Let’s tell you everything you need to know about Zero Depreciation cover on your Car Insurance policy.
Why choose a Zero Depreciation cover?
A Zero Depreciation cover would save you a considerable sum of money in a claim settlement. It’s that simple.
Zero Depreciation? What’s that?
A Zero Depreciation cover added to your Car Insurance policy provides you with comprehensive coverage without taking into account, the depreciation in the value of the spare parts of your vehicle.
Let’s say your car suffers damage in a collision; you can claim the full cost of repairs as compensation from the insurance provider.
A car with Zero Depreciation cover or normal cover – what’s the difference?
- If your vehicle has Zero Depreciation cover, you can get a full claim settlement. Depreciation in the value of spare parts will not make a difference to you.
- The claim amount for a normal car cover will depend on the present value of your car including depreciation.
Additional Reading: Why Car Insurance Claims Are Rejected
Insurance premium amount
- For a car with Zero Depreciation cover included in the policy, the insurance premium payable by you will be high.
- For a normal cover Car Insurance policy, your insurance premium will be lower in comparison to a policy with Zero Depreciation cover included. Check out this link to calculate your Car Insurance premium.
Cost of repairs
- If a vehicle owner has Zero Depreciation cover included in the Car Insurance policy, in the event that the car needs repairs, the costs are managed by the insurance provider.
- In a normal Car Insurance policy, the cost of repairs has to be paid by the owner.
Age of the vehicle
- A Zero Depreciation cover is offered to policyholders who have new cars.
- A normal Car Insurance cover provides the vehicle owner the option to purchase a Zero Depreciation cover for a vehicle that is not more than 4 years old.
What to consider before choosing a Zero Depreciation Cover with a Car Insurance policy
Let’s tell you what factors you must consider before choosing a Zero Depreciation cover with your Car Insurance policy.
You must remember that a Car Insurance policy with Zero Depreciation cover included will cost more than a policy without this add-on. This is because any repairs on your vehicle are covered by the insurer without deduction of depreciation charges on claims.
- Number of claims allowed
Insurers generally set a limit on the number of claims permitted in every policy year. This ensures that a policyholder does not file a claim for every small damage. You should check with your Car Insurance provider about the number of claims allowed within a policy year.
Now that you know the benefits of a Zero Depreciation cover with your Car Insurance policy, have you got this useful add-on?
Additional Reading: Car Insurance Terms You Must Know
Need more advice?