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Zero Depreciation Insurance: Deal or No-Deal?

Zero Depreciation Insurance: Deal or No-Deal?
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Zero Depreciation Insurance: Deal or No-Deal?

You probably have invested a lot of in-depth thinking and research into buying your brand-new car, now, the next step is to think over buying a reliable, valid car insurance policy for the same. Buying an effective car insurance online policy from a reputed and professional car insurer has to be at the top of your priority list to ensure financial safety for you self and your car!

While searching for the most relevant car insurance plan for your vehicle, you might have come across the term “zero depreciation insurance cover”. Ever wondered what the term meant? In this article, we will help you understand what zero depreciation motor car insurance cover is and whether it is important for your vehicle.

What is the Zero-Depreciation Insurance Cover?

Also referred to as the “Bumper to Bumper” or “Nil Depreciation” motor car insurance cover, this is a four-wheeler insurance policy that excludes the depreciation concept from the overall coverage. Thus, it ensures a complete, comprehensive cover for your car insurance policy. This implies that in case your car suffers any major loss or damage during a car accident or road mishap, no amount of depreciation would be eliminated from the given coverage due to the wearing out of any parts of the car excluding the batteries and tyres of the car. The motor car insurance company will be paying for the entire cost of the repair or replacement of the car’s body parts.

Zero depreciation car insurance cover is known to be offering 100 percent comprehensive coverage for specific car parts including the rubber, fibre, and even metallic parts without any deduction of the depreciation value. However, It is not used for covering the potential engine damage caused due to oil leakage or water ingression or any kind of mechanical breakdown, consumables, or oil change is not covered under the given policy. The zero-depreciation insurance cover comes with a specific limit on the overall number of insurance claims that you will be putting in a year.

Zero depreciation cover can cost around between 15-20 percent of the standard premium. It is mandatory for all the new cars for up to 5 years. The zero-depreciation car insurance cover serves to be immensely beneficial for individuals with:

  • Those having new cars
  • Those with luxury cars
  • New or inexperienced drivers
  • Individuals living in accident-prone regions
  • Individuals who are worried about small dents or bumps in the car
  • Individuals having cars that come with expensive car spare parts
Factors to Consider While Buying the Zero Depreciation Car Insurance Cover

Once you have bought your new car and are thinking of availing the zero-depreciation car insurance cover for your vehicle, here are some important points to consider:

  • This policy can be purchased by brand-new car owners as it is applicable to all the brand-new cars under the period of 3 years.
  • Premiums in this type of motor car insurance tend to be slightly more than the standard four-wheeler insurance policy. As such, it will not make any sense to pay more towards insuring cars that are above three years of age.
  • The number of claims in this insurance policy is also limited.

Zero depreciation cover offers you the peace of mind and ensures protection from future financial burdens in case of car accidents or road mishaps.

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