Read about Is a bike warranty better than a bike insurance policy. For more information, check out the bike insurance policy from Kotak General Insurance.
Bike insurance is nothing but a contract between you and your insurance provider for any mishaps to your bike. In this agreement, you pay a monthly fee to your insurer for the financial protection of your bike against third-party liability or damage against natural calamity, accidents, or theft.
On the other hand, a bike warranty is a guarantee from your manufacturer that your vehicle will be replaced or repaired if any damage occurs. It protects you from heavy financial losses in case of any unfortunate events. This means if any damage occurs during the warranty period, the manufacturer will bear the cost and won’t charge you. Bike warranty is usually of two types - New Bike Warranty and Extended Bike Warranty.
New bike warranty: It comes when you first purchase a bike and is mostly valid for 3-5 years or depending on the kilometers.
Extended bike warranty: Once your new warranty is over, you can extend your warranty (or you can also purchase bike insurance) by purchasing it. In this case, the coverage plan might differ.
So, both provide security & comfort. But every time, the debate is about which one is better: Two-Wheeler Insurance or Bike Warranty.
There’s only one way to find out is to find the differences and also what makes them unique.
Faulty parts of the bike
Does not cover or pay for the faulty parts.
Covers faulty parts and gets them replaced.
PA (Personal Accident Cover)
PA must be purchased separately.
No option to purchase PA.
Is it mandatory?
Third-party liability is mandatory, while own damage cover is optional.
Warranties can be extended per your choice. However, new bikes always get a warranty.
Covers damage to the third party’s property, injuries, or death.
Does not cover third-party liabilities.
You can get valuable add-ons as per your requirements.
No add-ons are available.
Damages to the insured bike
Cover accidental damage to the insured bike.
Does not cover accidental damage to the insured bike.
Usual wear and tear
Covers bike theft
Does not cover bike theft.
Damages beyond repair or Total loss
Cover total loss
Does not cover the total loss
Mechanical or Electrical failure
Covers mechanical and electrical failures under the warranty period.
Fire or explosion
Covers accidents caused by fire or explosion.
Does not cover
Manmade or Natural disaster
Covers manmade or natural disaster
Does not covers manmade or natural disaster
The bike warranty and bike insurance are two different protections for your bike. Though a bike warranty does not cover some situations, Two-Wheeler insurance covers most of the damages caused due to fire, natural disaster, theft, etc. Also, it is advisable to have both protections to be safe in all directions.