What is the difference between an insurance policy and a warranty?

An insurance policy provides financial protection against loss or damage, while a warranty is a guarantee of product quality and reliability. Insurance policies are designed to protect the insured financially when unexpected events occur, such as death, illness, injury, or property damage. When an insurance policy is in place, the insured will receive financial compensation to cover any losses due to the event. A warranty, on the other hand, is a guarantee from a manufacturer or supplier that the product being purchased will meet certain specifications or be free from defects. It protects buyers from any sttributes of the product that may not work correctly or be of poor quality. Warranties are generally applicable to new products, and may be extended when purchasing an extended service contract. In summary, an insurance policy provides financial protection when an unexpected event occurs and a warranty guarantees a product’s quality and reliability. The two are different, but both provide a sense of security to buyers and other consumers.

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