Do you need a motor insurance plan even if your vehicle is under warranty?

Car insurance and warranty are very important for your car. However, there is no comparison between the two - they are completely different elements of protection that are designed to complement each other. Unfortunately, some car owners feel that, if they have one, they don’t need the other. It is due to this misconception that many of them even fail to renew their insurance policies. Keeping this in mind, the following article will explain both and explain why you need insurance despite having multiple years of warranty for your car.

Vehicle warranty:

Vehicle warranty is what keeps you insulated from bills that arise due to any manufacturing or material defects. It’s a written guarantee that the car manufacturer will bear the cost of repairs or replacement in case your car’s parts do not work as promised for a certain period of time. Most manufacturers will provide standard warranty when you buy the car and offer the option of extended warranty to get protection from malfunctions after the standard warranty is over. 

Motor insurance:

On the other hand, car insurance covers the cost of repair or replacement of your car or its parts in case of an accident. Most plans will also cover theft & damages due to man-made and natural calamities. In case of such unfortunate events, the insurance company will provide compensation as per the agreed terms of the insurance contract.

So why do I need car insurance if I have a warranty?

One reason is that accidents can happen at any time and your warranty will not cover the repair costs; it only provides compensation if the damages occurs due to defect. Any and all collision related damage is not covered by warranty. Moreover, warranty does not cover damages or total loss due to theft, riots, natural/man-made calamities, etc.

Car insurance is mandatory.

After your standard warranty expires, it is your choice if you want to purchase an extended warranty or not. However, having a motor insurance plan is mandatory right from the time you drive your vehicle home from the dealership and it is also compulsory that you renew it every year. It is mandatory as per low to have at least a basic third party insurance to operate your vehicle on Indian roads. This form of insurance covers only damages & injuries caused to a third party in an accident you are involved in. Again, this is something the warranty does not provide.

As you can see, there are a number of reasons why you need car insurance, regardless of whether you have a warranty or not. So if you’ve been thinking of skipping on your car insurance renewal just because you have just purchased extended warranty, it best you drop the idea and keep your policy intact. It will help keep your car in mint condition no matter what unfortunate events life throws your way.

Hope this has been helpful, good luck and drive safe!