Should you opt zero depreciation add-on for your bike that can increase your settlement amount
Should you opt zero depreciation add-on for your bike that can increase your settlement amount 02nd January 2023
When looking to purchase bike insurance coverage, there are a variety of options available. A comprehensive policy with zero depreciation add-on coverage is among the most used motor insurance policies.
This post will discuss the advantages of purchasing the zero depreciation add-on, how it improves coverage, and most importantly, whether the higher price is justified. To learn more, keep reading.
What is zero depreciation on bike insurance?
As a policyholder, you must be informed of the numerous crucial provisions of bike insurance. The depreciation component is one of them. Depreciation is nothing more than a loss in value that occurs over time. The bike and its components experience normal wear and tear over time. The result is depreciation.
When you file a bike insurance claim, the depreciation factor comes into play, and your claim amount is reduced. This is why you want to think about acquiring zero-depreciation two-wheeler insurance. You can purchase this add-on coverage along with the complete bike insurance plan. No matter how old or the bike has depreciated, the insurance company will pay out the entire claim amount when you have a zero depreciation cover.
The benefits of bike insurance with zero depreciation.
● More compensation: With a zero depreciation add-on, the cost of repairing your bike is covered without accounting for the bike's diminished worth. Consequently, you are reimbursed for the entire coverage.
● Saving money: You pay a higher cost with a zero depreciation add-on. But it's also true that your insurer will pay you more when you file a claim. Additionally, if you get insurance from an insurer that permits limitless zero depreciation, you can save money each time you file a claim for your motorcycle.
● Abundant coverage: Every bike owner can benefit from a zero depreciation add-on cover, valid for inexperienced and seasoned drivers. This acts as additional insurance to handle any financial problems arising from any catastrophe with your bike.
● Restrictions on out-of-pocket charges: With this add-on coverage, you can limit any additional costs that an insured person would otherwise be required to pay as depreciation charges. The depreciation value will not be considered when settling your claim, though, if you already have this add-on coverage.
● Reduces mental stress: The zero depreciation add-on cover provides a second layer of protection, which gives you more peace of mind by reducing your financial stress to a large extent.
When is a zero depreciation add-on cover required?
1. If you've only just started riding:
Compared to seasoned bike riders, new riders are more likely to make mistakes that result in collisions and bumps. Therefore, a zero depreciation cover would benefit you if you have just started riding two wheels.
2. If you purchased a new bike:
Since new bikes are so expensive, you should cover them as much as possible with protection. You may aid yourself at this point and preserve your bike in excellent shape for longer by getting a decent zero depreciation cover.
3. If you drive a pricey automobile:
If you possess an expensive bike, you should purchase the zero depreciation rider. A costly motorcycle requires a lot of money for repair and maintenance. Thus, you should be reimbursed for the total cost of each repair each time.
4. If your neighbourhood is dangerous:
Some neighbourhoods are crowded or prone to accidents. Acquiring zero depreciation insurance will benefit you if you live in such a location.
Reminders regarding the zero depreciation add-on cover.
Keeping the zero depreciation add-on cover in mind will help you recall the following:
● It is offered for new bikes up to two years old
● This addition does not waive the required deductibles
● Most insurance companies permit claims with no depreciation addition twice per year
A comprehensive bike insurance policy provides additional financial security if the bike sustains damage. Furthermore, a zero depreciation add-on to comprehensive insurance strengthens and adds more security when you file a claim. The most incredible thing about this addition is that by avoiding depreciation reductions, it can raise the amount of your claim. If the zero depreciation add-on is offered when you renew the bike insurance plan, you should consider opting in.
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Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.