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What Is Zero Depreciation in Bike Insurance?

Published On Jun 09, 2022

What Is Zero Depreciation in Bike Insurance?

A bike’s value starts depreciating right after it moves out of the showroom. The insurers secure your vehicle based on its current market value. However, you can purchase a zero depreciation cover along with your comprehensive bike insurance to get full protection, irrespective of the reducing value of your vehicle. Read the article below to know various aspects of zero depreciation bike insurance. 

What Is Zero Depreciation in Bike Insurance?

What is a Zero Depreciation Cover? 

Zero depreciation cover, popularly known as bumper to bumper cover, is a type of bike insurance that excludes the depreciation component from the insurance coverage, allowing you to have maximum protection. It means that if your vehicle is damaged as a result of an accident, no depreciation is deducted from the coverage for wear and tear on any element of the bike, except tyres, batteries and consumable parts. The insurance provider will cover the complete cost of replacing the body component. 

Who Should Purchase a Zero Depreciation Car Insurance? 

Since zero depreciation cover offers complete protection, its premium is higher in comparison to other bike insurance add on. Hence, it is beneficial for individuals with new or expensive bikes. Zero depreciation bike insurance can be beneficial to - 

● Individuals with new or luxury bikes 
● Inexperienced or new drivers 
● Cars with costly spare parts 
● Car owners living in an accident-prone area 
● Owners concerned about minor dents and scratches 

Benefits of Zero Depreciation Car Insurance 

Here are a few benefits of zero depreciation bike insurance. 

● A zero depreciation cover protects the bike owners from the financial burden of repair and replacement of damaged bike parts due to accidents 

● Strengthen your basic plan and brings your repair expenses to almost negligible

● Secures your vehicle without considering the depreciating market value of the bike.

Factors to Consider While Purchasing a Zero Depreciation Car Insurance 

Here are some considerations to make while buying zero depreciation bike insurance:

● To be qualified for zero depreciation auto insurance add-on coverage, they must not be older than 5 years. 
● On basic zero depreciation auto insurance plans, only the depreciated value of the bike parts is replaced. 
● Because zero depreciation vehicle insurance provides more coverage than a normal auto insurance plan, it has a higher price. 
● The zero depreciation auto insurance add-on is especially advised for luxury bike owners or those who live in high-risk areas. 
● Claims on auto insurance can be filed in particular limited circumstances to reduce the number of claims for small concerns such as dents in the vehicle. 
● Depreciation on bike batteries and parts made of plastic, rubber, or nylon is deductible to the tune of 50%, and depreciation on other elements of the vehicle is deductible to the tune of 30%. 
● The age of the bike determines the amount of depreciation deductible for wooden bike parts. Depreciation is usually calculated at 5% in the first year, 10% in the second year, and so on. 


Zero depreciation cover secures your vehicle without considering the depreciating market value of your bike. You can purchase it as an add-on in addition to your basic bike protection plan with a nominal increase in the premium. It is important to note that zero depreciation cover is available for vehicles not older than 5 years.

Also read: What Are The Differences Between A Multi-Year And A One-Year Bike insurance Policy?

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This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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