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Differentiating Bike Warranty & Bike Insurance


Written by Sumit Arora

Updated Dec 28, 2021

Is a Bike Warranty or Bike Insurance Better? This essay will go through the differences between bike insurance and warranty.

A contract between you and the insurance provider is referred to as a Bike Insurance Policy. You pay a monthly fee in exchange for financial protection against third-party bike insurance obligations and unintentional bike damages or losses. You must ensure your bike even if the government-mandated Third Party Liability Plan does not cover damages or losses. A bike warranty is a guarantee from the manufacturer that your vehicle will be replaced or repaired if it breaks down. A warranty protects you from financial loss due to an unplanned or unexpected problem with the bike. A warranty assures that the bike will be free of defects for the length of the warranty. If a failure occurs during the warranty period, the manufacturer will replace or repair the defective part at no cost to the client.

Differentiating Bike Warranty & Bike Insurance

Is a Bike Warranty or Bike Insurance Better?

The main differences between a bike warranty and a bike insurance coverage are as follows:

  • Third-party liabilities are covered by bike insurance for damages to third-party property, injury to third parties, or death, but they are not covered by bike warranties.
  • Bike insurance covers accidental damage to the insured bike; however, the bike warranty does not cover accidental damage to the insured bike.
  • Bike insurance does not cover or pay for damaged bike components; however, a bike warranty does cover and replace defective parts.
  • Bicycle insurance may be tailored to your specific needs. Include necessary add-ons to extend coverage, but a bike warranty cannot be customized.
  • In the case of bike insurance, it is mandatory, whereas Own Damage insurance is optional. Although new warranties for new two-wheelers are included in the purchase price, the Third-Party Liability Plan is necessary in the case of bike warranties. On the other hand, extended bike warranties are available.
  • Because the requisite Personal Accident (PA) coverage must be obtained separately from bike insurance, there is no way to obtain a PA policy.
  • Theft of a bicycle is covered by bike insurance. Bike theft is covered, however, bike theft is not covered by a bike warranty.
  • A bike warranty does not cover regular wear and tear, whereas a bike warranty does not cover typical wear and tear.
  • Mechanical and electrical failures are not covered by bike insurance, although they are covered by bike warranties within the warranty period.
  • Cyclones, floods, vandalism, riots, and other man-made or natural disasters are covered by bike insurance, but not by bike warranties.
  • Bike insurance covers damages caused by fire or explosion, while bike warranties do not.

As previously indicated, both the bike warranty and bike insurance provide financial protection against unplanned losses or damages to the bike. There is a distinction to be drawn between the two, though. While a bike warranty covers faulty parts, bike insurance protects the insured bike's accidental damage or loss. Both types of financial protection are recommended since you can be assured that insurance will cover accidental damage and that bike warranties will cover defective parts.

Take Away

Bike warranties and insurance are two types of financial protection that work in different ways to protect you and your bike. As a consequence, your bike warranty will cover you if your bike breaks down due to faulty parts, and your bike insurance will cover you if your bike is damaged in an accident. As a consequence, having both types of financial coverage guarantees that you are protected in the case of malfunctioning components or accidental damage.


Written by Sumit Arora

Sumit is an insurance industry veteran with more than 20 years in the industry. Sumit is a frequenRead More

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