All You Need to Know About Zero-Depreciation Car Insurance Policy
Purchasing insurance for your car is not that difficult. Depreciation in motor insurance is the loss in value of an asset over time due to age, wear and tear, etc. Read this article to know about a zero-depreciation car insurance policy.
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If your car is damaged in the event of an accident, you may not be able to recover the entire expense for the replacement of parts. Your company will only pay for the replaced parts after deducting the depreciation amount. You have to pay for the difference between the market value of new car parts and the depreciated parts of the car. It is advised to avail a zero depreciation for your car insurance, with this you can get maximum reimbursement during the time of claim and can get the most out of your policy.
All You Need to Know About Zero-Depreciation Car Insurance Policy
A zero depreciation cover helps to protect your car against all physical damages caused to the car without factoring in the element of depreciation. A standard policy covers you against damages or loss of your car when you file a claim. The compensation is received after a standard deduction of depreciation. Car insurance with zero depreciation cover can provide the entire compensation amount. It can be availed for brand new cars and you can also opt at the time of policy renewal. In a zero depreciation four-wheeler insurance policy, the insurance company pays the entire claim amount without considering the depreciation on the value of the car. The add-on feature eliminates the possibility of any out-of-pocket expense from the owner.
Benefits of a Zero Depreciation Car Insurance Cover
- As depreciation cost is not taken into account while filing for a claim settlement, zero depreciation car insurance helps to curb out-of-pocket expenses.
- Without taking the depreciation amount, most of your claims regarding the insured parts are settled.
- It adds more value to your basic car insurance coverage.
- It makes your investment almost zero.
How is the Zero Depreciation Cover is Different from the Normal Car Cover?
1. Zero depreciation does not affect the claim settlement process and the full compensation is given. In case of normal car insurance, the claim amount is received after deduction of depreciation.
2. The premium to be paid for normal car cover insurance is low as compared to zero depreciation cover.
3. A zero depreciation cover is meant for new cars. Normal car insurance cover can be taken for cars older than 3-4 years.
Who Can Buy Zero Depreciation Cover?
- People with new and luxury cars.
- Inexperienced drivers.
- People who live in accident-prone areas.
- People who worry about small bumps and dents.
- People who have a car with expensive spare parts.
Take Away
In order to protect your brand new car, it is advised that you should opt for a zero depreciation cover. With this cover, you can be assured of complete peace of mind. You can save yourself from a lot of hassle by purchasing zero depreciation cover. Remember that a zero depreciation policy is applicable to cars under the age limit of 3 years.
Also Read:
How Many Car Insurance Claims Can be Filed in a Year?
Tips to Maintain Safety on Roads While Driving A Car
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
