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Your cars auto warranty is a form of insurance against any problems that might come up. But how do you tell the difference between what is covered by your warranty, and what is covered by your auto insurance? Take these instances, and see if you can figure out which ones are warranty situations, and which ones would be something for the insurance company to deal with.

A. You are driving your new car home from the dealership when you hear a loud grinding noise. You take it back to be checked, and the mechanic on duty tells you it is likely a problem with the transmission.

B. You are driving on the highway, when another vehicle stops suddenly in front of you. You press down on your brakes, but nothing happens, and you hit the other car. Thankfully, there is only minor damage to your vehicle. When they check your car, it turns out that the brakes had failed. You need to have the brakes replaced, as well as the front bumper.

C. You are driving on a rocky road, and you bottom out the car on a particularly large rock. The rock impacts your transmission pan, causing damage to the transmission that requires a complete replacement.

The answer for A is, that would be something covered by your warranty. It seems to be a part failure, and you should be covered to have the transmission either repaired or replaced. There was nothing that you did - the transmission would have failed, no matter who was driving or what they were doing. It was an internal problem that originated with the installation or building of the part itself.

The answer for B is that, while it was a parts failure that caused the accident, it would likely be something that would be covered by your insurance claim on the collision. The additional damage will need to be repaired. The insurance company may enquire with the warranty people, but that will not be your concern.

The answer for C is that it is strictly an insurance claim. While it is a part of the powertrain that is damaged, the problem occurred not due to a failure or problem with the part, but because of an impact that happened while driving the vehicle. Without the rock strike, the transmission would have continued to operate without problems.

Your cars auto warranty is meant to cover issues that are the result of faulty parts or installation, while your vehicle insurance will cover issues that result from actions or situations that impact otherwise properly working parts of your car, and impair their ability to operate.