Depreciation in car insurance policies usually refers to a car’s value loss over time due to factors such as age, wear and tear, etc.
Zero depreciation car insurance add-on cover ensures you do not pay the depreciation value of the replaced or damaged car parts and receive total compensation during claim settlement.
However, you must note that this add-on cover is not available under third-party car insurance; you can only purchase it with comprehensive and own-damage car insurance. Now, let’s get into the specifics of zero depreciation cover and its importance.
What is Zero Depreciation Car Insurance?
Zero-depth car insurance is also known as nil depreciation and bumper-to-bumper insurance. It is a car insurance add-cover that nullifies the impact of depreciation in your four-wheeler insurance policy.
Typically, if your vehicle gets stolen or damaged, the car insurance claim amount you receive accounts for the depreciation accumulated due to usage and the vehicle’s age.
However, with a zero depreciation car insurance cover you get the entire value of your four-wheeler’s components during a claim without any deductions for depreciation.
Importance of a Zero-Depth Insurance for Car
Below are some of the top benefits of zero depreciation cover that make it an essential addition to your car policy.
Increases Insurance Coverage
Adding a zero-depth car insurance cover to your four-wheeler policy enhances the overall insurance coverage you have for your precious car. This way, you are not required to worry about depreciation cost of various vehicle parts and any reduction of your insurance claim amount.
Lowers Your Out-Of-Pocket Expenses
Even if you get a comprehensive car insurance policy, the amount of insurance claim you get might not be adequate to meet the expenses incurred in replacing or repairing the vehicle’s components.
This is because of the depreciation amount accumulated on your four-wheeler, reducing its IDV (Insured Declared Value) and, in turn, the insurance claim amount. However, with zero-depth car insurance coverage, you do not need to worry about the depreciation of your vehicle’s components.
Increased Car Insurance Claim Amount
By adding zero depreciation cover to your four-wheeler insurance policy, you can claim the total replacement or repair expenses of the various insured parts of your four-wheeler.
And since the depreciation does not reduce the claim amount, you can benefit from an increased four-wheeler insurance claim amount.
Nominal Additional Cost
A zero-depth car insurance cover adds only a nominal expense to your four-wheeler insurance policy and substantial benefits to your insurance coverage.
Offers Peace of Mind
Knowing that your four-wheeler is completely protected from any damages, including depreciation cover, can give you peace of mind while driving your car.
Process for Car Insurance Renewal Online – Zero Depreciation Cover
- Navigate the car insurance page on your insurer’s website.
- You will get two options: New or Renewal – select Renewal.
- Enter all required information.
- Make the payment online.
- Once you have made the payment- you will receive confirmation via email.
To Wrap It Up
It is a general belief that zero-depth car insurance coverage is a must for new drivers as they are more likely to get into an accident. However, this coverage can also benefit experienced drivers as well. But, you must note that zero dep insurance after 5 years is not valid, which means if your vehicle’s age crosses five years, you cannot get zero depreciation coverage.
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