What is Zero Depreciation Insurance?
Insuring your car?, What is Zero Depreciation Insurance?, What is the difference with comprehensive insurance?
Car Insurance: Insurance Protects Against Financial Loss in Case Of Any Accident. While Taking Car insurance Make Sure That You Get A Full Claim. Many People Do Not Know That There Are Two Types of This Insurance. These Include Comprehensive Insurance And Zero Depreciation Insurance. Must Know About Zero Depreciation In This. A Must-know Especially For New Car Buyers. Now Let Us Know What Is The Difference Between These Two.
Car Insurance: While Buying A Car, Insurance Is Mandatory. However, it Includes Two Types Of Insurance. One is Comprehensive Insurance and the other is Zero Depreciation Insurance. There Is A Huge Difference Between The Two. You Must Be Aware Of Both While Insuring Your Car. This Zero Depreciation Car Insurance Is Different When Compared To Comprehensive Insurance Cover. Here We See How It Works. In Comprehensive Insurance Cover Insurance Companies Pay The Claim Amount After Assessing The Current Value Of The Vehicle. Depreciation Plays A Major Role Here. The insurance Company Is Likely To Pay Only 75 Percent of This Claim.
Also Read – 5 Things to Check Before Buying a Second Hand Car
What is Zero Depreciation Policy?
A Zero Depreciation Policy Will Cover The Full Amount Of The Loss. There is No Depreciation On The Value Of The Parts In Respect Of The Vehicle. Get Full Claim Amount. However, The Premium Amount In Zero Depreciation Policy Is 20-25 Percent Higher Than Normal Standard Cover. A Zero Depreciation Policy Covers The Loss In Full. All Other Parts Of The Vehicle Except Tires And Batteries Get A Full Claim.
If There is Rs.35,000 Under The Standard Cover, The Zero Depreciation Policy Will Have An Additional Rs.7,000- Rs.8000 More. Most Insurance Companies Limit 2-4 Claims Per Year. Because They Are Not Allowed To Claim Even For Minor Scratches And Dents On The Vehicle.
For Example, Suppose A Person Named Mahesh Has Taken Comprehensive Insurance For His Car. If His Car Is Completely Damaged In A Road Accident While Traveling in A Car.. To Repair About Rs. Suppose The Showroom People Say That It Will Cost Up To 2 Lakhs. Then If Mahesh Goes To The Insurance Company Thinking That He Wants To Make An Insurance Claim. Only Rs. Insurance Companies Agree To Pay Only 1.25 Lakhs. Insurance Company Under Depreciation Rs. 50,000 Will Be Deducted. Mahesh Has To Pay The Remaining Amount.
Alao Read – Renting Out Your Personal Car? If You Do That, You Will Suffer A Huge Loss
Is Zero Depreciation Insurance For All Cars?
It is Advisable To Take Zero Depreciation Insurance When Buying A New Car. However, Paying A High Premium For An Old Car Is Not A Good Idea. Companies Offer This Facility Only For Cars Less Than 4 Or 5 Years Old. This Passi is Perfect For High-end, Mid-segment Car Owners. The Claim Amount Can Be Substantial in Case Of Damage To Expensive Cars. For Medium Cars, The Premium in this Insurance Policy is Rs.2000-Rs.2500 Only.
