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Why Buy Zero Depreciation Car Insurance Cover?

Published On Sep 20, 2021 10:00 AM By InsuranceDekho

Do you want to enhance your car insurance benefits? Know why buying zero depreciation car insurance would be ideal.

Are you looking forward to making your car insurance more profitable? Why don’t you consider buying a zero depreciation cover? You must have heard of it while discussing car insurance with someone. If you did not know about its benefits then, now is the time to uncover them to expand your set of benefits. 

Why Buy Zero Depreciation Car Insurance Cover?

What Is Zero Depreciation?

Zero depreciation car insurance is an additional benefit that car owners can buy by paying an additional premium. It must be noted that standard car insurance policies do not come with zero depreciation cover. It is an optional cover.

How Does Zero Depreciation Car Insurance Cover Works?

When a car owner files a claim, the insurance company applies a specific rate of depreciation to find out the claim settlement amount. It is the car owner who has to pay the depreciation charges. But, if the car owner possesses a zero depreciation car insurance cover, it is the insurance company that has to cover the entire cost, subject to applicable excess/deductibles. Zero depreciation cover is highly recommended so that a customer can make the most of their insurance for their new car. 

4 Key Factors to Know About Zero Depreciation Car Insurance Cover

The prime 4 factors to know about zero depreciation car insurance cover are as follows:

  • Zero depreciation for car insurance is only available for cars that are not older than 5 years. 
  • Zero depreciation car insurance coverage is not accessible for its maximum limit or up to 100%. A policyholder may have to pay mandatory excess that the insurance company may levy. 
  • Zero depreciation car insurance may come with a limited number of claims that one can file during the policy year. 
  • Zero depreciation car insurance may come with a higher additional premium amount. 

Who Should Buy Zero Depreciation Car Insurance?

Individuals who should buy zero depreciation car insurance cover include:

  • Those with new cars
  • Those with luxury cars
  • New or inexperienced drivers
  • Those residing in accident-prone areas 
  • Those concerned about small bumps and dents
  • Those having a car with expensive spare parts 

Major Benefits of Zero Depreciation Car Insurance Cover

It is highly advised to buy zero depreciation car insurance cover to enjoy the below-mentioned benefits:

  • Helps in eliminating out-of-pocket expenses. Remember, depreciation cost is not considered while filing for a claim settlement if one has zero depreciation car insurance cover. 
  • Most of the car insurance claims related to the insured parts are settled without considering the depreciation amount.
  • The cover increases the value of basic automobile insurance coverage, thereby making the investment almost nil.

Factors to Note Before Buying Zero Depreciation Car Insurance Cover

Some of the key factors that one must consider before purchasing zero depreciation car insurance cover include:

  • The age of the car
  • The premium of the cover 
  • Number of claims allowed under the policy 

That said, don’t waste any more time. Go ahead and get your car covered for depreciation today!

Also Read:

Reasons Why You Should Renew Your Car Insurance Policy On Time

Why Buying The Lowest-Priced Car Insurance May Be A Bad Choice?

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.

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