Difference Between Bike Warranty & Bike Insurance

When you purchase a new bike then insuring it with the right two-wheeler insurance plan gives you an extra layer of financial protection. Whereas a bike warranty is a type of feature that is offered by your motorbike dealer to replace faulty bike parts. Both of them provide a sense of financial security but have different significance. In this article, you will understand the difference between bike warranty & bike insurance.

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How Does Bike Insurance Protect Your Pocket?

Meaning of Bike Insurance

Two-wheeler insurance (commonly known as bike insurance) shields vehicle owners from several unforeseen occurrences that cause damage to their own vehicle or any third party.In India, purchasing third-party bike insurance is mandatory as per the Motor Vehicle Act whereas buying own-damage cover depends on the bike owner.

Significance of Bike Insurance

A two-wheeler insurance policy offers all-rounder protection to the bike owner against damages from several unpredicted circumstances. It offers financial coverage to the insured vehicle and protects you from spending several expenses that you would have to pay from your own pocket to repair those damages.

How Does Bike Warranty Keep Your Savings Intact?

Meaning of Bike Warranty

A bike warranty is a commitment offered by the manufacturer of the bike to repair or replace the faulty part of the bike. When you purchase a bike, the manufacturer offers a warranty for a specific period.

Significance of Bike Warranty

Under the bike warranty, the manufacturer commits to replace the defective part of the bike within the specified period. The best part about the bike warranty is it works without paying additional costs to the manufacturer.

What Is Covered Under Bike Warranty?

Here are the things covered under the bike warranty-

  • Mechanical parts such as gearbox, engine, etc.
  • Safety equipment such as ABS, ride-by-wire, etc.
  • Electrical parts such as CDI unit, ignition coil, etc.

What Is Not Covered Under Bike Warranty?

Several things are not covered under the bike warranty, such as-

  • Labour cost
  • Consumables (plastics, rubber, washers, nuts & bolts, engine oil, lubricants, etc.)
  • Regular wear and tear
  • Modifications or alterations in the bike
  • Illegal racing led to damages
  • Negligent riding led to damages

Bike Warranty vs. Bike Insurance

The difference between the bike warranty and bike insurance is mentioned in the table below-

Coverage Bike Insurance Details Bike Warranty Details
Third-party liability Insurance covers third-party liabilities such as vehicle damage or injury during an accident. Does not provide cover for third-party damages.
Damage to the insured bike Accidental damage is covered. Does not provide cover for damage caused to the bike in an accident.
Faulty bike parts Does not cover or pay for faulty bike parts. Does provide cover for the faulty bike parts and replaces them without paying an additional cost.
Customization The policyholder can get this purchase add-on cover to customize their policy. Does not provide cover for customization. However, you can extend the bike warranty if you can want.
Is it mandatory? Third-party liability is mandatory whereas own damage cover is optional. The manufacturer offers a bike warranty at the time of purchasing a new bike for a specified period.
Bike theft Bike theft is covered under a comprehensive bike insurance plan. Bike theft is not covered.
Total loss The comprehensive plan covers the total loss. Total loss means if the bike is damaged to such an extent that it cannot be repaired. Does not provide cover for total loss.
Personal Accident (PA) cover It is a mandatory cover that the bike owner must purchase separately. There is no option to buy this cover.
Wear & Tear Not covered Not covered
Electrical/Mechanical failure Not covered Covers electrical/mechanical failure within the warranty period provided by the company.
Natural disaster cover/Manmade disaster cover Provides cover for manmade and natural calamity damage. Does not provide cover for manmade or natural disaster damages.
Fire/Explosion It is covered under the insurance plan. No coverage is provided.

With the help of the above table, it is understood that both the bike warranty and bike insurance provide a sense of financial protection against several losses or damages caused to the bike. However, the difference between these two is this- a bike warranty comes along with the purchase of the new bike whereas third-party bike insuranceis mandatory to purchase. However, it is recommended to purchase a comprehensive insurance plan to get coverage for your own damages as well as purchase personal accident coverage separately.

Types of Bike Warranty

When you purchase a bike, the bike company provides a warranty for a specified period. There are two types of warranty provided by the bike company-

  1. New Warranty

    Generally, the bike company provides a warranty for a period of 3 to 5 years. It varies from one manufacturer to another.

  2. Extended Warranty

    Once your new warranty expires, you can purchase an extended warranty. However, the coverage may differ from the new warranty.

Pros & Cons of Bike Warranty

Here are the pros and cons of a bike warranty-


  • No need to worry about faulty parts of your bike.
  • You can include an extended warranty.
  • No additional cost is required for a new bike warranty.


  • No coverage is provided for accidental damage.
  • No coverage for the tyres and brake pads.
  • You cannot include any add-on cover.
  • No coverage is provided for third-party liabilities.
  • You cannot include personal accident coverage.
  • You cannot customize the bike warranty.


The bike company provides a bike warranty whereas several insurance companies in India provide bike insurance policies. A bike warranty is utilized to replace the faulty bike parts whereas bike insurance provides cover for damages caused to the bike in unforeseen accidents. You can extend the bike warranty by paying an extra amount similarly; you can purchase add-on covers with your comprehensive bike insurance plan to extend the coverage of the policy.

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

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