Zero Depreciation Cover for Bikes in 2025: Worth It or Not?

Zero depreciation, or “zero dep,” is an add-on that ensures your insurer doesn’t factor in depreciation when settling claims.

Zero Depreciation Cover for Bikes in 2025: Worth It or Not?

Bike Insurance

Zero depreciation cover makes your insurance stronger by paying the full cost for damaged bike parts, with no depreciation cuts. It’s not part of third-party plans, so go for a comprehensive policy. That way, you won’t face surprise deductions when it’s time to repair or replace anything after an accident.

Introduction

Every biker knows the thrill of the open road, but few think about what happens when things go wrong. That’s where bike insurance steps in. It's more than just a legal requirement-it’s peace of mind when accidents or damages occur.

Understanding Zero Depreciation Cover

Imagine buying a shiny new bike and meeting with a minor accident months later. You file a claim, but then discover that your insurer has deducted money based on the bike’s depreciated parts. That’s where zero depreciation cover becomes a saviour.

Zero depreciation, or “zero dep,” is an add-on that ensures your insurer doesn’t factor in depreciation when settling claims. It means if the covered parts get damaged, you get the full amount for repair or replacement-no deductions.

You must know that a zero depreciation add-on is not available with third-party bike insurance, you can get it only with a comprehensive policy.

What’s Covered and What’s Not?

Let’s see the scope of coverage of the zero depreciation add-on.

Inclusions:

Parts like rubber, plastic, fibre-glass, and nylon
Full repair costs for covered claims
Available for bikes up to 5 years old
Renewed along with existing insurance
New bikes are also eligible

Exclusions:

General wear and tear
Engine damage from oil leaks
Tyres, bi-fuel kits, or gas kits
Total loss of bike (if IDV isn’t enough)
Mechanical breakdowns not linked to accidents

Knowing what’s covered helps avoid surprises during claims.

Depreciation Rates as per IRDAI (Insurance Regulatory and Development Authority of India)

Like every other machine, your two-wheeler ages. The wear and tear from daily use, weather conditions, and mileage gradually reduce its value. This is known as depreciation. It directly impacts the claim amount you receive if your bike gets damaged.

Here’s a snapshot of the depreciation rates used to calculate the Insured Declared Value (IDV) of a vehicle for insurance purposes.

Age of Vehicle	Depreciation Rate
Up to 6 months	5%
6 months – 1 year	15%
1 – 2 years	20%
2 – 3 years	30%
3 – 4 years	40%
4 – 5 years	50%
Over 5 years	Mutually decided between insurer & owner

Components like rubber parts, tyres, plastic, and batteries can depreciate by as much as 50%. With regular insurance, these depreciated values are deducted from your claim. However, with zero dep cover, they’re not.

Benefits of Zero Depreciation Cover

Zero depreciation bike insurance helps you save money on bike repairs by covering the full cost of damaged parts without deducting for wear and tear.

1. Full Settlement: You get 100% cost of parts replaced, with no depreciation cuts.

2.Less Financial Stress: Especially during big repairs or accidents.

3.Peace of Mind: Helps you ride worry-free, knowing damage won’t hit your pocket hard.

4. Increased Policy Value: Your insurance becomes more useful and complete.

5. Ideal for New Bikes: Keeps your investment protected for the first few years.

6. Better Resale Value: Well-maintained bikes fetch better prices later.

7. Frequent Riders Benefit More: Saves money over repeated repairs.

8. Protects Expensive Parts: Like fibre covers, plastic tanks, mirrors, and lights.

9. Great for Urban Commuters: Since minor accidents and scratches are common in city traffic.

When Should You Consider Zero Depreciation Rider?

This cover is especially valuable during the early years of your bike’s life. If you’ve just bought a new vehicle or own a premium model, the cost of repairs and part replacements is significantly high. Zero depreciation helps cover that fully.

It’s also a great option for:

High-end bikes with expensive parts
Individuals residing in areas with high accident rates or poor road conditions
New riders who may be more prone to mishaps
People who use their bikes daily or for long commutes

How Does Zero Depreciation Add-on Affect Your Premium?

Opting for zero depreciation means your insurance premium will rise. Why? Because the insurer takes on a higher risk of payout without subtracting depreciation. However, many find the extra cost worthwhile given the savings during a claim.

For example, a regular repair for plastic parts may cost ₹7,000. With regular insurance, you may only get ₹3,500–₹4,000. However, with zero dep, you could get the full amount. Over multiple claims, the savings quickly outweigh the extra premium.

Comparing Standard and Zero Depreciation Insurance

Let’s break down the key differences:

Feature	Standard Policy	Zero Depreciation Policy
Depreciation Applied	Yes	No
Premium Cost	Lower	Slightly Higher
Claim Amount	Reduced due to depreciation	Higher, full claim paid
Ideal For	Older bikes	New/premium bikes
Out-of-Pocket Repairs	More	Less
Coverage	Basic	Extensive

Factors to Consider Before Choosing Zero Depreciation Cover

Not all riders may benefit equally from zero depreciation add-on. Here are things to consider:

Age of Bike: Usually allowed for bikes up to 3–5 years old. Older bikes may not qualify.
Policy Terms: Check the insurer’s conditions. Some allow only 2 zero-dep claims per year.
Usage Frequency: Daily riders or long-distance commuters benefit more than occasional riders.
Repair Costs in Your Area: Higher local repair costs make zero dep more valuable.
Condition of Bike: Well-maintained bikes get better value from the cover.
Type of Bike: Sports bikes and imported models often have costly parts-ideal for this cover.
Premium Affordability: Balance the higher premium with potential savings.

By weighing these factors, you can decide whether zero dep is a smart add-on for your situation.

Conclusion

Zero depreciation cover for bikes is worth it, especially for new or expensive two-wheelers, as it ensures you receive the full claim amount without any depreciation deductions. It significantly reduces your out-of-pocket expenses during repairs. It’s not part of third-party bike insurance, so go for a comprehensive policy. That way, you won’t face surprise deductions when it’s time to repair or replace anything after an accident.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.