The Difference Between Car Warranty & Car Insurance

The Difference Between Car Warranty & Car Insurance

A car warranty and car insurance may seem like the same thing, but they actually cover two different things which give you protection from 365 degrees.

Extended warranty and car insurance are two terms that pop up very frequently when you are purchasing a car–both new and old. It’s these values that are often seen as coverage that cover the exact same thing. In reality, though, both of these services cover two separate things that offer you complete protection on the road. Here are the differences between a car warranty and car insurance.


Like every product we use, cars come with a basic period of warranty. During this time, the company “guarantees” that their product will be free from any kind of manufacturing defects. Should there be any kind of problem arising during this period, the company will replace the parts that it deems necessary to make sure that the car is in proper working order. The terms of warranty vary from one manufacturer to another, but the basic components that are covered are more or less the same.


Car insurance covers you for your car, but only for accidents that have nothing to do with the manufacturer. Car crashes, vandalism, theft, fire damages, and acts of nature can all be covered by a quality car insurance policy. You pay a premium for the policy, and is legally required by every person who owns a car. Insurance helps cover the financial costs of a complete repair or replacement after an accident.

Car insurance and car warranty are very different things, but they work together to bring you the protection that you deserve. Contact Risk Management LLC in Brookfield, Wisconsin for all of your auto insurance needs.

  • Risk Management assisted me in determining the best insurance coverage to match my business’ risks. Not only did their professional staff spend ample time meeting with me to understand my business, but they continue to follow up with a phone call on a regular basis. I’d consider each of the members on the Risk Management team a true asset in my corner, as they assist to resolve complex insurance issues including GL, Med-pay, business interruption, unemployment insurance, and most importantly, claims management. Their ongoing research in the insurance industry allows my rates and coverage’s to be best in in class, which helps me to remain competitive in my industry.

    -Steve, S. former owner of Helium Trampoline Park

  • “When we want develop partnerships with vendors, the deciding factor is always based on a single question…Do they pick up their phone? At Risk Management, they pick up their phone. In the indoor trampoline park industry, we have dealt with several insurance agencies that were always more concerned about their commission, not building a business relationship or serving our needs. On more than one occasion, Risk Management has stepped in and helped us with carrier/policies issues that the incumbent agencies had dropped the ball on. There was no financial reward for Risk Management in these situations, they see a problem and help fix it. They just do business the right way. Steve Young and his team at Risk Management represent us, not the carrier. We highly recommend Risk Management.”

    -Mark M. Operations Manager,CEO Fun Palace Place

Address: 21420 W. Greenfield Ave Ste 100
New Berlin, WI 53146
(262) 785-8930
Toll Free: (888) 857-5144
Fax: 1 (800) 424-3955
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