Is this an extended warranty you are paying for, or insurance?

From my knowledge, insurance is for accidents (collisions and such), warranty is for your vehicle taking a shit (parts going out). I'm not that well versed either though, so this would be interested for me to actually learn about haha.

I tacked an extra $3k on to my car when I bought it so anything that goes wrong will be covered up to like 90,000 miles or something like that. But, I still have to pay toward insurance every month as well, just in case of accidents (which is why I think everyone is confused).

edit: sorry for off topic, I'm just legitimately curious about the 'insurance' thing as I didn't know you could get parts warranties that you can pay for monthly.

This post was edited by bnrhodes2 on Dec 30 2014 03:44am

AFAIK some insurance companies offer extended warranties as well as comp and collision.

Geico does this. They offered me one on my Camaro. It was actually quite a bit cheaper than the manufacturer's extended warranty.

It sounds like he has a full service contract that includes wear parts and routine maintenance.

Insurance companies are getting into all sorts of things now. State farm offered me to refinance my challenger through them as well. IIRC they were right at 2.1% on a 60 month loan for a year old car.

Yeah. Covers pretty much everything. They will only cover if the vehicle isn't over 8 years old.