Purchasing a bike is a dream come true for many. When buying a bike, it is important to insure it with an insurance policy that insures it against damages.
On the other hand, bike warranty helps you get financial protection in case of faulty parts. In short, both bike warranty and bike insurance help you stay financially covered. However, the contrasting difference between the two is what sets it apart. Read on to know the difference between bike warranty and insurance cover in detail.
What is bike insurance?
Bike insurance is an agreement between the insurance company and you. In exchange for the premium you pay, bike insurance provides you with financial security against third party liabilities and damages caused to the bike. Insuring the bike with third party insurance cover is mandatory as per the law. Buying comprehensive bike insurance is completely your choice, however, it is highly recommended to buy this type of cover as it provides you with coverage for own damage as well as third party or property damages.
What is bike warranty?
When you buy a bike, the manufacturer provides you with a guarantee to replace or repair certain parts of the vehicle when required. The warranty ensures that the bike is free of any defects; it is issued for a specific time period during which you can get the parts replaced or repaired for free of cost.
What is covered under bike warranty?
Given below are the parts of the vehicle that are covered under bike warranty
- Mechanical parts such as engine, gearbox, etc.
- Electrical parts such as CDI unit, ignition coil, etc.
- Safety equipment such as ABS, ride-by-wire, etc.
What is not covered under the bike warranty?
- The below things are not covered under bike warranty
- Regular wear and tear of the vehicle
- Modifications
- Labour costs
- Negligent driving causing damages is not covered
- Illegal racing causing damages is not covered
- Any alterations or modifications made to the bike
Difference between bike warranty and bike insurance
| Coverage | Insurance | Warranty |
|---|---|---|
| Third party liability | Provides coverage against death, disability or damages caused to third party or property | Does not provide third party coverage |
| Damages caused to insured bike | Provides coverage for accidental damages caused to the bike | Does not provide coverage for accidental damages |
| Faulty bike parts | Coverage is not provided for defective faulty parts of the vehicle | Provides coverage for faulty vehicle parts and gets it repaired or replaced |
| Customization | Customize the policy by adding add-ons like zero depreciation, no claim bonus, roadside assistance, etc | Not available |
| Mandatory | Third party insurance cover is mandatory, whereas own damage is optional | This is a part of the bike purchase offered by the manufacturer. However, extended warranties are optional to purchase by paying additional cost. |
| Bike theft | Covers theft of the bike | Does not provide coverage in case of bike theft |
| Personal accident cover | This cover is mandatory and must be purchased separately | No option to purchase PA cover |
| Total loss | Provides coverage in case of total loss of the vehicle i.e. when the cost of vehicle repair exceeds 75% of the vehicle's insured declared value | No coverage is provided in case of total loss of the vehicle |
| Wear & tear | Coverage is not provided | Coverage is not provided |
| Mechanical/electrical failure | No coverage is provided | Provides coverage in case if the parts are under warranty |
| Man-made and natural disaster cover | Provides coverage in case of damages caused due to man made or natural disasters such as fire, floods, earthquake, etc. | Does not provide coverage in case of damages caused due to man-made and natural disaster |
| Fire/ explosion | Coverage is provided | Does not provide coverage in case of damages caused to the vehicle due to fire |
Bike Insurance Warranty Types
Given below are the types of warranty for bike
New warranty
New warranty on bike insurance is issued at the time of bike purchase. This type of warranty period ranges between 3-5 years, based on different parts of kilometers.
Extended warranty
This type of warranty can be purchased upon the expiry of the new warranty period. The coverage plan may vary from the new warranty.
Bike Warranty Pros and Cons
Given below are the pros and cons of bike warranty
Bike Warranty Pros
- No need to worry about faulty bike parts
- Option to avail extended warranty
- Not mandatory to buy
- Few manufacturers provide it for free or at a very low cost
Bike Warranty Cons
- It does not provide coverage for accidental damages caused to the bike
- Does not cover vehicle parts such as tyres, brake pads, etc
- Does not cover third party liabilities
- No option to add personal accident cover
- Bike warranty cannot be customized as unlike bike insurance
When purchasing a bike, it is important to understand the difference between bike warranty and insurance. Bike insurance pays for the damages, whereas, bike warranty provides coverage in case the parts are found to be defective. Hence, it is recommended that you don’t avoid buying bike insurance and check on your warranty coverage to continue staying covered.
Also Read: What You Need to Know About Making a National Bike Insurance Claim
