How Zero Depreciation Policies Save You Money?

Having your bike gives you both convenience and freedom, but it also comes with responsibilities, like securing the right insurance policy. Though third-party bike insurance is a basic form of bike protection, it doesn’t account for the depreciation of bike parts, which may require additional payments in the event of an accident.

This is where zero depreciation bike insurance comes in handy. It affords better protection by excluding costs for which you should not be held accountable due to depreciation. So, let’s learn how zero depreciation policies help you save money and why they are a wise choice for bike owners.

What is Comprehensive Bike Insurance?

A two-wheeler comprehensive insurance policy provides coverage for third-party liabilities and damages to your bike caused by accidents, theft, or natural disasters. It offers broader protection than third-party insurance, ensuring financial security in various situations. 

However, comprehensive bike insurance factors in depreciation during claim settlement, meaning you bear the cost of wear and tear on parts.

What is Zero Depreciation Bike Insurance?

A zero depreciation bike insurance is an add-on cover with comprehensive or own-damage bike insurance policies. It offers enhanced coverage by eliminating depreciation deductions during claim settlements, ensuring you receive the full cost of repairs without factoring in wear and tear.

While zero depreciation policies make comprehensive bike insurance plans more expensive, they provide significantly better coverage when a claim is made. In contrast, standard plans offer lower premiums but come with limited coverage.

How Zero Depreciation Policies Save You Money in Bike Insurance?

Here is how zero depreciation policies can help you save money on comprehensive bike insurance:

1. Lower Out-of-Pocket Costs

Batteries, tyres, and other custom fittings can be costly to repair or replace after an accident. Standard policies only cover the depreciated value, leaving you to pay the difference out of pocket. However, with zero depreciation coverage, depreciation is not factored into the claim, relieving you of this financial burden.

2. Full Coverage for Repair Costs

The repairs of custom bikes are generally expensive because vendors fit them with unique parts. Most standard insurance policies might not cater to all these costs, so you must dig deep into your pocket. Zero depreciation insurance fully compensates for the repair cost, meaning the insured does not incur additional charges.

3. Retaining the Bike’s True Value

High-end and customised bikes come with costly, exclusive parts that depreciate quickly. Under a standard policy, this depreciation lowers the claim amount. With zero depreciation coverage, the full repair cost for components like custom exhausts or specialised paint jobs is included, helping preserve the bike’s original value.

4. Avoiding High Replacement Costs

Custom bikes often require unique, high-priced replacement parts that can strain your finances. Standard insurance covers most of these expenses, but zero depreciation insurance absorbs these costs fully. This makes it ideal for high-value bike owners who want complete protection.

What Should You Consider Before Opting for Zero Depreciation in Bike Insurance?

Zero depreciation insurance offers excellent coverage, but there are a few factors to consider before choosing this add-on.

1. Higher Premium Costs

Zero depreciation policies come with a slightly higher premium compared to standard insurance. However, the comprehensive coverage and savings on repair costs often make it a valuable investment in the long run.

2. Limited Eligibility

This add-on is usually available for new bikes, typically up to 5 years old. You may not qualify for zero depreciation coverage if your bike is older or shows significant wear and tear.

3. Claim Restrictions

Some zero depreciation policies limit the number of claims you can file during the policy period. Reviewing the terms and conditions carefully to understand how many claims are allowed and avoid surprises later is important.

4. Policy Exclusions

Like any other insurance, zero depreciation coverage has exclusions. Damage caused by reckless driving, mechanical breakdowns, or intentional actions may not be covered. To avoid confusion, thoroughly review the policy details to understand exactly what is and is not included.

Who Should Consider Zero Depreciation Two Wheeler Insurance? 

Following is a list of individuals who should consider zero depreciation two-wheeler insurance:

• Getting a zero depreciation cover is highly recommended if your bike is under five years old.
• This add-on can provide extra financial protection if you regularly travel on roads prone to accidents.
• For newly purchased bikes, zero depreciation cover is a smart choice to safeguard your investment.
• Owners of high-end bikes can benefit greatly, as this cover ensures full protection against damage costs.

How to Buy Zero Depreciation Bike Insurance Online?

Follow the step-by-step procedure to buy bike insurance online:

Step 1: Enter your bike’s registration number on the insurer’s website or portal. 

Step 2: Select the policy type and check the available plans and prices.

Step 3: Choose a comprehensive insurance plan and add the zero depreciation cover as an add-on option. 

Step 4: Tap on the ‘Continue’ button to move ahead.

Step 5: Accurately fill in your personal details, nominee information, and vehicle-related details. Once you have done this, proceed to the payment section.

Step 6: Make the payment and complete the mandatory KYC verification process as required.
Your policy document will be sent to your registered email or mobile number. You can also access it anytime by logging into your insurer’s portal.

Thus, zero-depreciation bike insurance effectively reduces out-of-pocket expenses and ensures maximum coverage for repairs in case of accidents or damages. Although the premium may be slightly higher, the financial protection and comprehensive benefits it offers often justify the additional cost.

Ultimately, securing your bike with zero depreciation insurance gives you peace of mind and lets you enjoy your rides without worrying about unexpected expenses.