We may speak the same language but the breakdown insurance market seems to have developed in a different way to here in the UK. For a start few Americans know the term breakdown cover and roadside assistance seems to describe it better for them, but if you were look at what is markets the most, the car warranty seems to be a forefront.

I suppose the difference between warranties and say breakdown cover, is the first covers the parts, often covers any work done within a garage, where the UK’s breakdown cover, is purely a service to get you going from the road, or transport your car to a place of your choice depending on the level of protection you have.

Of course even in the UK, new cars are covered by warranties, but it is rarely combined with a recovery service and the work normally has to be done by the correct dealer who has the contract with the manufacturer. Things seem to be more flexible in the States. You can buy warranties, even if your car is over a certain age, and they are prepared to use third party garages to repair the problems.

Warranties can be for a selection of areas on your vehicle of for everything. The example we have below is from a company called Automotive Protection, which focuses on the mechanical side only. So for instance suppose your stitching on your seat were to come away, this would not be covered, where on a new car warranty it would be.

USA does have breakdown cover services as well, or should we say roadside assistance, with triple A being the best known. But the warranty side is much bigger than here in the UK and it is surprising that the big 3 breakdown cover providers, namely the AA, RAC and green Flag have not entered that market in a large way.