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Knowing the key differences between car insurance and used car extended warranty is mandatory as they help someone decide the right kind of coverage and protection for their needs. If the differences are not understood correctly, there is a possibility of someone getting in trouble as they might not be able to get the type of coverage they thought they had in their car warranty package.

A key difference between both of the packages is the purpose that they serve. While a used car extended warranty covers the cost of repairs due to the mechanical or equipment breakdown, car insurance helps pay for the damage done due to theft, fire or accident, etc. Liability coverage, Medical payments coverage, and Personal injury protection are offered in the car insurance while a used car extended warranty tends to cover costs for particular problems and repairs. Some additional features offered in a used car extended warranty include rental car reimbursement and roadside assistance etc.


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