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Zero Depreciation Bike Insurance – Benefits, Inclusions and Exclusions

Depreciation is the decrease in the worth of an asset over a certain period of time, which is caused mainly due to wear and tear of the vehicle.  Zero Depreciation bike insurance is an add-on cover which allows the policyholder to settle bike insurance claims without considering the depreciation of his/her bike.

Hence, under the zero dep. bike insurance, the insured can receive an enhanced claim amount as they can save on the depreciation cost of the vehicle. So, if you are planning to buy an add-on cover with your bike insurance online, go for the zero dep. add-on cover. This add-on guarantees an enhanced claim of your bike insurance. Let us learn more about the benefits as well as the inclusions and exclusions of the zero depreciation bike insurance.

Benefits of Zero Depreciation Bike Insurance

Here are some benefits of zero dep. insurance cover:

  • A zero depreciation add-on cover serves as an added protection to take care of the financial crises that arise because of a mishap on the road that involves your bike.
  • With zero depreciation add-on cover you get compensated for the damages caused to your bike without considering the depreciated value of your vehicle. Thus, the amount of compensation received is enhanced in this case.
  • Zero dep. add-on cover limits any extra charges that are normally paid by the insured as depreciation charges while raising bike insurance claims.
  • If you have an add-on coverage of zero depreciation, your insurance company will settle your claim without considering the depreciation in your account.
  • You may be paying an added premium by including a zero depreciation add-on to your bike insurance coverage. However, the compensation you receive at the time of claim settlement is greater in this case.
  • Also, if you have a policy that allows unlimited zero dep. claims, you can save enough money each time you make a claim for your bike.
  • Further, if you buy bike insurance online, you can avail added benefits in terms of offers and discounts.
  • On top of everything else, the mental peace allowed by zero depreciation add-on cover is another very crucial aspect of having a zero dep. add-on cover.

Inclusions of Zero Depreciation add-on Cover

Here are the things included in a bike insurance policy with zero depreciation add-on cover:

  • It allows the insured to get reimbursed for bike parts made of rubber, fiberglass, plastic and nylon.
  • You may use the zero dep. cover twice in most cases, while there are some insurers who allow unlimited usage of the add-on cover.
  • You can avail the zero dep. cover only during claim settlement.
  • You can buy a zero depreciation add-on cover either during purchase or during renewal.

Exclusions of Zero Depreciation Cover

Below are the things not allowed under zero depreciation add-on cover:

  • Damage caused to uninsured parts.
  • Regular bike deteriorations.
  • Damage caused due to mechanical breakdown.
  • Damage to parts that are not insured such as tyres, tube, gas kit etc.
  • You need to renew a zero dep. add-on every year.

Things to remember while buying Zero Depreciation Add-on Cover:

  • This cover is available for new bikes that are not beyond two years old. Thus, you cannot have this cover for older bikes.
  • This add-on does not remove the obligatory deductibles.
  • Most insurers allow insured individuals to avail this cover only twice a year. So, you cannot avail it a third time.
  • Zero depreciation cover is similar to bumper-to-bumper cover.

To Conclude

A zero depreciation add-on is an expensive coverage that will raise the premium of your bike insurance to a certain extent. But irrespective of the cost, this add-on is worth buying as the amount of compensation is much greater. Further, the claim amount paid by people who do not have this add-on cover is higher in most cases. However, by buying the coverage from renowned insurance brokers like Paybima would allow you to gain maximum benefits.

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