A Car Owner insures his vehicle in a hope that in case of claim settlement, no amount shall be incurred to him for the damage or losses to the vehicle. But the major setback for a Car Owner arises only at the time of Claim Settlement when the Insurer charges them certain amount claiming it to be due to depreciated value of the vehicle and its damaged parts.
Depreciation simply means decrease in the value of any "thing" or "asset" or "material" as they age and get older. As in the world of automobiles, we are aware regarding the vast amount of difference in the price of a New vehicle and a Second-hand or say, used vehicle, the Depreciation component becomes very important in regards to the Motor Policy.
If you wish to ensure your peace of mind at the time of Claim Settlement, the best option for a Car Owner is to go with Zero Depreciation cover which is also known as "Nil Depreciation" or "Nil Dept" cover.
Zero Depreciation Cover provides you the complete coverage of your car and its parts; hence is also known as "Bumper to Bumper Car Insurance" by many Insurers. It leaves out the depreciation parameters from your policy coverage and guarantees complete cover. In this case, Insurer pays the complete cost for the body parts affected due to damage.
Zero Depreciation covers the following:
Zero Depreciation does not cover the following:
Zero Depreciation premium is little costlier than the Standard Car Insurance as it provides you the complete coverage of your automobile vehicle irrespective of the depreciated value of the same, but it is still advisable to have the Zero Depreciation in your policy if it's affordable in your budget.
The Premium of Zero Depreciation is generally around 15-20% of your Standard Premium but is still based on the following factors:
Zero Depreciation cover is recommended in the following cases:
Best of Luck on your purchase of Car Insurance Policy!
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