By Veronika If you have decided to insure your bike using a comprehensive policy, congratulations! You have taken a step in the right direction in safeguarding your bike. Without purchasing an insurance policy, you cannot be a hundred percent sure of not having to incur expenses for repairs or damages. However safe you ride, there are other vehicles that cannot be guaranteed to be driven with the same level of safety. This where a bike insurance policy comes into picture to save you from burning a hole in your pocket. Moreover a comprehensive policy benefits by providing coverage for own damage apart from the basic policy cover for third-party liabilities only.
Although not all damages are covered by a comprehensive bike insurance plan, one such exception is depreciation on your bike. At the time of the claim, the insurance company deducts the depreciation of your vehicle to settle the claim amount. While it is a standard practice to account for depreciation, it substantially reduces the claim amount. However, you can avoid this reduction of claim amount by purchasing a zero depreciation add-on.
What is a zero depreciation add-on?
Zero depreciation add-on is an optional coverage available for comprehensive two-wheeler insurance plans. With this additional coverage, you can be sure that you receive the entire amount of spares that are required in the repair of your bike. Although that doesn’t imply you shall receive the entire cost of repairs. You will still be required to pay the mandatory deductible as per the terms of the policy.
Why is it important to purchase a zero depreciation add-on?
Depreciation is the phenomenon that all motor vehicles are subject to and it reduces their value over time. At the time of repairs, the insurers deduct this depreciation from its payout. Some insurers offer zero depreciation included in its standard comprehensive policy. On opting for this additional cover, you can be rest assured that the entire amount of spares required for replacement shall be paid by the insurer.
Benefits of zero depreciation cover vis-a-vis its cost
This depreciation waiver by using a zero depreciation add-on benefits by reducing the out-of-pocket expenses to a minimum, if not entirely zero. The savings in payment at the time of claim make up for the cost of additional coverage. Moreover, these add-on covers do not require you to shell out a lot of money, but are highly affordable. Just for a fraction of your premium amount, you can opt for this additional coverage and avail maximum payout at the time of settlement. If you don’t have one at present, buying one at the time of two wheeler insurance renewal will definitely benefit in the long run.
Apart from zero depreciation add-on, there are quite a few add-ons that can be added to your policy coverage. This will help to enhance the bike insurance coverage significantly. If budget is something that you are worried about, using a two wheeler insurance premium calculator can help you consider the right set of add-ons to combine with the zero depreciation cover. To conclude, do not miss buying a zero-depreciation add-on with your comprehensive plan as it significantly enhance the scope of the policy for a marginal increase in premium.
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