Having a well-rounded motor insurance plan is essential to protect one from financial and legal troubles. In fact, in India, it is mandatory to own at least a third-party car insurance plan that protects one from financial stress in case of third-party damages. On the other hand, a comprehensive insurance policy covers both third-party and own-car damages.
Depending on the extent of coverage, you must choose a suitable car insurance plan. However, when it comes to a comprehensive car insurance plan, you also get the option to customise it with add-ons for extended coverage. A zero dep car insurance policy refers to a comprehensive insurance policy with a zero-depreciation add-on cover included in it. Without this add-on, insurers will consider the amount of depreciation on your vehicle’s parts and pay you the claim only after deducting the depreciation value.
On the other hand, with a zero-depreciation add-on, you will get more compensation on your claim as the depreciation is not subtracted.
Keep reading to know more about why including this add-on in your car insurance policy is the best deal for you.
Benefits of Opting for a Zero Depreciation Insurance Policy
Two of the primary benefits of opting for a zero dep car insurance policy are highlighted below:
- You will be able to get a higher claim amount. This is because depreciation on your vehicle’s parts will not be calculated.
- It helps save money. With a zero depreciation add-on cover in your comprehensive insurance, you will not have to pay anything from your pocket in case of a claim.
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Who Should Opt For A Zero Depreciation Car Insurance Policy?
Opting for a zero dep car insurance policy is ideal for individuals in the following circumstances:
While buying a new car: Buying a brand new car anyway involves quite a lot of expenses, and in such cases, individuals just need to spend a little more amount to include a zero-depreciation add-on in the comprehensive insurance plan for well-rounded coverage in the future.
If you have bought a car recently or if your vehicle is less than 5 years old: Considering that your vehicle’s depreciation will increase with time, a zero-depreciation car insurance policy will ensure you don’t have to pay for it during claims.
Why is Zero Dep Car Insurance the Best Deal for You?
Although it gives comprehensive monetary benefits, it is important to evaluate if this car insurance add-on is really beneficial for you or not. To know if it is a perfect fit for your needs, consider the points mentioned below –
- Claim amount is calculated only on non-depreciated value: As already mentioned, the claim amount will not be affected by depreciation. Deductibles will be there, but your claim amount will not decrease much.
- Do not need to bother about repair costs much: Accidents can happen at any point in time, and you would expect the insurance company to cover for the repair costs as extensively as possible. With a zero depreciation cover, you will not have to shell anything from your pocket as the claim amount will not be calculated on the depreciated value.
- No Deduction on Car Parts: Without a zero depreciation add-on, your vehicle’s parts (rubber, plastic, nylon parts, wooden parts, etc.,) are depreciated, thereby creating a dent in your finances. Therefore, to avoid such instances, it is a good deal to opt for a zero depreciation car insurance cover.
- Enhanced compensation and peace of mind: With a zero depreciation car insurance cover, you can be sure that your insurer has your back during unfortunate times and you get complete peace of mind.
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Thus, individuals can consider opting for zero dep car insurance policy to save finances, and they can also get full coverage on damage to cars without counting the depreciation cost. But before that, individuals must know that this can only be bought as an add-on policy. Therefore, read the terms and conditions carefully to know the coverage before opting for one.
