Zero Depreciation Car Insurance - Is It Worth The Buy?
Published On Apr 12, 2019 5:30 AM By Megha Raha
Benefits Of Zero Depreciation Car Insurance
Bumper to bumper - If you are a car owner, you must have heard about this term a thousand times. Little were you aware that bumper to bumper is just another name for zero depreciation car insurance. To begin with, this add-on is of great benefit. It saves you a good amount of money in the long run. Wondering how? Let’s see.
It is no secret that a vehicle of any type is a depreciating asset. The more wear and tear in a vehicle, the higher is the depreciation. In short, having the best car insurance policy is never complete without adding a zero depreciation cover if available.
Zero dep offers complete coverage to a vehicle without factoring depreciation. Before taking a leap, let’s check out a few other alternative names for a zero depreciation cover. These include:
- Bumper to Bumper
- Nil Depreciation
- Zero dep
Motor Insurance Policy Paired With Zero Depreciation - Think It’s a Good Idea?
Stop making decisions for a while and think. If your car rams into another vehicle or a tree, the damages would be severe. Care calculating the expenses? Well, the numbers are definitely going to put you in a state of shock!
Did you know that standard car insurance does not offer enough coverage to a vehicle? Cars age with time and so do their parts. They wear out and depreciate in value. When you buy car insurance, these parts are not covered. Having a zero dep add-on saves you from the trouble of spending riches in getting these parts repaired. Plastic and metal parts in a vehicle are prone to degrade with time and are covered using a zero depreciation add-on.
**Please Note: 30% depreciation is deductible on car parts made of plastic, nylon and rubber**
Since it is an add-on, you certainly pay extra in terms of premium but isn’t it worth it? After-all, bearing the brunt of damages in a vehicle is quite expensive. With the zero dep feature added to your car insurance, the insurance company pays it all.
What are the most availed benefits of a zero depreciation car insurance policy?
1. Zero depreciation car insurance enhances the value of a basic insurance policy. Your expenses go down with this add-on
2. Replacing or repairing parts in a vehicle could cost you a fortune. These expenses are met without factoring in depreciation of the vehicle
What to Remember?
Zero depreciation is an exclusive feature added to a basic policy. It is not only available for new cars. In fact, companies offer zero depreciation car insurance policy for vehicles as old as 5-7 years. It offers higher coverage than a basic car insurance plan.
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