Do you plan to buy a bike insurance policy in near future? If you happen to do some online research, there is a term that you will come across frequently, zero depreciation cover. Zero depreciation cover or zero dep cover is one of the most popular riders of a bike insurance policy, and there are good enough reasons for the same.
What is a Zero Depreciation Cover?
If we were to breakdown the above phrase, there are three simple parts namely zero, depreciation and cover. Depreciation is a factor that comes into the picture as soon as you take the delivery of your bike. It means, that over a period of time the value of your bike depreciates. It is mostly due to the normal wear and tear of the bike and its parts. And Zero in the phrase refers to complete removal of depreciation from the equation.
A zero depreciation cover then offers coverage for your bike after removing any sort of depreciation charged from the calculations. A standard insurance cover offers partial coverage for different body parts such as plastics, fiberglass, rubber etc. Whereas a zero-depreciation cover offers complete coverage for these parts.
Benefits of Zero Depreciation Cover
– Leaves Depreciation Out
One of the biggest advantages that you can avail on buying a zero dep cover for your bike is the total removal of depreciation. Any expenses that are related to the repairs of your bike are exempt from depreciation value. Whether you opt for cashless claims or reimburse the amount at a later date, the case remains the same.
– Better Coverage
While a comprehensive plan offers much better coverage than a third-party liability policy, you can still improve its coverage. With a zero dep add-on with your comprehensive bike insurance, you stand to receive much better coverage. The presence of zero dep cover can lead to a higher claim value as compared to a basic comprehensive plan.
– Better Value for Money
The money that you invest in a zero dep cover ensures that you receive much better value for your money at the time of claim.
Without Zero Depreciation Cover
When you buy a two wheeler insurance online, you have the option of adding a zero dep cover to the plan. But what will you miss if you do not opt for a zero dep cover? Well, here are some of the depreciation numbers for your bike as well as different parts. You can then decide for yourself if you need to opt for zero dep while buying two wheeler insurance online or not.
|Bike Components||Depreciation Percentage|
|Fiber material or Fiberglass||30|
|Tyres/Nylon/Rubber, batteries, tubes, plastic parts||50|
Other components of the bike that do not fall into the above category are liable to the following depreciation costs.
|Age of Vehicle||Depreciation Percentage|
|0 – 6 months||N/A|
|6 months – 1 year||5|
|1 year – 2 years||10|
|2 years – 3 years||15|
|3 years – 4 years||25|
|4 years – 5 years||35|
|5 years – 10 years||40|
|10 years and above||50|
The above numbers mean that you will have to pay for the remaining cost of the various components from your pockets if you were to make any claims. During your next two wheeler insurance renewal online, do not forget to add a zero dep cover.
When you add the zero dep cover to your two wheeler insurance online, it is available for bikes up to the age of 2 years and you can claim the policy 2 times at the maximum. While the exact terms and conditions might vary from insurer to insurer, these are the standard features.
Adding a zero dep cover to your two-wheeler insurance renewal online will ensure complete peace of mind.