Having a bike makes it so much simpler to navigate through everyday traffic and travel quickly to your destinations. However, there may be times when your bike may have a breakdown or mechanical failure that requires repair but if your bike is under warranty, you can tide over such times. But have you ever given a thought to what will happen when the warranty period is over. Or what would you do in the case of an unfortunate accident that damages your bike.
This is where insurance comes into the picture. With increasing traffic and accidents on roads, insuring your vehicle is a top priority especially when you own a two-wheeler. Bike insurance lessens the burden of any accidental damage repair expenses and safeguards your hard-earned savings. But isn’t that what a warranty does too? Well, to be exact, it’s not entirely the same. Warranty and insurance have some differences. Here, in this article, we will help you understand the difference between the two so you can make a wise choice.
But first let us brief you about what is bike insurance and what is bike warranty?
What is Bike Insurance?
A bike insurance policy is an agreement between the insurance company and you (policyholder). You pay a premium amount in return for financial security against damage caused due to third-party or own damage. Also, it is important that you get your vehicle insured with third-party bike insurance which is mandatory by law.
What is a Bike Warranty?
A bike warranty is a commitment by the manufacturer who guarantees to replace or repair your vehicle if required. A warranty acts as a shield against unforeseen or sudden financial loss due to a defect in the bike.
When the vehicle manufacturer issues a warranty, it gives an assurance that the vehicle is free from defects. In case any defects occur while the vehicle is still in the warranty period, it becomes the responsibility of the manufacturer to replace or repair the defect without any additional costs to the customer. Mechanical parts, safety equipment, and electrical parts are covered under the warranty.
Now let’s move ahead onto their differences.
Difference Between Bike Insurance and Warranty
To help you understand the difference between insurance & warranty, we have created a table with details of coverage offered. Have a look at the following:
| Coverage | Bike Insurance | Bike Warranty |
| Third-party liabilities | Damages caused to third-party property, injuries, or death to third-party are covered. | It does not cover third-party liabilities. |
| Damages to the insured bike | It covers accidental damages to the insured bike. | Accidental damages to the insured bike are not covered. |
| Faulty parts of the bike | It does not pay or offer coverage for defective parts of the bike. | Replacement and repair of faulty parts of the bike are covered. |
| Customization | Includes valuable add-ons to extend coverage. | No customization available |
| Mandatory | While the Own Damage insurance is optional, the Third-party Liability Plan is mandatory. | New warranties for new two-wheelers are part of the purchase of the bike. However, extended bike warranties are optional. |
| Personal Accident (PA) cover | PA cover is compulsory. It must be bought separately. | No option to purchase a PA cover. |
| Theft | Insurance covers the theft of the bike. | It does not cover bike theft. |
| Total loss (damages that are beyond repair) | It covers the total loss. | Warranty does not cover total loss. |
| Mechanical/electrical failure | No coverage. | Covers mechanical/electrical failure within the warranty period. |
| Man-made/natural disasters (cyclones, floods, vandalism, riots, etc.) | Cover man-made or natural disasters. | Does not cover man-made or natural disasters. |
| Fire/explosion damages | Covered. | Not covered. |
Now that you know the differences between insurance and warranty, we are sure you will understand the importance of having your bike insured. To get your bike insured, visit the Bajaj Finserv App and compare plans from leading insurers on our platform. What’s more, you also have a host of add-ons to choose from. Make a smart choice with insurance, now!
