Zero Depreciation Car Insurance Basics

When someone bumps into your costly car; well, it is no less than a nightmare. Don't bother! Always choose the best car insurance to secure your car. As you meet a car accident and come to know that your insurance covers only part of the costs incurred to substitute pricey damaged parts it can be extremely frustrating. Well, this happens because the rest is eaten up by depreciation. To keep away from such a situation, a Zero Depreciation Cover is recommended. Now, before you pay for a Zero Depreciation car insurance it is important for you to understand how it differs from a standard car insurance policy.

What does a standard car insurance policy offer?

Car insurance generally covers the expenses that one might need to shell out if a car is damaged or stolen. Well, keep in mind there’s a catch. Once a car is damaged, you are not allowed to 100 percent reimbursement of the cost you need to put up with on the parts replaced. As per rule only the residual value, of the part after subtracting depreciation, is paid for by the insurance company.

Now, the important thing that would come in your mind is what is the Zero Depreciation Cover and how can that be advantageous.

Zero Depreciation Cover: What does it mean?

When you go for a car insurance with zero depreciation cover it protects your car against all physical damages caused to the vehicle without factoring in the constituents of the depreciation. In case of a standard car insurance policy it covers you against losses after a standard deduction of depreciation; while on the other hand, car insurance ​with zero depreciation can bring back you the total reimbursement.

If you go for a zero depreciation policy for your car insurance, the full claim amount is compensated by the Car Insurance Company not including the depreciation on the value of the car. Evidently, you have to shell out somewhat more in terms of your premium; nevertheless this add-on feature is exceedingly suggested to everyone considering the fact that it reduces the possibility of any out-of-pocket outflow from the owner.

Benefits with a zero depreciation add-on cover:

• No out-of-pocket expenses as the depreciation fee is not taken into consideration while filing a claim settlement
• It puts in more value to the basic car insurance coverage, making your investment roughly zero
• Most of your claims regarding the insured parts are settled without taking the depreciation amount into consideration.

Factors to Consider before Opting for Zero Depreciation Cover

• Take the age of your car into consideration. The car insurance zero depreciation policy is relevant to cars under the age limit of 3 years. This means only new cars are entitled for zero depreciation car insurance.
• Zero depreciation car insurance will be to some extent more costly in terms of premium as compared to a regular car insurance policy
• If you own a luxury car or live in a high-risk area, you are advised to go for zero depreciation cover add-on.

In a nutshell, a zero depreciation policy premium depends on three factors:

1. Age of the car
2. Model of the car
3. Your location

When should buy Zero Depreciation Cover?

To guard your brand new car from any unexpected events, it is sensible to opt for a zero depreciation cover. Buying a zero depreciation car insurance is helpful for those:

• With new cars
• If you have a luxury car
• Inexperienced drivers
• If you are living in accident-prone areas
• If you are concerned about small dents
• If you have a car with costly spare parts

You may simply use the online car insurance premium calculator to gauge the premium of your car.

Looking for a complete peace of mind? Now that you have a fair understanding of Zero Depreciation Cover, you are expected to be able to make an informed decision. If you go for a Zero Depreciation Cover for your four-wheeler from any of the major insurers offering this cover, you can actually save yourself from a lot of hassles. Go for a nil-depreciation cover by paying a little extra premium. If you want to relax at the time when a claim arises; consider paying some extra bucks. You only need to pay a nominal service fee; rest of the amount is paid by the insurance company. Get the right insurance cover and enjoy driving!