Zero Dep Insurance

Like any other commodity, your car is subject to depreciation or the loss of value over time due to wear and tear. The car/bike owner, not the insurance provider, is initially responsible for carrying the depreciation liability. As a result, when a claim is settled, the amount of depreciation relevant to your car and its parts is subtracted from the compensation amount, reducing it. The Zero Depreciation add-on cover comes in handy here.

What is Zero Depreciation Car 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.

Who Needs Zero Dep Car Insurance?

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.

What is Zero Dep Insurance Inclusive?

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.

What is Not Included in Zero Depreciation Cover?

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.

Role of Zero Depreciation Insurance During Settlement

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.

Components to Consider in Zero Dep

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.

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