or expected mechanical or electrical failures.
You may have heard of a “no claims bonus” which is a reward for not claiming on your insurance, which can help reduce your insurance premiums over time.
Main Types:
- Third Party: Covers others, not your vehicle.
- Third Party, Fire & Theft: Adds protection for theft/fire in addition to third party coverage.
- Comprehensive: Covers you, your car, and others including fire and theft.
If someone crashes into you or your car is stolen, insurance is the safety net that helps with the monetary and sometimes legal fallout. Unlike a warranty (which covers faults) or breakdown cover (which gets you going), insurance is there when damage has already been done. Insurance pays out the market value for your car if you’ve been in a no-fault accident and your car has been written off.
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How to choose the right protection for you
Not all drivers need the same level of cover. Here’s a quick guide based on different car needs and driving habits:
- Insurance – All drivers require car insurance to drive on public roads in the UK. The type of policy you choose can help you save depending on your risk profile and budget.
- Brand New car drivers – You’re covered by your manufacturer warranty, but you could take out a third-party breakdown cover depending on if it’s included in your warranty.
- Used car drivers – As your vehicle ages and racks up the miles, repairs can get expensive fast. An extended warranty can keep your car on the road for longer (Link get a quote).
- High mileage drivers – If you’re regularly on the road, opt for higher-level warranty and breakdown cover so you’re not caught out by expensive recovery costs or unexpected mechanical failures.
Don’t forget - in the MotorEasy account you can keep track of all your car documents and access to exclusive partner offers!
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