Buying a new motorbike can be an exciting time, but it can also feel quite overwhelming if you aren’t familiar with all the terms that come along with buying and owning one. Terms like which parts are covered under warranty and whether you need to buy insurance can confuse you, especially if this is your first time buying your own bike. Warranty and insurance aren’t the same, but many people use the terms interchangeably when talking about their motorbike. Before you choose one over the other, it’s important to understand what each has to offer and why one might be better than the other for your particular situation.
In this guide on motorbike warranty vs bike insurance, we break down these two terms and outline when they might be better suited to your needs as a consumer.
What is Motorbike Insurance?
Bike insurance is a policy you purchase to financially protect yourself in the event of an accident or theft. Comprehensive bike insurance covers damage to your bike as well as damage to other property, while a third-party policy only covers the damage done to another person and his/her property.
What is a Two-wheeler Warranty, and What Does it Cover?
A bike warranty is a service contract that covers repairs or replacements due to manufacturing defects. There are different types of motorbike warranties, depending on the type of coverage you want. Warranties can range from one year up to five years, depending on the company's policy.
Having a bike warranty offers many benefits. If something goes wrong with your motorcycle, this gives you peace of mind knowing that the warranty will cover the repair rather than paying out-of-pocket expenses.
Inclusions and Exclusions in Bike Warranty
In order to make an informed decision on whether a bike warranty or bike insurance is right for you, it's important to understand what each option covers.
Inclusions:
- Mechanical parts (engine, gearbox, etc.)
- Safety equipment (ABS, ride-by-wire, etc.)
- Electrical parts (ignition coil, CDI unit, etc.)
Exclusions:
- Damages caused due to negligent riding
- Any modifications to your bike
- Labour cost
- Damages caused due to illegal racing
- Regular wear and tear
Bike Warranty vs Bike Insurance: Which is Better?
Bike insurance and bike warranties both have pros and cons, so it depends on what you need as opposed to which one is better for you. Here is the comparison of both based on the coverage they offer:
| Coverage | Bike Insurance | Bike Warranty |
| Third-party liabilities | Third-party liabilities such as damages to third-party properties, injuries, or death of the third party are covered with bike insurance. | Third-party liabilities are not covered by the bike warranty |
| Damages to the bike | Accidental damages are covered with bike insurance. | Accidental damages are not covered under a bike warranty. |
| Faulty parts of the bike | Defective or faulty parts are not covered. | Faulty parts of your bike are covered with a warranty. |
| Customisation | You can customise your bike insurance policy by adding or removing add-ons as per your needs. | Bike warranties are not customisable. |
| Is it mandatory? | Third-party bike insurance is mandatory for two-wheelers in India. | New warranties are added when you purchase your new bike. However, it is up to you if you want to extend your warranty. |
| Personal accident cover | Personal accident cover can be added with a bike insurance policy. | Personal accident cover cannot be added with warranties |
| Theft | Theft of the bike is covered. | Theft of the bike is not covered. |
| Total loss total | Total loss is covered. | Total loss is not covered. |
| Wear and tear | Wear and tear are not covered. | Wear and tear are not covered. |
| Mechanical/electrical failure | Mechanical or electrical failure is not covered. | Mechanical and electrical failures are covered within the warranty period. |
| Man-made/natural disasters | Manmade and natural disasters are covered. | Manmade and natural disasters are not covered. |
| Fire/explosion | Fires and explosions are covered. | No coverage. |
Types of Bike Warranty
New Warranty: For those who buy a new bike, the manufacturer may offer a warranty that covers the two-wheeler against any manufacturing or defects. The validity typically ranges from 3 to 5 years, depending on the company.
Extended Warranty: These warranties typically cover the repair cost if you have an accident and need to have your bike repaired after. They also cover regular maintenance like replacing brake pads and filters and checking your tyre pressure. These can be good if you plan on keeping your bike past the first year.
Bike Warranty: Pros and Cons
When it comes to motorbikes, one of the most important decisions you have to make is whether to get a warranty or bike insurance. Both have pros and cons, so it’s important to understand the difference between them before making a decision.
Pros:
- You don't need to pay anything extra for a new bike warranty
- An extended warranty can be included
- Your bike's faulty parts are taken care of
Cons:
- Bike warranties cannot be customised
- You will not receive any coverage for accidental damage
- No add-on cover is provided with the bike warranty
- Your tyres and brake pads are not covered
- Third-party liabilities are not covered
- Personal accident coverage is not included with the warranty
Conclusion
Bike insurance is a need, not a choice for you. The law makes it compulsory. Of course, choosing the best comprehensive policy should be your goal. However, you can choose to have warranties to get covered against evils your insurance policy may not cover. For both bike insurance and motorbike warranty, glance, compare and choose the BEST option for maximum protection and benefits.
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