What is zero depreciation bike insurance? Is it beneficial? Should I take it?

If you are also wondering about these questions then you are reading the right article! In this article, I will tell you everything that you need to know about nil depreciation motorcycle insurance. From what is it and how it works to what it covers and what it does not cover, you will find answers to all questions here.

So let’s get started!

What Is Zero Depreciation Bike Insurance?

Zero depreciation bike insurance is a type of motorcycle insurance that also pays for the depreciation of your motorcycle parts while taking the claim.

Still confused? Let us first understand the meaning of the depreciation.

Depreciation simply means a decrease in the value of anything. In this case, it is the decrease in the value of a bike.

For eg. Will you buy a 1 year old bike at its original cost? No, right? Because in this 1 year, its value has decreased. And now you will buy it at a lower cost. So this decrease in the value of the motorcycle is known as depreciation.

Now suppose, you bought a brand-new bike a year ago and you also got it insured. Unfortunately, you met with an accident recently and it got damaged. Now since your bike is 1 year old, do you think it will be fair to ask the insurance company to pay for the full amount for parts?
No, right? Because as discussed earlier, the value of the bike gets depreciated every year.

Therefore the insurance company will not pay you the full amount for the parts. It will only pay the amount after depreciating the value of the parts. And you will have to pay the remaining amount from your pocket.

If there are multiple parts that need replacement then the cost that you will have to bear can be very high. And this is where the zero depreciation bike insurance comes into place. By taking the nil depreciation add-on with your motorcycle insurance, you will not have to pay for the depreciation amount of bike parts.

I am sure you now know what is zero dep bike insurance. Now let’s understand how it works.

How Does Nil Depreciation Two Wheeler Insurance Works?

The first thing that you need to note is that the zero-dep bike insurance is a kind of add-on. So you can take it additional on your own damage policy.

However, if you are only taking the third-party motorcycle insurance then you will not be able to take the nill depreciation add-on.

Therefore while taking the two-wheeler insurance, you will have to take the own damage cover as well. And then select the zero depreciation add on. After that, you have to pay the required premium.

Another thing that you need to note is that you can only take the nil depreciation bike insurance for the first 5 years. Once your motorcycle is 5 years old then you can’t take the zero dep insurance for it.

Now, if your bike gets damaged then you can file for a claim. And the insurance company will pay for the total cost of the replacement of the parts. You will not have to bear the depreciation cost.

However, not everything is covered by the zero dep bike insurance, and you may have to pay for some parts.

So let me now tell you what is covered and what is not covered in zero depreciation bike insurance.

What Is Covered In Zero Depreciation Bike Insurance?

Zero depreciation bike insurance coverage varies from company to company. It generally covers the depreciation of all parts that are made up of rubber, nylon, fiberglass, plastic, metal, etc.

The nill depreciation add-on covers almost all the parts of a motorcycle. It not only covers their cost but also covers the cost of their replacement or repair.

So be it your bike’s headlight, fender, fuel tank cover, seat, handle, etc it covers them all.

What Is Not Covered By Zero Depreciation Bike Insurance?

Running parts and lubricants like engine oil, brake oil, etc are not covered in the zero depreciation bike insurance. Also depending on the insurance company, you may also have to pay for tires and tubes.

Also, zero dep bike insurance does not cover the following things:

• Regular wear and tear of the bike parts. For eg. you can not claim for the chain sprocket of your bike in case it is worn out.
• Mechanical breakdowns. If your bike mechanically breaks down or its parts break without an accident then also you cannot claim the insurance.

Benefits Of Zero Dep Two Wheeler Insurance

The major benefits of zero-depreciation bike insurance are:
1. Low cost of repairing the bike after a crash
2. Full peace of mind

The first benefit of nil depreciation two wheeler insurance is the lower cost of repairing the bike.

Cost of repairing the bike after an accident can be really high. However, if you have taken the zero dep motorcycle insurance then you will not have to shell out much money to get it repaired.

The second advantage of taking zero dep insurance is the peace of mind. And this is probably the biggest benefit.

If you have taken it then you can ride your bike freely without worrying about the cost of repairing if you crash. Believe me, constantly worrying about it can ruin your riding experience. Especially if you own a costly bike.

Should You Take Nil Depreciation Bike Insurance?

The answer to this question is a yes and a no. Whether you should take zero dep bike insurance or not totally depends on you.

However, I can help you decide this.

Let us first look at the depreciation table and see how much will you have to pay if you don’t take zero dep insurance.

In case, your bike gets damaged in an accident after completing 3 years then you will have to pay the 25% of the cost of parts. Considering you have not taken the nil depreciation cover.

For Eg. Suppose the cost of repairing your bike comes out to be ₹25,000. In this case, you will have to pay ₹6,250 from your pocket if you haven’t taken the zero depreciation bike insurance. However, this cost will be zero if you take the zero dep add-on.

This is just an example, the cost of repairing the bike could be way higher or it could be way low. So, it depends totally on you whether you can cover this cost yourself or not. If you can then you should not take the zero depreciation add-on.

However, if you can’t bear this extra expense then you should definitely buy nil-depreciation motorcycle insurance. Because it does not actually cost much.

You Might Also Be Interested In:

• Is KTM RC 200 A Good Bike?
• Should I Finance A Motorcycle?
• How To Increase Mileage Of Bike?
• Top Bikes Under 1.3 Lakhs

FAQs

Is Zero Depreciation Good Or Bad?

Zero depreciation bike insurance can be really good if you have an expensive motorcycle.

Can We Get Zero Depreciation Insurance Beyond 5 Years Of Bike?

No, you cannot take zero dep add ons for bikes that are older than 5 years.

Is Zero Depreciation Bumper To Bumper?

Yes, bumper to bumper and zero depreciation are basically the same.

Does Own Damage Cover Zero Depreciation?

No, own damage bike insurance does not cover zero depreciation. You have to take an add on of zero dep over your own damage policy.