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Bike Insurance Zero Depreciation Cover - Everything You Need To Know

By Vikas Chandra Das
02 August 2022, 5:11 PM

Bike insurance does not cover everything, one of which is the depreciation cost of your vehicle. But buying a zero depreciation cover will help cover the same and give you value for the extra premium you pay in return. But what exactly does bike insurance zero depreciation cover mean? And how can it help you? Find out everything you need about bike insurance zero depreciation cover below.

What is Zero Depreciation Insurance Cover for Bikes in India?

Zero depreciation is an additional coverage offered along with comprehensive and standalone own damage two-wheeler insurance policies. Depreciation affects the value of an asset over time due to wear and tear. With a zero depreciation add-on, the insurer does not deduct depreciation of your two-wheeler when settling a bike insurance claim.

Zero dep insurance for bikes is an add-on insurance cover that can be bought while purchasing or renewing your two-wheeler insurance policy. It offers complete coverage for all bike parts without any depreciation deduction. So, if you have this cover and your bike meets with an accident, the insurer will pay the entire claim amount. The cost of this premium varies from one company to another.

Key Benefits of Zero Depreciation Cover in Bike Insurance 

Zero depreciation cover in bike insurance insulates you from the rising depreciation rates. It will result in a full claim disbursal and make you feel good. Let's check some of the benefits of this cover.

1. Repair Cost Without Depreciated Value

 If you take your bike to an authorized service centre to get it repaired after an accident,  the insurer will not deduct depreciation when settling your bike repair costs. But if there is no zero dep insurance for a bike in place on your policy, this deduction would apply.

2. Higher Claim Amount

A bike's different parts have different depreciation rates. The depreciation rate is also based on the age of the two-wheeler, affecting the claim rates. With a zero depreciation two-wheeler insurance policy, your insurer will not deduct any value from the claim amount for depreciation.

3. Enhances Coverage

It's helpful to understand that without a zero depreciation cover, an insurer will deduct depreciation from your bike's insurance claim amount. The rate of depreciation can be as steep as 50%. When you have such a cover, your policy covers 100% of your two-wheeler's repair cost without accounting for any depreciation value, except for damage to batteries, tubes, etc. Here, the coverage would be limited to 50%.

4. Save More Money

One thing to remember about zero depreciation cover is that it helps you save more. With traditional policies, where the bike depreciates at 40%, your annual premium would go up because the annual percentage charged for taking care of damages increases. With a policy with no depreciation cover, your coverage costs increase too. Not only does your annual premium go up, but so does the payout limit on accidents involving your bike.

5. Peace of Mind

Another benefit of having zero dep insurance for bikes is that you don't need to worry about how much money goes towards repairing your bike or what happens to it over time. And when you know that you're covered for anything that might happen while owning and riding your vehicle, you can enjoy driving with peace of mind!

Inclusions in Zero Depreciation Cover

A two-wheeler insurance policy with zero depreciation cover includes the following:

  • It includes repair and compensation for a two-wheeler's rubber, fibreglass, plastic, and nylon parts.
  • Depending on the insurer, a bike insurance plan with zero depreciation can vary in its total number of allowable claims.
  • Repairs and replacements of the two-wheeler's parts are compensated during claim settlement.
  • During purchase and renewal, you can add zero depreciation to your policy.

Exclusions in Zero Depreciation Cover

  • Routine damage incurred on an insured vehicle.
  • Mechanical breakdown.
  • For losses or damages to non-insurable items like tyres, fuel kits, and spare parts.
  • The policy provides no depreciation on a bike over a year, but the plan should be renewed annually to be still entitled to the cover. This add-on coverage is purchased at the time of vehicle registration or during the renewal process.

What is the Cost of a Zero Depreciation Cover and What Makes it Worth the Price?

A zero depreciation cover for your bike insurance policy is an add-on cover that ensures you get the total value of your bike in case it is damaged in an accident. The cost of a zero depreciation cover depends on the make and model of your bike, as well as the insurer you choose. However, it is generally worth the price as it gives you peace of mind in knowing that you will be compensated for the full value of your bike if it is damaged.

You'll likely spend about 15% of your bike insurance premium on a zero depreciation add-on cover. At first, it may seem an excessive price for a bike insurance add-on cover, but this will be worth the investment as zero depreciation add-on cover will reimburse you at a higher level than its policy premium.

Read more - How do Add-on Covers in Bike Insurance Help You?

Things to Keep in Mind About the Zero Depreciation Add-on Cover

If you are looking to purchase a zero dep insurance add-on cover for a bike, there are a few things you need to know.

  • Zero depreciation cover is an add-on cover you can purchase with a comprehensive bike insurance policy or standalone own damage policy.
  • This cover protects your bike against depreciation due to wear and tear.
  • The premium for this cover is slightly higher than a standard insurance policy.
  • The compulsory deductibles are not deducted under the zero depreciation policy.
  • You can claim compensation under zero depreciation up to two times a year.

The Bottom Line

If you're looking for the best possible bike coverage, you need to get zero depreciation cover. This type of coverage will protect your bike against any depreciation due to wear and tear, meaning that you'll be able to get replacement value if something happens to it. Plus, it's easy to add to your existing bike insurance policy, so there's no reason not to get it. So don't wait – get zero depreciation cover from Paytm Insurance today! 

Read more - Which is Better: Comprehensive or Zero Dep Two Wheeler Insurance Policy


1. How to buy zero depreciation bike insurance cover?

Nowadays, policyholders can easily purchase zero depreciation coverage online when buying or renewing their bike insurance. As a bike owner, you can conveniently add the zero depreciation option while purchasing the comprehensive or standalone own damage bike insurance plan. 

2. How many times can you claim zero depreciation?

You can file zero depreciation twice during the whole tenure of your insurance with the company.

3. What's the difference between zero depreciation and bumper to bumper?

Zero depreciation cover is the same as bumper to bumper- these are two names for the same thing. 

4. How is zero depreciation calculated?

While calculating the zero depreciation, the insurance company pays you the claim amount without subtracting the amount for depreciation. 

5. Can I buy zero depreciation on my old bike?

Zero depreciation can be applied to your old bike, but it has to be under five years old. 


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