Before buying two-wheeler insurance, it is always advisable to understand what kind of protection and coverage insurance will offer you. If you own a bike already or plan to buy one in the future, you must have heard about two terms – bike warranty and bike insurance.
Although both of them can provide the policyholder with financial aid during an unfortunate event like an accident, they are both very different from one another. Insurance for two-wheelers is mandatory for every bike owner in the country. However, it isn’t the same with a bike warranty.
So, in this article, we will make it easier for you to understand the exact difference between a bike warranty and bike insurance.
Difference Between Two-wheeler Warranty and Two-wheeler Insurance
Suppose you have just bought a bike, and within a week, your two-wheeler suffered a few minor scratches here and there. As you haven’t bought online two-wheeler insurance yet, you’ll have to pay for the damages from your pocket. Also, in case your bike caused any damage to someone else’s property or vehicle, you will have to pay for that as well. All of these can lead to a huge financial as well as emotional burden.
A comprehensive bike insurance plan can help to get coverage for damages, including third-party ones. Also, riding a bike without valid insurance shouldn’t even be in question in the first place as the Motor Vehicles Act, 1988 has mandated every vehicle owner in the country to at least own a third-party bike insurance policy before hitting the roads. So, opting for bike insurance will keep you, your bike as well as your pockets safe!
Now, with a bike warranty, you will have a commitment from the manufacturer of your two-wheeler about replacing any defective part in your bike. However, such a warranty is offered for limited time frames, under which faulty parts, as specified by the manufacturer, will be replaced within the stipulated period. Simply put, a bike warranty will be given to you along with all the purchase-related documents when you pay for your new bike. This, unlike an insurance policy, will not help you with financial cushioning in case of accidents or other mishaps on the road.
Types of Bike Warranties
A two-wheeler warranty, as mentioned above, is usually given to the bike owner along with the vehicle during the purchase of the latter. So, if you face any problem regarding any parts in your new bike, or if you face any manufacturing defects, the warranty will have your back. It will help you fix all those issues without you having to pay anything from your pockets. Some of these bike warranties may be specific to certain miles or certain periods. Also, some of them might only cover a few parts of the vehicle. So, it’s essential on your part to be aware of the terms and conditions of the bike warranty before purchasing the vehicle from the manufacturer.
There are two types of bike warranties; new warranty and extended warranty. Let’s dive a little deeper into these two types to help you understand their differences better.
- New Warranty: A new warranty is usually purchased along with the purchase of a new bike. Such a warranty usually comes included in the package along with the bike and might be valid for a few years, with coverage for stipulated miles.
Again, this warranty has two segments; Bumper to Bumper and PowerTrain. The first one covers the electronics of the car. The second one covers every single issue related to the engine and the transmission.
- Extended Warranty: With an extended warranty for your bike, you can extend your vehicle’s warranty period. So, once the new warranty expires, you can buy the extended warranty. However, the coverage it offers will be different from a new warranty for your bike.
Types of Bike Insurance
With online insurance of a bike, you can get financial support during any accidental damage or loss in exchange for monthly premiums. So, when you buy a new two-wheeler, you must opt for at least third-party insurance. You can also opt for the comprehensive bike insurance policy, including third-party bike insurance and an own damage cover. In some of India’s suitable two-wheeler insurance plans, you can also avail of a theft cover along with the comprehensive policy.
However, it would help if you only opted for bike insurance online from a reputed insurance company like Tata AIG. Moreover, it would be best to thoroughly research to choose an insurer with a high claim settlement ratio. Also, you need to ensure that the online purchase of two-wheeler insurance policies is safe and hassle-free.
So, now you are aware of the real differences between a bike warranty and bike insurance. Both are two very different kinds of financial protection for two-wheeler owners. For example, your bike warranty will provide coverage if your bike breaks down due to a faulty part.
On the other hand, if your bike experiences damage due to an accident or a third-party mishap, your online insurance of the bike will provide you with financial coverage. Therefore, it’s ideal to have both in place to protect your pockets from any unprecedented incident in the long run.