Difference Between Bike Warranty and Bike Insurance Policy

Many people confuse a bike warranty with a bike insurance? However, there is a contrasting difference between a bike warranty and bike insurance. Let us understand it in this post.

Buying a bike comes with an added responsibility of buying a reliable bike insurance policy immediately so that you could follow the mandatory rule of having bike insurance and protect your bike against unforeseen damages.

Like bike insurance that potects a bike against unfortunate damages, a bike warranty guards bike owners against faulty bike parts. Thus, be it bike insurance or a bike warranty, both help the bike owner to stay financially protected against the expenses incurred on your bike due to damages or faulty parts.

But there are distinct differences between the two, which set them apart. Let us understand the main differences between bike insurance and bike warranty in detail below.

​What Do You Understand By Bike Insurance?

Bike insurance is a policy where the policyholder pays a certain amount as premium to the insurer in return of monetary security against third-party liabilities as well as own damages caused to your bike. As you know, a third-party coverage is a compulsory requirement for every vehicle as per the Motor Vehicle Act of India. So, it is a must have for every person owning a bike. Comprehensive plan on the other hand is not a compulsory requirement. However, this plan is recommended for bike owners as it covers both third party liabilities as well as protects your own bike against unforeseen damages.

What do you Understand about Bike Warranty?

Bike warranty is the guarantee offered by the manufacturer of your bike at the time of buying the vehicle. The warranty that comes with a new bike states that certain parts of the bike would be replaced if they are damaged within the specific warranty period. Thus, the warranty makes sure that your bike stays without any defects or defective parts. However, the free repair or replacement of the defective parts can be done only during the particular warranty period.

What is covered in bike warranty cover?

A bike warranty covers the below mentioned parts of vehicle during the warranty period:

• Engine, gearbox and other mechanical parts
• CDI unit, ignition coil and other electrical parts
• ABS, ride-by-wire and other safety equipment

Things That a Bike Warranty Doesn’t Cover

Here is a list of things not covered under bike warranty:

• It doesn’t cover normal wear and tear of bike
• It doesn’t cover labor costs
• It doesn’t cover any damage caused due to negligent driving
• It excludes damages caused due to illegal racing
• It also excludes any alterations or modifications done to your bike.

Difference Between Bike Warranty and Bike Insurance

Below are some key differences between bike insurance and bike warranty:

Coverage	Insurance	Warranty
Damages to the Insured Bike	It covers against own bike damages caused due to accidents etc.	It doesn’t cover damages caused by accidents
Faulty bike parts	It doesn’t cover against faulty vehicle parts	It repairs or replaces faulty vehicle parts
Third-party liabilities	It covers for all liabilities related to third-party	It doesn’t cover for third-party liabilities
Legal Requirement	A third-party insurance is a compulsory requirement. However, Own-damage cover is optional	Warranty is offered by the manufacturer. Extended warranty can be purchased. However, they are not compulsory
Customization	It can be customized by various add-ons, such as NCB, Zero Dep. etc.	It doesn’t offer customization
Mechanical/Electrical failure	It doesn’t cover for such failures	It offer coverage in case the bike is under the warranty period

What are the Bike Warranty Types?

There are various kinds of bike warranty available as mentioned below:

New warranty – It is the warranty offered at the time of buying the bike and it may range between 3-5 years on different parts of the bike.

Extended warranty – An extended warranty can be bought after the expiry period of the new warranty and the period of this warranty is different from the new one.

Bike Warranty Pros and Cons

Pros

• It limits your worries regarding faulty bike parts
• It allow you the option to get extended warranty
• Warranty is not mandatory for bike owners to buy
• Some manufacturers offer free warranty or offer it at minimal cost

Cons

• Warranty does not cover your bike from accidental damages
• Tyre, brake pads and other parts are not covered under warranty
• It does not cover any liabilities of the third party
• It doesn’t allow any option to add personal accident cover
• And like bike insurance, you can’t customized bike warranty