Everything You Need to Know About Zero Depreciation Rider

When you bring home your new bike, its shiny and immaculate look fills your heart with a different kind of joy. You give it much needed maintenance and care to make sure it continues to look new and vibrant over time. However, like most other things, your bike is also naturally subjected to scratches and dents. Moreover, regular use also leads to wear and tear. Combined, all of this leads to a decline in your bike’s market value, also known as depreciation.

Depreciation has a bearing not only on the resale value of your bike but also when you buy bike insurance online. Considering that it is unavoidable, some insurers offer a zero-depreciation cover to its policyholders to deal with this aspect better. It comes as a rider option with the basic two-wheeler insurance policy to take care of your bike concerns.

What is Zero Depreciation Rider?

Although the basic bike insurance policy covers your vehicle against all the damages occurred due to various reasons, the amount received after the claim settlement comes with a deduction. If you have opted for a  zero depreciation cover while buying bike insurance online, it will help you get the entire sum assured.  Zero depreciation rider with the standard bike insurance policy enables you to protect your bike against caused losses without considering any deductions factors for its market value, over time.

How does It work?

When you buy bike insurance online, the policy offers you coverage on different parts. However, when your bike gets damaged, it declines its monetary value. The rate of depreciation varies for different parts of your bike. It also leads to a decline in the coverage offered for a particular part. Since the market value of your motorcycle is depreciating with its use over time or the damages occurred, you will receive less financial support while making a claim in the future.

However, if you have opted for zero depreciation coverage as an add-on benefit, you will be able to eliminate the factors responsible for reducing its market value and get coverage as per your sum assured. The current value of your bike as per depreciation will become insignificant.

Zero depreciation cover helps make sure you get the entire sum assured while making claims, unaffected by the current market value of your bike.

Zero Depreciation Insurance As an Add-On

Some of you may wonder if zero depreciation insurance is the same as comprehensive bike insurance. However, that’s not true. Zero depreciation cover, as mentioned above, is a rider benefit that you need to buy over and above your standard policy as an add-on. When you buy bike insurance online, it offers you extensive coverage, including third party liability for you and your bike. However, it does not provide you with zero depreciation benefits. If you wish to get such a benefit, you must buy the rider option along with your policy separately.

Get Zero Deprecation Cover for Added Benefit

Now that you know what zero depreciation cover is and how it works, you must give it a thought when you buy bike insurance online. You may need to pay a little extra premium to avail of this benefit, but it will prove its worth over the years. Bike insurance online policy as provided by reliable insurers like Tata AIG also offers you the option to add other rider benefits like zero depreciation cover, emergency medical expenses and additional personal accident compensation among several others. When you buy the right policy and add critical riders to the same, you can enjoy great peace of mind against the possibility of facing unforeseen challenges.

Buy bike insurance online and safeguard your vehicle and yourself both.