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