Cover With Zero Depreciation


Zero depreciation is an add-on insurance option that provides full coverage without considering your car’s declining worth. This implies that if your automobile or a specific component of it is destroyed in an event, then you will be reimbursed for the entire cost of the new components when you file a claim.

The deteriorated value of your automobile is used to determine the claim amount in a typical auto insurance policy. In contrast, there can be a complete claim settlement in case of zero depreciation.

This implies that you will obtain full coverage regardless of the components’ declining value. For new and premium automobiles with pricey spare components and whose cost of maintenance or replacement is often high, zero depreciation works effectively.

Choose this practical add-on if you are really careful about your automobile and wish to keep it clear of scratches and bumps. In the section below, we will dispel some of the myths surrounding zero depreciation and define what it truly is:

Let’s take a look at these myths.

Myth 1: Multiple Claims Can be Made

The number of times you may claim this plan throughout a policy period may be limited. Although twice is usually the maximum, it might change. The easiest way to learn the claim limitation under zero depreciation cover is to read the Policy Wordings before purchasing the coverage.

Myth 2: There is no Zero Depreciation Protection for Two-Wheelers

Both your vehicles and your motorcycles are eligible for the zero-depreciation rider. You can choose this add-on coverage when buying your bike or car insurance. If the claim is accepted, then you can profit from the zero-depreciation cover when making a two-wheeler or auto insurance claim.

Myth 3: Old Automobiles can be Purchased with Zero-Depreciation

Most insurers don’t let vehicles older than 5 years qualify for zero-depreciation add-on.

Myth 4: There are no Exclusions with Zero-Depreciation

There are several exceptions for the zero-depreciation insurance:

  • You can’t use the zero-depreciation cover if you don’t have a valid driver’s license.
  • Owners of vehicles older than five years cannot select the zero-depreciation add-on.
  • Engine breakdown, mechanical breakdown, and regular wear and tear aren’t covered under the zero-depreciation coverage.
  • Engine oil, coolant, clutch oil, etc. aren’t covered under zero-depreciation cover.

The Bottom Line

Zero-depreciation cover is one of the most important features you should consider when purchasing a bike or car insurance policy. Be sure to talk to your auto insurance provider about whether or not this type of coverage is right for you.

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