What is Zero Depreciation in Car Insurance?

In the case of an accident, if your four-wheeler is damaged, you might not be able to recover the expense incurred on the parts replacement. This is when zero-depth car insurance can help you.

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​Depreciation in car insurance​​ online often refers to the loss in value of a car over time because of factors such as wear and tear, age, and obsolescence. Each car component has a different rate of depreciation. 

In the case of an accident, if your four-wheeler is damaged, you might not be able to recover the expense incurred on the parts replacement. This is when zero-depth car insurance can help you. Let’s understand zero depreciation in car insurance in detail.

What Is Zero Depreciation In Car Insurance

Zero depreciation in commercial car insurance and personal car insurance helps protect your four-wheeler against physical damages caused to the four-wheeler without factoring in the element of depreciation. Although a standard car insurance policy​ offers coverage against losses arising in case your four-wheeler is stolen or damaged when you file for an insurance claim settlement, the compensation you get is after a standard deduction of depreciation.

A car insurance​ plan with zero depreciation coverage can cover the entire compensation amount.  

Benefits Of Zero-Depth Car Insurance

Here are some of the best benefits of Zero Depreciation car insurance to help you determine if it is worth buying this add-on cover:

  • Helps limit out-of-pocket expenses by excluding depreciation value when filing for an insurance claim settlement.

  • All of your car’s parts are included when you buy zero-dep car insurance coverage, from fibreglass material to the bonnet and the bumper. However, it is essential to note that this add-on cover will not include the tubes and tyres.

  • Ensures that you get the most of your claims associated with the insured parts settled without considering the car’s depreciation amount.

  • Zero depreciation in car insurance adds more value to basic car insurance coverage.

  • With zero-depth car insurance coverage, you can ensure complete peace of mind.

  • Also, with all major insurance providers offering this add-on cover, you can save yourself a lot of hassle by buying a zero-depth car insurance cover by paying a little extra premium.

Factors To Consider Before Buying The Best Zero-Depth Car Insurance

The following are a few essential points to consider while buying car insurance with zero depreciation cover:

  • Consider the age of your four-wheeler. Zero depreciation in car insurance is applicable to four-wheelers under the age limit of 5 years. So, in simple words, only new four-wheelers are eligible for zero-depth car insurance.

  • As compared to a basic car insurance policy, zero-depth car insurance will be slightly more costly in terms of premium. It is not recommended to pay high insurance premiums for four-wheelers older than 3 years. 

  • However, if you live in a high-risk area or own a luxury car, you should consider buying a zero-depreciation add-on. A zero depreciation plan premium depends on three main factors: your location, the model of the car and the age of the car.

  • While settling insurance claims, the zero-depth car insurance covers only the cost of the four-wheeler part’s depreciation and does offer cover for compulsory deductibles.

To Wrap It Up

With the availability to purchase policies online, the process to renew and buy zero-dep car insurance is quite hassle-free. For both buying zero depreciation and car insurance renewal online, zero depreciation can be done through the insurance provider’s website. However, you must first choose a credible insurer to ensure the best coverage for your car.

 

Car Insurance