How does zero depreciation in car insurance work?
When it comes to claim settlement, having a zero depreciation policy saves a lot of money. Even if your car is old, the depreciation rate with zero depreciation coverage is 0%. Here’s an example of what happens when your car insurance is with and without zero depreciation add-on.
Case 1: Car insurance without Zero Depreciation add-on
If your car gets damaged in an accident and your damaged bumper’s repairs are worth ₹5,000. Then, your claim amount (what we’ll pay for) will be ₹1500 after applying a standard deductible of ₹1000 and 50% depreciation on plastic parts. Thus, you’ll have to pay ₹3500 in this case from your pocket.
Case 2: Car insurance with Zero Depreciation add-on
If your car gets damaged in an accident and your damaged bumper’s repairs are worth ₹5,000. Then, your claim amount (what we’ll pay for) will come to ₹4000, and you will only need to pay ₹1000, which is a standard deductible applicable on all claims. An additional 50% deductible on plastic parts won’t apply to your claim.