Insurance is usually provided by a regulated entity and implicitly backed by the government in the even that the insurer fails. Their regulators also provide redress for consumers against unfair treatment without the need to resort to the courts and the terms usually have to be fair too.

Warranties are typically provided by the vendor who may well be financially unsound and willing to treat a customer less fairly, contain significant legal loopholes and require redress through the courts or perhaps a binding arbitration tribunal.