The value of a car depreciates over time due to regular wear and tear. As a result, this devaluation impacts the claim settlement process and hinders one from recovering the cost of repairs and replacements. However, car owners can avoid such circumstances by opting for zero-depreciation car insurance.
A zero-depreciation car insurance policy offers several benefits, including full coverage of car parts without any deduction for depreciation, protection against monetary losses due to car damages, and peace of mind during uncertain situations. However, weighing the advantages against the higher premium costs is essential before deciding.
It is a comprehensive car insurance plan with zero depreciation’ as an add-on cover. Every motor insurance policy accounts for the vehicle's depreciation, even if the car is only three months old.
So if this cover is opted for, insurers will leave out the depreciation at the time of claim. Thereby offering complete cover to policyholders.
For instance, if an individual’s car undergoes damages due to a collision, their insurer will not deduct any sum from the claim amount under depreciation. The insurance provider will, therefore, bear the total expenses of replacements.
A standalone car insurance policy offers comprehensive coverage, albeit with certain limitations. This is where a zero depreciation car insurance plan proves resourceful as it covers all the damage-related costs for rubber, metallic, and fiber parts without deducting depreciation.
That said, such a policy usually does not cover engine damage caused by oil leakage or water ingress.
Moreover, consumables, oil changes, and mechanical breakdowns are not covered under this plan. So, one cannot make claims related to engine mounts, brake pads, wipers, batteries, and tires. Zero depreciation is also known as bumper-to-bumper insurance.
Anyone who owns a car in India can opt for Zero Depreciation Car Insurance.
It is available for both new and old cars. However, the eligibility criteria may vary depending on the car's age and the insurance company's policy. Therefore, checking with the insurance company before purchasing the policy is advisable.
Zero Depreciation Car Insurance, also known as Nil Depreciation or Bumper-to-Bumper insurance, is a comprehensive car insurance policy that offers coverage for the entire value of your car without considering depreciation.
In case of a total loss or theft, the insurance company will pay the entire insured value of the car without considering depreciation.
The policy covers repairing or replacing parts without any depreciation deduction.
You will not have to worry about the declining value of your car and the impact it might have on your claim amount.
Zero Depreciation Car Insurance is more expensive than regular car insurance policies due to the comprehensive coverage offered.
The policy is usually only valid for a limited time, 2 to 3 years.
The policy only covers parts and accessories of the car, not the engine, gearbox, or battery.
Ultimately, choosing a Zero Depreciation Car Insurance policy will depend on your car's value, budget, and level of coverage you require. Therefore, comparing various insurance policies and considering your specific needs is always recommended before making a decision.
Zero depreciation insurance covers the total cost of repairs and replacements of parts without considering their depreciation value.
The policyholder does not have to bear any unexpected or additional costs during the claim process, as the insurance company covers all the expenses.
The premium for zero depreciation insurance is usually higher than a standard insurance policy, but it offers comprehensive coverage.
As there is no need to calculate the depreciation value of the damaged parts, the claim process is quicker and more efficient.
This type of insurance offers better protection against accidents and other risks that may cause damage to the vehicle.
With a zero depreciation insurance policy, the policyholder can have peace of mind knowing that their vehicle is well protected against any damage or losses.
If one is planning to purchase this type of insurance, one should keep a few points in mind, such as the following-