Bike Warranty V/S Bike Insurance

A Bike Insurance Policy is a contract between you and the insurance company. You pay a premium in exchange for financial protection against third-party bike insurance requirements and unintended damages/losses to your bike. Even though the government-mandated Third Party Liability Plan does not cover damages or losses to your bike, you must ensure it. A bike warranty is a promise from the manufacturer to replace or repair your vehicle if it breaks down. A warranty protects you from unanticipated or unexpected financial loss due to a problem with the bike. When a vehicle manufacturer gives a warranty, it guarantees that the bike will be free of faults for the duration of the warranty. If there are any faults during the warranty term, the manufacturer will replace or repair the damaged part at no cost to the customer.

Which is better: a bike warranty or bike insurance? 

The following are the primary distinctions between a bike warranty and a bike insurance policy:

• In bike insurance, third-party liabilities cover damages to third-party property, injuries to third parties, or death, but third-party liabilities are not covered in bike warranties.
• Accidental damages to the insured bike are covered by bike insurance, however accidental damages to the insured bike are not covered by bike warranty.
• Bike components that are defective are not covered or paid for by bike insurance, however, defective parts are covered and replaced by a bike warranty.
• Insurance for bicycles may be customized. Include essential add-ons to prolong coverage, but there is no way to customize a bike warranty.
• It is required in the event of bike insurance, while Own Damage insurance is optional. The Third-Party Liability Plan is required in the case of bike warranty, although new warranties for new two-wheelers are included in the purchase price. Extended bike warranties, on the other hand, are an option.
• In bike insurance, the necessary Personal Accident (PA) protection must be purchased separately, thus there is no opportunity to obtain a PA policy.
• Bike theft is covered by bike insurance. It covers bike theft, but a bike warranty does not include coverage for bike theft.
• There is no coverage for normal wear and tear in a bike warranty, whereas there is no coverage in a bike warranty.
• Mechanical/electrical failure is not covered by bike insurance, although mechanical/electrical failure is covered by bike warranties within the warranty term.
• Man-made or natural calamities (cyclones, floods, vandalism, riots, etc.) are covered by bike insurance, but not by bike warranty.
• Bike insurance protects losses in the event of a fire or explosion, but bike warranties do not.

Both the bike warranty and bike insurance give financial protection against unanticipated losses or damages to the bike, as stated above. There is, however, a distinction to be made between the two. While a bike warranty covers defective parts, bike insurance covers accidental damage or loss to the insured bike. Both sorts of financial protection are advised since you can be comfortable that insurance will cover accidental damage and bike warranties will cover faulty bike parts.

Take Away

Bike warranties and insurance are two forms of financial protection that try to safeguard you and your bike in different ways. As a result, if your bike breaks down due to faulty parts, your bike warranty will cover you, and your bike insurance will cover you if your bike is destroyed in an accident. As a result, having both forms of financial coverage ensures that you are covered in the event of faulty components or unintentional damage.

Also Read:

All you need to know about Tata AIG two-wheeler insurance

Why Should You Purchase a Bike Insurance Policy from TATA AIG?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.