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Zero Depreciation car Insurance

What Is Zero Depreciation Insurance and Is It Worth Your Money?

21st November 2018 5min read 6862 views

Any offer that screams "Flat", "Free" or "Zero" catches the eye instantly, doesn’t it? This is mainly because the discounts or offers attached, seem more relaxed and budget-friendly. Moreover, they help the seller in building a strong customer base – making it a win-win situation!

So, when Mr. Hassan Raj saw an ad in the newspaper that read “Save up to 60% with Zero Depreciation on Your Car” he immediately reached out to the insurance company for a quick telephonic conversation:


Question: What is zero depreciation?

Answer: Zero depreciation is an add-on cover that offers complete coverage without factoring in the deprecating value of your vehicle. This means, if your car or any particular part of it gets damaged in an accident, you will receive the full value of replaced auto parts when you apply for a claim.


Question: How does it add value to my standard insurance policy?

Answer: In a standard car insurance policy, the claim amount is calculated on the depreciated value of your car. Whereas, in zero depreciation, there is a full claim settlement. This means that you will receive full coverage on the car parts – irrespective of its depreciating value.

Zero depreciation works well for new and luxury cars, which have expensive spare parts – and whose cost of repair or replacement is generally high.


Question: Should I buy zero depreciation cover?

Answer: If you have a new car, or if you are planning to buy one, then it is advisable to go for this cover as it will help you maintain the original value of your car for a longer period of time. Also, in case of an accident, the expenses incurred on the vehicle will be looked after by the insurance provider.

If you are extremely particular about your car, and like to keep it free of dents and bumps, then you must definitely consider this handy add-on.

But, before you opt for zero depreciation, here are a few things you should know:

(Cost) The premium paid in a zero depreciation policyis comparatively higher. This is because you receive full coverage on your vehicle without factoring depreciation.

(Number of Claims) Some people reach out to their insurance company for the smallest of dents and scratches. Therefore, there is a limited number of claims set by the company. Before you purchase this cover, ensure that the company offers you a reasonable number of claims.

(Available for New Cars) This cover is available only for new cars. Honestly, would you even want to pay a higher premium on a car that is more than three years old?

Well, before buying his first new car, Mr. Hassan Raj made the right decision to call the insurance company and find out everything about zero depreciation.

Mr. Hassan Raj is smart. Be like Mr. Hassan Raj.

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