Difference Between Bike Warranty and Bike Insurance

Individuals may come across two terms when purchasing a bike – insurance and warranty. People often confuse these terms with each other. However, individuals searching for “bike warranty and bike insurance” will find many contrasting differences that sets them apart.

So, without any further ado, let’s draw a comparison between bike warranty and insurance.

Team Digit

What Is Bike Warranty?

A vehicle manufacturer provides you with a warranty for a bike. This warranty extends for a particular period. During this period, a manufacturer promises to replace any of the defective parts of your motorbike.

What Is Bike Insurance?

Bike insurance is an agreement between an insurance company and you. In this agreement, you will have to pay a premium in exchange for coverage from third party liabilities or your own in case of an accident.

Purchasing insurance to cover third party liabilities is mandated by the government.

Moreover, you can also select a comprehensive insurance plan that covers both third party liabilities and own damages.

Bike Insurance vs Bike Warranty

The table below narrows down the significant differences between a bike insurance and bike warranty.

Coverages	Bike Insurance	Bike Warranty
Third-party liabilities	Third-party property, injuries and death covered	Not applicable.
Damages to the insured bike	Covers accidental damages of insured bikes.	Not applicable
Replacing faulty parts of the bike	Not applicable.	Covers faulty parts and gets it replaced.
Customisation	Includes valuable add-ons to extend the coverage.	No customising is allowed or available.
Is it compulsory?	Own Damage insurance is optional, but Third-party Liability Plan is compulsory.	Warranty is included at the time of purchase. However, extended warranties are optional.
Personal Accident (PA) cover	Have to buy separately.	Not Applicable
Bike Theft	Covers bike theft.	No coverage.
Total loss (damages that are beyond repair)	Covers the total loss.	No coverage.
Usual wear and tear	No coverage.	No coverage.
Mechanical or electrical failure	No coverage.	Covers mechanical/electrical failure within the warranty period.
Man-made or natural disasters (cyclones, floods, riots, vandalism, etc.)	Also covers artificial or natural disasters.	No coverage.
Fire or explosion	Coverage offered.	No coverage.

Hence, these constitute two different forms of financial coverage. If any of your bike’s parts become faulty within a specified period, you may apply for a warranty. Conversely, if the bike is damaged due to an accident, the insurance policy should cover the costs.

Knowing the difference between bike warranty and bike insurance, you now know what to opt for in different scenarios.

Frequently Asked Questions

All

How many types of bike warranties are there?

The two types of warranties are the new warranty and the extended warranty. In the new warranty, you purchase it at the time of purchase of the bike. It lasts for 3 to 5 years or is based on the number of kilometres. After the new warranty expires, you can purchase an additional one, but it will have different terms than the first one.

What is not covered under a bike warranty?

Labour costs, regular wear and tear, modifications, illegal racing, which may have led to damages, and negligent riding are not covered under a bike warranty.