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Why is zero dep insurance policy necessary for bike owners

A zero depreciation policy, also called a zero dep bike insurance policy, can be very useful and not only as your two-wheeler gets old, but right from the very beginning, right when it leaves the show room. 

Benefits of zero dep bike insurance

That’s because a zero dep bike insurance policy gets you the whole claim amount for your bike, disallowing the insurer from considering how time and usage depreciates the value of your bike. Two-wheelers witness dramatic depreciation in value, not just of the vehicle itself, but also of the parts, over time and therefore this kind of insurance is extremely relevant to you as the owner of a two-wheeler. 

The main reason why bike insurance policy buyers look for a zero dep bike insurance policy is to ensure that they get the full bike insurance policy amount with only the compulsory deductions. They want to avoid the insurance company determining and deducting depreciation value. 

Of course with all these benefits, a zero dep bike insurance policy is – as one might have expected – more expensive than a regular bike insurance policy. However, this is where two-wheeler owners should play it smart. Whenever you are faced with two spend options, and this is especially true for insurance, consider how much you would spend on the insurance and how much you will save if the incident being insured against occurs. Clearly, when you look at a zero dep bike insurance policy, you will see that although expensive, the premium amount is practically negligible as compared to what you will save by the insurance company not determining and deducting depreciation on your bike. 

Depreciation calculation begins as soon as you get your bike. By the time you’ve ridden it home the very first time, it is already worth 5% less and as the years go by, the depreciation notches up substantially. By the time your bike is just four or five years old, the depreciation can go up to 50%. This amount is huge, especially when you are talking about premium bikes and sports bikes. 

Did you know: 

The value of your bike witnesses the most dramatic depreciation in the first two years, typically between 20% and 25%.  

Key considerations while getting zero dep bike insurance

Those were all the reasons why you should get a zero dep bike insurance policy. But since we are all about insurance buyer advocacy, we will also tell you all about the considerations to keep in mind when opting for a zero depreciation bike insurance policy. 

Most zero depreciation bike insurance policies allow a limited number of claims during the policy period; most often that amounts to two claims at best. 

The age of the vehicle is a huge consideration in whether you will even be offered a zero dep bike insurance policy and as such if you are riding your cool uncle’s vintage Royal Enfield, you might just have to accept a regular bike insurance policy. 

If your two-wheeler is damaged beyond repair or even if it gets deemed as a the total loss, you do not get to make a claim at all even with your zero dep bike insurance policy. 

You need to get your two-wheelerxed specifically at a garage from the list specified by the insurer. (Tip: do double check that a said garage is still on the list before visiting). 

How to go about getting zero dep two wheeler insurance online

You can easily get zero dep two wheeler insurance online, quickly, conveniently and at very competitive premium rates, when you shop for insurance on the IIFL platform. Here’s how to go about it. 

Step 1 – click here www.iilfinsurance.com to arrive at the destination for buying competitively priced two wheeler insurance online

Step 2 – select two wheeler insurance form the tiled menu that shows up on the home page itself. 

Step 3 – select the vehicle registration and vehicle type details from the drop down menu that will be available on the online form. Choose correctly and double check your choices. 

Step 4 – fill in your personal details correctly. 

Step 5 – put a tick by clicking on the box allowing insurers to send you offers. Click the button that says Get Quotes.

Step 6 – while the quotes are loading, click on add filters and click on the box next to zero depreciation so as to opt for it.

Step 7 – include roadside assistance as well if you will need it and scroll down.

Step 8 – clock on additional covers and discounts to check if any are relevant to you. 

Step 9 – go through all the offers for inclusions, exclusions, IDV and freebies. 

Step 10 – select the best deal and pay up.


My best friend and I bought the same bike but his insurance premium is much lower than mine. How can that be?

Besides the model and variant of your two wheeler, your RTO allocation also plays a part in determining your premium amount.

What is the use of this add on known as road side assistance?

In case your bike is damaged to a bad extent and needs to be picked up and transported to a garage enlisted for zero dep bike policy linked repairs, you can make use of road side assistance, provided of course you have opted for it in the list of add ons.

I only need zero dep insurance when the bike is five to six years old, right, not before?

Unfortunately, this is a misconception. Your bike value begins to depreciate the minute you sign the purchase papers. Once it has left the showroom it is already valued at 5% less and by the end of the first year or two it could depreciate by as much as 25%, or even 27%.

Will I get the full zero dep claim amount for my bike even if it is stolen?

No, total loss does not get you your claim amount under a zero dep bike insurance policy.

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