After purchasing a vehicle, the value of your car will slowly decrease over time. This steady depreciation may hinder potential insurance claim processes. One way to avoid this trouble is a Zero Depreciation Car Insurance that offers coverage as an add-on to the standard car insurance policy. It provides comprehensive coverage without taking into account depreciation. This means if you have Zero Depreciation Car Insurance coverage, you will receive full reimbursement for the price of replacing or fixing any damaged car parts, without considering depreciation.
How Zero Depreciation Car Insurance Policy Benefits You?
Let’s take a look at the benefits of zero-dep car insurance.
- Zero Depreciation Car Insurance covers the entire cost of replacing or repairing your car’s damaged car parts without the deduction of depreciation. This can be beneficial in the car's early years when the depreciation rate is at its highest. If you do not have Zero Depreciation Car Insurance, the insurance company will offer you the replacement cost based on the car’s depreciated value when you make a claim. This also protects your vehicle’s resale value, ensuring potential benefits in the future.
- Zero Depreciation Car Insurance protects you from out-of-pocket expenses during accidents. Since the insurance company will pay you a higher depreciation cover, you won't have to spend your money to meet the expense of the damaged or repaired parts. With this cover, your car expenses are significantly reduced.
- By opting for Zero Depreciation Car Insurance, you’ll have the peace of mind of knowing that depreciation won’t reduce your claim. This add-on can help you save lots of money in the long term.
- The Zero Depreciation cover adds more value to your basic car insurance policy, making your investment fruitful. The premium amount may increase if you opt for this add-on coverage, but zero-dep insurance benefits make it worth buying. When equipped with this insurance alongside your standard car insurance policy, you are protected against a more comprehensive range of risks.
- The policyholder will not be required to pay any unexpected or previously undeclared costs when making a claim. All expenses are covered by the insurance provider.
- As there is no need to factor in the depreciated value of the damaged parts during a claim, the claim process is relatively hassle-free and fast, benefitting customers greatly.
Conclusion
Zero depreciation car insurance provides better coverage than standard car insurance. This can be beneficial to protect your investment. You can avoid excessive out-of-pocket expenses by opting for Zero Depreciation Insurance coverage along with your standard car insurance policy.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.