Hdfc Ergo Zero Depreciation Add-on

It hurts when your insurance company pays the claim amount after factoring in for the depreciation on your car. However, opting for the Zero Depreciation add-on cover ensures that your insurer offers you the complete coverage amount, i.e., full cover for all the parts of your car sans deduction of the depreciation amount. This means that in the event of your car getting damaged due to any reason including vehicular collision, the insurance company will pay in full the entire cost of your car. This does not cover engine damage caused due to an oil spill or waterlogging. Also, you can buy this cover only if your car is equal to or less than five years old. The premium charges for this cover are high, which means that the policyholders must pay an amount equivalent to 15-20 percent over and above the standard premium rates.

Benefits of HDFC Ergo Zero Depreciation Add-on Cover

Highlighted below are some of the benefits of buying a zero depreciation add-on cover along with your standalone own damage/ comprehensive car insurance plan:

• Increased Protection: A zero depreciation add-on cover offers additional protection to the existing car insurance plan. This add-on cover increases the coverage which is offered under a car insurance plan. Costs incurred because of replacement or repair of car’s insured parts are settled without considering the depreciation value.
• Affordable: Although, by including a zero depreciation add-on cover can increase the premium amount payable towards a car insurance plan, however, it is an extremely beneficial add-on cover as it offers enhanced coverage. With the help of this add-on cover, a policyholder can save money when availing a claim for a car insurance plan as this add-on cover lets the policyholder receive the claim amount without including depreciation cost.
• Claim Amount Without Depreciation: When you include a depreciation cover for your car insurance plan it enhances the coverage of the existing car insurance cover. This add-on assists the policyholder in reducing the chances of paying depreciation expenses from their own pocket when filing a claim for a car insurance plan.

Depreciation Rate Applicable on Car With And Without Zero Depreciation Add-on

Following are covered under HDFC Ergo car insurance policy with zero depreciation cover:

• A zero depreciation add-on cover offers coverage towards partial damages to tyres and battery.
• Replacement or repair costs incurred by the policyholder during the claim settlement would be offered to the policyholder.
• Compensation/coverage for depreciable car parts like rubber, plastic parts, nylon and fiber is offered to the policyholder.

What is not Included under a HDFC Ergo Car Insurance Policy with Zero Depreciation Cover?

Following are not covered under HDFC Ergo car insurance policy with zero depreciation cover:

• Total loss or damage of the insured car is not covered under a zero depreciation add-on.
• Regular wear and tear or ageing shall not be covered under a car insurance plan with zero depreciation add-on.
• Loss or damage to any uninsured items like tyres, gas kits or a bi-fuel kit is not covered.
• Own damages incurred by the insured car because of mechanical failure or fault is not covered.

Factors Affecting HDFC Ergo Zero Depreciation Cover

Before you opt for a zero depreciation cover, you must keep certain factors in mind.

• You can buy zero depreciation cover only if your car is not more than five years old.
• Replacement of only the depreciated value of the car parts is possible in case of basic zero depreciation car insurance cover.
• Damage caused to the car’s batteries or other parts can also be recovered. However, the coverage is limited as 50 percent depreciation is deducted on car batteries while 30 percent is deductible on other parts of the car made of plastic, rubber or nylon.
• Seeking the benefits of zero depreciation cover involves paying higher premium amounts. Therefore, you must consider buying this only if you are ready to payhigh premium.