Motorcycle warranties are often sold by the dealer when the purchase of a new motorcycle is made. Warranties are available for used motorcycles as well. Coverage is longer for a new motorcycle than a used one. Usually about 7 years on a new bike and 4 years on a used bike. Make certain to purchase the warranty while your motorcycle is still under the factory warranty if possible. Purchasing a warranty while you are still under coverage will save hundreds of dollars a year. How do these companies scam people? The date the coverage goes into effect is critical. What generally happens when an extended warranty is purchased is they put the policy in effect immediately. This, means they are covering you for the period of a year or so that the factory warranty is in effect. This takes a year off the time you are actually covered by the company providing the extended warranty. The date the extended coverage becomes effective should be when the factory coverage expires.
Is the coverage transferable if you decide to sell your bike? This is a selling point if the buyer has the peace of mind that it is under warranty. Ask questions, and get the answers in writing. This will prevent mistakes that can cost you money later on. If you were buying a bike and looking on eBay, how much more likely would you be to bid more on a bike that was under warranty?
Check with at least four or five companies before making your decision. Get out the pencil and paper and compare each to another and see who offers the most for the money. A hasty decision may cost you hundreds of dollars and it doesn’t have to happen if you plan ahead. Be aware of out of pocket expense for the areas of : engine repair, transmission repair, fuel system, electrical, and gauges.
Motorcycle warranties will vary in coverage amounts, cost of premiums, and what exactly is covered. Get what you need, you are the customer. Here are a few average repair cost to keep in mind when comparing out of pocket expenses and premiums for a motorcycle warranty. Average being the middle ground as some are lower and some higher. Engine repair $4400.00, Transmission repair $2400.00, Fuel system $1300.00, electrical $950.00, gauges $650.00. The warranty should cover this with little to no out of pocket expense or it is a waste of money.
Don’t make the assumption that things are covered just because you have a motorcycle warranty. You have got to ask questions or they will not tell you the information to make an informed decision. Knowing what repairs, and services cost will aid in your decision as to what company is offering you the most warranty for your money.
There are a few basic questions you may want to ask when talking to a company about a motorcycle warranty. Is pick up and delivery covered? Do they offer rental reimbursement? Are travel expenses covered? What is the coverage area, is it statewide, or nationwide? How about if you run out of gas? Find out about roadside assistance and whats covered. What is the duration of the warranty and when is it effective? Is the warranty transferable if you sell your motorcycle?
Get the most for your money. Know what you are going to ask before talking with a company regarding a motorcycle warranty. Extending the factory warranty is another consideration. A warranty that is transferable will increase the resale value, and be a great selling point. Consider several options be for arriving at a decision.Be aware of what the cost are for repairs and services that the warranty covers. Don’t be scammed out of years worth of coverage, make sure you know the effective date.
Data compiled from author’s personal experience and information from the AMA ( American Motorcycle Club )