Whenever you purchase a new and expensive bike, you make sure to protect it from extreme damages. We cannot predict damages or accidents. Whether you are an experienced driver or a fresher one, it will not change the circumstances of the accident. So, it is better to be on the safer side and choose additional coverage. In that case, a zero depreciation cover is worth an investment for the protection of your bike. The insurance company will pay the complete cost of the bike without considering depreciation. So, purchasing a zero depreciation two-wheeler insurance is very helpful for every bike owner.
A comprehensive bike insurance policy is always there to provide coverage but it considers the depreciation amount. Depreciation reduces the actual amount of the vehicle hence the insurance company ended up paying the recent market price of the bike.
Benefits of Zero Depreciation cover:
Opting a zero depreciation policy is always beneficial. Here are some major benefits of opting a Zero Depreciation cover.
- It will increase the savings and reduce the risk at the time of claims. Bike owners don’t have to pay much from their pockets at the time of making a claim.
- The car owner will receive the complete amount including depreciation amount and after deducting some required amount in the policy.
- Generally, the depreciation rate of two-wheelers varies from 0% to 40%. But with a zero depreciation plan customers don’t have to pay for the expenses of paintwork, rubber, and fiberglass parts at the time of service.
- Customers have to pay 0% charges for the repair and replacement of spare parts whereas you have to pay 50%. charges for tubes, tires, & batteries.
- If you own an expensive bike then it is also obvious that their spare parts are also expensive. So, people with expensive bikes majorly own this coverage while renewing bike insurance online.
- Opting for a zero depreciation cover while purchasing two-wheeler insurance for your new bike will give your peace of mind. As you don’t have to take any financial stress in repairing the damage.
- It widens the coverage of your bike in extreme damage conditions.
What is Zero Depreciation Cover?
Zero depreciation cover is an add on provided in two-wheeler insurance policies. It provides additional benefits to the cost of bikes by neglecting depreciation costs. It is obvious that the vehicle price will depreciate with passing time due to wear and tear. So, opting for a zero depreciation cover along with the basic plan is a wise decision. You have to choose this as add on while purchasing the bike insurance online. Most of the insurance companies provide this coverage option for new bikes of less than two years. The premium price will increase on opting zero depreciation for which you will receive a high claiming amount. Customers can opt for this cover both while purchasing or renewing Online Bike insurance.
Scenarios excluded under Zero Depreciation Cover:
- If the bike damages due to mechanical defects then it will not be covered in the policy.
- Parts that are not mentioned in the policy will be covered in a zero depreciation policy.
- If the bike damages due to natural hazards then it will not be covered under the policy.
- Damages caused due to mechanical wear and tear are not included in the policy.
- It is important to go through the policy documents carefully as zero depreciation covers are only applicable for selected models.