817-485-5050 info@schwabagency.com

Car Insurance Versus a Car Warranty

Learn the difference between auto insurance and car warranties.

Because both car insurance and car warranties offer protection for your vehicle, they may seem like they are overly similar. However, there are distinct differences in the type of protection they will offer you. Curious to learn more? Here’s what differentiates standard auto insurance and a car warranty.

Auto Insurance

At its core, auto insurance is designed to offer the policyholder financial protection in the event that they cause bodily injury, property damage, or other losses to a third-party. This is why the most basic forms of insurance offer coverage to address the medical treatment and repairs that another motorist or other party might require after being involved in an accident that you have caused. However, there are additional coverage options that will allow a policyholder to address their own medical and repair expenses as well.

Car Warranty

Car warranties are generally issued by car manufacturers on new cars. Warranties are essentially a manufacturer’s guarantee that the car will operate as promised. Rather than an ongoing protection that you pay for, warranties naturally come with an expiration date. Generally, a warranty will cover mechanical breakdowns or other car issues caused by some structural irregularity in the vehicle for a set number of years or miles.

Main Differences

The biggest difference between these two types of protection is that car insurance can cover the cost of another’s medical treatment and repairs, while a car warranty only offers coverage for the car it is issued for. Additionally, car insurance coverage is ongoing; so long as you continue to pay your premiums, you will have the protection you need. Warranties, on the other hand, are limited and come with an eventual expiration date. Finally, while insurance covers damage stemming from accidents, weather events, and other external issues, a warranty strictly covers mechanical breakdowns and issues occurring within the car itself. It only offers protection for the damages or malfunctions caused by some internal defect resulting from a manufacturer’s misstep.

This is what separates car insurance from a car warranty.  Looking to find the right auto insurance protections to fit your needs?  Then don’t hesitate to contact the experts at The Schwab Agency in Colleyville, Texas.  Our dedicated team is ready to get you the coverage that you need today.

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The Schwab Agency

The Schwab Agency, LLC has over 20 years of experience within the insurance industry in our community and our goal is to bring you unparalleled service and dedication. Since the majority of our business is through long-lasting relationships with our clients, fulfilling your needs is of the highest priority.

COVID-19 Update:


Due to new increasing cases of Covid-19 our office will be closed to the general public until further notice. Our team will still be working full-time in the office and here to assist with all your insurance needs. Please contact us via phone at (817) 485-5050 or email: info@schwabagency.com.


We hope everyone is doing their part to protect themselves and their loved ones during these hard times, and thank everyone for understanding our decision to do our part to help protect our staff and those in our community.


Tim Schwab.
President and Managing Partner