Zero depreciation bike insurance can raise your claim pay-out on newer bikes. See how it works, its limits and who needs it. Get a quote at Insurance Kro.
Zero depreciation bike insurance is an add-on that stops the insurer from cutting depreciation on replaced parts when you make a claim. This usually means a higher pay-out and less money from your pocket. It is often a good fit for new or fairly new bikes, but it costs extra and has limits.
Let us see how it works and how to decide.
What is depreciation?
Depreciation means loss in value with age. A part on your bike that is two years old is worth less than a new one. In a normal claim, the insurer reduces the value of replaced parts for this age loss. You pay that difference.
This applies to parts such as plastic, rubber, glass and metal, as per policy terms. Check your policy wording for the exact list.
What zero depreciation does
With the zero depreciation add-on (also called nil depreciation or bumper-to-bumper), the insurer does not cut depreciation on the replaced parts, as per policy terms. So the claim pay-out is higher, and you pay less at the garage.
You still pay:
- The compulsory deductible, which is a part of every claim
- Any voluntary deductible you chose
- Items not covered by the policy
Here is a simple example. Imagine your bike falls and the plastic body panel must be replaced. Without the add-on, the insurer pays the panel's price after reducing for its age. You pay the gap. With the add-on, the gap is usually not cut, so you pay far less. The size of the difference depends on your bike, its age and your policy.
Who should take it, and who may not need it
Zero depreciation is usually worth a look if:
- Your bike is new or only a few years old.
- You ride daily in heavy traffic, where small falls and scrapes are common.
- You park on the road, where light damage can happen.
- You want fewer surprises at the garage.
On the other side, it may not be needed if:
- Your bike is quite old. This add-on is usually for newer vehicles, often up to around 5 years old, but you should check the insurer's rules.
- You ride very little.
- You are happy to pay for repairs yourself.
Limits to know
Before you buy, check these points:
- Claim limit: the add-on usually allows only a limited number of claims per year.
- Age limit: it may not be offered once the bike crosses a certain age.
- Exclusions: it does not cover wear and tear, mechanical breakdown or other things the policy excludes.
- Deductible: you still pay the compulsory deductible.
- Needs a comprehensive policy: the add-on works with own damage cover, not with a third-party only policy.
Terms differ by insurer, so read the wording with care.
Effect on NCB
Making a claim usually means you lose your No Claim Bonus for that year, even with zero depreciation. So for very small damage, you may choose to pay yourself. Learn how it works on our no claim bonus page. You can also add an NCB protection add-on in some policies, but terms differ.
How to decide in four steps
- Check the age and value of your bike.
- Think about where and how much you ride.
- Ask for the zero depreciation terms: claim limit, age limit and exclusions.
- Compare the extra cost with the risk you want to cover.
If you also own a car, you can read our post on zero depreciation car insurance to see the same idea for cars. For full details of the add-on, visit our zero depreciation cover page.
Zero depreciation is not the only choice. Others include roadside assistance, engine protection, return to invoice, consumables cover, key and lock replacement and tyre protection. See our guide on bike insurance add-ons to compare.
Rules can change and differ by insurer. Your policy document is the final word. When you are ready, you can get a quote and see what fits your bike.
FAQs
Is zero depreciation bike insurance worth it?
For a new or fairly new bike, it often is, because it reduces what you pay at the garage. For an old bike, it may not be offered or may not be needed.
Can I take zero depreciation with a third-party policy?
No. It is an add-on to own damage cover, so you need a comprehensive policy.
How many claims can I make with this add-on?
It is usually limited to a set number of claims per year. Check the number in your policy wording.
Does it cover engine damage?
Not by itself. Engine damage usually needs a separate engine protection add-on, and some damage may be excluded.
This guide is for information only. Rules and policy terms can change, and the policy document is final. Please read your policy wording.