The value of the bike starts depreciating once it is out of the showroom because of multiple reasons. Depreciation happens as the bike gets older and undergoes wear and tear due to the frequency of use. These factors also impact your motor insurance claim. Insurance companies usually deduct the vehicle’s depreciating value while settling the claim, unless you have a zero depreciation cover.
What is zero depreciation bike insurance?
Zero depreciation bike insurance gives full coverage without deducting the depreciation value of your bike. Zero depreciation bike insurance gives full coverage without deducting the depreciation value of your bike. So, you can settle your claims without any deductions for depreciation in case of an accident or theft.
Benefits of zero depreciation bike insurance
Here are some benefits of buying zero depreciation bike insurance:
• No deductions for depreciation
You will receive the entire claim amount. The insurer will not deduct the depreciating value of the bike or its parts.
• Coverage for plastic and fibre parts
Usually, regular bike insurance policies do not cover the cost of the vehicle’s plastic and fibre parts. Zero depreciation insurance covers the entire repair or replacement expenses, including these parts.
• Saves your money
As the depreciating value gets covered, you do not have to pay any amount against the repair or replacement cost.
Difference between bike insurance with zero depreciation cover and without zero depreciation cover
Bike insurance with zero depreciation cover | Bike insurance without zero depreciation cover |
The insurer will settle the entire claim amount without any deductions. | The insurer will settle the claim but will deduct the depreciating value of the bike or its parts. |
The premium is high. | The premium is low. |
The age of the bike does not make any impact. | The policy premium and the bike’s value depend on the vehicle’s age. |
Inclusions of zero depreciation bike insurance
Here are some of the common inclusions of zero dep insurance for bike:
• Compensation for depreciable parts
Zero depreciation insurance compensates for the repairing or replacing costs of depreciable parts. These include nylon, rubber, fibreglass, and plastic parts.
• Cost of replacement and repair
Covers the entire cost of repairing or replacing the damaged parts of your bike.
• Availed at purchase and renewal
You can buy a zero depreciation cover when purchasing or renewing your bike insurance policy.
Exclusions of zero depreciation bike insurance
Here are some of the common exclusions of zero depreciation bike insurance:
• Mechanical faults
It does not cover any damage caused to the bike due to mechanical faults or failure.
• Ageing and wear and tear
It does not cover the routine ageing and wear and tear of the bike's parts.
• Total loss
It does not cover any total loss or theft of the bike.
