Zero-depreciation (Zero Dep) bike insurance has become increasingly popular among two-wheeler owners, especially those buying motor insurance for the first time. The main attraction of this add-on cover is that it reduces or completely removes depreciation deductions on parts during accident claims.

However, many policyholders opt for Zero Dep insurance without fully understanding how it actually works. This often leads to confusion and disappointment at the time of claim. To help you make an informed decision, let’s clear seven major misconceptions about zero-depreciation two-wheeler insurance in simple terms.

Before we begin, it’s important to note that Zero Dep cover is always an add-on to comprehensive insurance, not a standalone policy.

Myth 1: Zero Depreciation Insurance Means Zero Expense

Many people believe that once they have Zero Dep cover, they won’t have to pay anything during a claim.
Reality: Zero Dep only removes depreciation on replaced parts. You may still need to pay:

• Mandatory deductibles

• Costs beyond policy limits

• Charges for items not covered under the policy

So, Zero Dep reduces costs—it doesn’t eliminate them completely.

Myth 2: Zero Dep Is Useful Only for New Bikes

It’s often assumed that this cover is meant only for brand-new bikes.
Reality: Most insurers offer Zero Dep for bikes up to 3–5 years old, and some even up to 7 years, depending on policy terms. If your bike is well-maintained and frequently used—especially in metro cities—this cover can still be beneficial.

Myth 3: Zero Dep Is Automatically Included in Comprehensive Insurance

Many buyers assume that comprehensive insurance already includes Zero Dep.
Reality: Zero Dep is a separate add-on that must be selected by paying an extra premium. If you don’t opt for it, depreciation will be deducted during claims.

Myth 4: Zero Dep Covers Every Expense Related to an Accident

Some believe that Zero Dep means full coverage of all repair costs.
Reality: Zero Dep only applies to depreciation on replaced parts. Expenses such as:

• Towing charges

• Engine damage

• Consumables
  require separate add-ons. Not everything is automatically covered.

Myth 5: Zero Dep Guarantees 100% Claim Amount

Another common belief is that Zero Dep ensures full claim settlement every time.
Reality: This cover does not apply to:

• Normal wear and tear

• Consumables like oil, grease, coolant, nuts & bolts

• Mechanical or electrical failures

• Engine damage (unless engine protection add-on is purchased)

Claims are still subject to policy conditions.

Myth 6: Zero Dep Insurance Is Too Expensive and Not Worth It

Many people dismiss Zero Dep without comparing costs.
Reality: Zero Dep typically increases the premium slightly, depending on the bike model. But during an accident, it can significantly reduce repair expenses, making it cost-effective—especially for premium or high-maintenance bikes.

Myth 7: Zero Dep Cover Is the Same Across All Insurance Companies

People often assume all insurers offer identical Zero Dep benefits.
Reality: Coverage varies by insurer, including:

• Number of claims allowed per year

• Age eligibility of the bike

• Parts covered under Zero Dep

• Exclusions and limitations

Always compare policy terms, not just premiums.

Two Additional Misconceptions You Should Know

• Unlimited claims are allowed: Most insurers allow only 1–2 Zero Dep claims per policy year

• Zero Dep changes the IDV: Zero Dep does not affect the Insured Declared Value (IDV); it only impacts depreciation during repair claims