It is a Honda warranty not a third party.jb, the price of that third party under written insurance policy, they call it warranty, did not go up. the Dealer just marked it up to whatever he thinks he can get. sometimes a dealer will "include" it in a sale to move a piece of iron that has no audience.. it cost the dealer a couple hundred bux at most.
the insurance company has very limited exposure for only certain things that can easily be determined to be normal wear, operator error or lack of maintenance failures, so coverage is spotty at best. the biggest payout is a small percentage of the bikes diminishing value. so it is a big score win for insurance companies to write these worthless policies and it is a HUGE profit center for dealers to push them. people get emotionally sucked into this scam easily because they think they are "protecting" their new baby.
of course the more skin you have in the game, the more likely you will take exceptional care of it and not mistreat / abuse it. so again the dealer and the insurance company get a win win and you get to pay the tab to feel good. so I guess its not a whole lot different or better than drinking beer. except you get water the foliage with the later.