Indian law mandates all cars plying on Indian streets to have a third-party liability car insurance. This insurance policy protects you from any liability arising out of an accident with a third-person by your insured automobile.
But what about damage to your vehicle? The third-party liability does not compensate you for damages to your own vehicle. If you do want protection for damages to your vehicle, you would have to purchase a comprehensive motor insurance policy. With a comprehensive four wheeler insurance
policy, you not only get protection for third-party liability and own damage cover, but you also have the option of enhancing your coverage by purchasing additional covers. If chosen correctly, these add-ons are quite beneficial. One such cover is the Zero Depreciation add-on.
Zero Depreciation, also known as nil depreciation, is when you receive reimbursement for your car insurance claim without depreciation being considered on the repaired car parts. Generally, a car insurance cover without this add-on results in lower compensation due to the effects of depreciation on various car parts; hence, you receive a notably low claim amount. With a Zero Depreciation Cover, the effects of depreciation on car parts are nullified and the insurance company compensates you for the entire repair cost.
The uses of Zero Depreciation add-on cover:
- Increases claim amount
When your insurance company considers depreciation, the claim amount is reduced considerably. However, if you have a Zero Depreciation Cover, your claim amount increases. Your insurer will pay the entire amount required to repair the damaged parts.
- Affordable premium
People usually avoid purchasing this cover as they assume it to be expensive. On the contrary, this is not the case. The premiums are quite affordable. It is possible to compare the costs of the Zero Depreciation cover available on different policies online. You can then go for a plan, which offers you this add-on at the best rates.
- Helps save your money
Under your car insurance policy, if the zero depreciation car insurance
cover is missing, you are liable to pay the remaining portion of the claim. Hence, it is better if you purchase this cover.
Here’s what you should keep in mind while purchasing the Zero Depreciation add-on:
You must buy this cover especially if your car is brand new and the parts are expensive. If you own a premium car, the spare parts will cost more. And if you do not have a Zero Depreciation Cover, the costs of repairing these parts would be way too high. Therefore, don’t think twice and purchase the Zero Depreciation Cover. It proves to be beneficial during the car insurance claim process and increases the claim payout. With its help, you will be able to make the most out of your premiums.
Go online and look at the various car insurance companies that offer you the Zero Depreciation add-on. After including the add-on cover in your comprehensive car insurance policy, make sure you calculate the premium online so that you know the additional cost on your policy.