Common Misconceptions About Zero Depreciation in Two Wheeler Insurance

Zero Depreciation is an add-on cover that can be purchased along with comprehensive two wheeler insurance or standalone own damage two-wheeler insurance. Let’s read all about it and discover some of the facts behind its common misconceptions.

What is Zero Depreciation Cover?

Over time, the value of your two wheeler would depreciate with usage and time. Therefore, at the time of bike insurance claims, you would be compensated for the depreciated value only. With zero depreciation add-on cover, you would be protected from this loss and not have to pay the difference of depreciation out of your own pocket. You would be compensated for the total amount of loss rather than the depreciated value. Therefore it is an extremely useful add-on cover to purchase.

Common Myths Associated with Zero Depreciation

The following are some of the common misconceptions regarding zero depreciation in two wheeler insurance. Let’s read all about the facts behind these myths.

1. Myth: Zero Depreciation is Only Available for Cars
Fact: Zero Depreciation cover is available for bikes as well as cars.

2. Myth: Multiple Claims Can be Made if You Have Zero Depreciation Cover
Fact: With the Zero Depreciation cover, most insurance companies will limit the amount of times you can file a motor insurance claim during your policy period. Most commonly, this would be limited to twice in the policy period. The reason for this is that insurance companies would take on a higher risk when you take up the zero depreciation cover and they would want to limit their liabilities.

3. Myth: All Wear and Tear is Covered Under Zero Depreciation
Fact: Most general wear and tear damages would be excluded under zero depreciation cover. Some of the common exclusions are as follows:

• Damage from mechanical slip-up
• General wear and tear
• Damaged caused to uninsured items such as tyres or gas kits
• Total loss of the vehicle
• Engine damage due to water ingression or oil leakage

4. Myth: You Would Be Exempt from Paying the Compulsory Deductible
Fact: Compulsory deductible refers to a percentage of the claim amount that you would have to pay as the policyholder. This would still be applicable to you even with Zero Depreciation Cover.

Also Read

15 Essential Parts of Your Two Wheeler And Their Maintenance Tips

5 Tips To Take Care of Motorcycle Tyres

Takeaway

One of the most common and widely recommended add-ons, it is advisable to purchase it for your two wheeler in order to shelter yourself from high costs at the time of raising your claim, as otherwise you would have to pay the depreciation amount yourself. However, it is important to have all the facts before you purchase it. You are now equipped with important knowledge regarding zero depreciation cover.

Disclaimer: 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.