Zero depreciation bike insurance

Know more about zero depreciation bike insurance and how it is beneficial.
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Zero depreciation bike insurance
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3 mins
15-June-2023

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.

Who should buy a zero dep bike insurance?

The zero depreciation add-on cover can benefit in the following ways:

  • If you have a bike, which is less than five years old, it is advisable to buy the zero depreciation cover.
  • If you ride on an accident-prone road frequently, you can consider buying this add-on cover.
  • If you have bought a new two-wheeler, a zero depreciation cover is a good investment.
  • If you have bought a high-end bike, this add-on cover will ensure you get complete coverage against any damages.
Having a zero depreciation bike insurance can be beneficial especially if your bike is new and has a higher market value. You can enjoy comprehensive coverage without worrying about the depreciation value of your bike's parts. Buy two-wheeler insurance with zero depreciation cover from Bajaj Finance Insurance Mall. It offers a 100% digital buy process.

Frequently asked questions

Is zero depreciation bike insurance worth it?

Yes, buying a zero dep insurance for bike is beneficial. You get the entire claim amount without any deduction of the depreciation value. If you have bike insurance without a zero depreciation cover, your insurer will pay the claim amount deducting the depreciation value of the bike.

How does zero depreciation insurance for bike works?

Usually, insurers deduct the depreciating value of the vehicle from the claim amount and settle the claim. You might have to pay for any repair or replacement required for the depreciable parts. With a zero dep insurance for bike, you can get coverage for the depreciable parts of your bike. Your insurer will not deduct any depreciating value from the claim amount for repairing or replacing the damaged parts.

What does zero depreciation bike insurance not cover?

Zero depreciation bike insurance does not cover the regular wear and tear of the vehicle. It also excludes third-party coverage and damages caused due to mechanical faults.

What is the difference between zero depreciation and comprehensive bike insurance?

A comprehensive bike insurance policy covers damages caused to the own vehicle and third party. Mostly, regular bike insurance does not offer zero depreciation cover. However, with the changing times and needs of customers, comprehensive bike insurance now offers zero depreciation cover as an add-on. You can also get zero depreciation insurance as a standalone cover. You can buy the zero dep insurance for bike as an add-on cover to comprehensive two-wheeler insurance.

Can I buy zero depreciation bike insurance for an old bike?

Buying a zero depreciation bike insurance for a new bike can be beneficial. You can also buy the zero depreciation cover for a second-hand bike less than five years old. Check the clause for buying zero depreciation insurance for bike with the insurer. The terms and conditions may differ from insurer to insurer.

How can I compare zero depreciation bike insurance plans online?

You can check the details of zero depreciation insurance on the preferred insurance company’s website. Check the coverage offered and premium of the zero depreciation insurance plan to choose the right plan.

Can I claim the zero dep bike insurance if my bike gets stolen?

No, you cannot raise a claim for zero depreciation bike insurance if your bike gets stolen. The insurer will pay the coverage amount as per the chosen comprehensive bike insurance after deducting the depreciation cost.

Is it good to have a zero depreciation bike insurance?

Yes, it is highly advisable to take zero depreciation bike insurance. This is because in case of damages or accidents, you will get full coverage of repairs or replacement cost without considering the depreciated value.

Can I get a zero depreciation insurance for two-wheelers over 5 years old?

Yes, you can get zero depreciation insurance for two-wheelers over 5 years old. However, insurance comes at a higher premium since the depreciation rate for older vehicles is higher.

What is the depreciation rate for bike insurance?

The depreciation rate for bike insurance varies depending on the age of the vehicle. For new bikes, the depreciation rate is around 5%, while for bikes between 2 and 5 years old, the depreciation rate increases to around 15-50%. For bikes over 5 years old, the rate can go higher than 50% or as decided by the insurer based on the IDV. This is why, it is important to have zero depreciation bike insurance, especially for older bikes.

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