Zero Dep Insurance

Zero depreciation meaning: A comprehensive car insurance policy with Zero Depreciation add-on cover ensures that the insurer covers the depreciation amount on the evaluated parts as specified in the policy document. The advantage of the add-on is that it can be used up to a certain number of times during the policy period.

Without the zero depreciation add-on, all insurers account for depreciation on your car's parts and satisfy your claim after making the necessary depreciation reductions. Having the add-on cover ensures that there are no deductions for portion depreciation.

The following are the categories of people that should purchase zero depreciation insurance:

New Car Owners - New car owners who have purchased a new car should consider purchasing this cover because depreciation begins the moment the car is sold. As a result, without this add-on cover, if a new car is damaged, the claim may be denied.

New Drivers - Individuals who have just started driving a car or who are new drivers may take a bit longer to become experts and will be involved in a collision. As a result, this add-on cover is necessary for such individuals.

Frequent Automobile Users - Because accidents can cause any amount of damage, it may be difficult for even elderly car owners to bear the cost of repair. As a result, if your vehicle is suitable for the zero depreciation plan, you should take advantage of it.

Owners of Expensive Luxury Vehicles - If you own a luxury car and it is damaged in an accident, it is obvious that you will have to pay a particular sum of money to restore it. As a result, a full claim amount can only help you have your car repaired quickly.

Residents in accident-prone areas - Individuals who live in high-accident zones are more likely to be involved in an accident. As a result, in order to obtain a reasonable level of compensation for having their vehicles fixed, they should select zero-depreciation coverage.

It will apply to repairs and replacements in the following circumstances:

• Natural and man-made disaster damage: If your car is damaged as a result of a landslide, earthquake, or flood or as a result of a terrorist attack, riots, or vandalism, our zero-cost add-on will assist you.
• Accidental damage: If your vehicle is damaged in an accident, our zero depreciation add-on will cover you.
• Damage while transiting: If your car is damaged while being transported from one place to another, we will cover it under our zero depreciation policy.

If you claim car damage for driving without a license, zero dep will not apply.

• Driving while high on drugs or booze.
• Mechanical breakdown or normal wear and tear.
• Engine oil, coolant, clutch oil, and so on.
• Your car has been totaled.
• The cost of repairs is equivalent to or greater than the insured value.
• Having claimed this add-on more than twice in a year.

If you read the tiny print of a comprehensive plan, you'll notice that the depreciation deducted on many products adds up quickly.

The Insurance Regulatory and Development Dep, for example, has mandated that:

• Rubber, nylon, and plastic parts, as well as batteries, are subject to a 50% depreciation deduction; fiberglass components are subject to a 30% depreciation deduction; and wooden parts are subject to a depreciation deduction based on the age of the vehicle (for example, 5% in the first year, 10% in the second year, and so on).
• In the event of a claim, a basic automobile insurance policy merely reimburses the depreciated worth of automotive parts replaced.

Since zero dep is an add-on feature, it is significantly more expensive. To obtain this add-on, you must pay an additional payment on your comprehensive auto insurance policy.

When filing a claim under zero-depreciation insurance, you must pay the mandatory deductible.

You can make up to two claims each policy year with zero-dep insurance.