One of the many add-on covers that come with car insurance policy is the Zero depreciation cover. In the event of an accident, this Zero depreciation cover ensures that you get a full reimbursement of the damaged parts of your vehicle without any depreciation or deduction.
Apart from the most obvious reason stated above, here are 4 reasons why your car should have Zero depreciation cover-
1. Zero depreciation cover is best suited for a new car model. Since the value of the parts of a recently launched or new car is higher than those of an old one, insurance companies offer zero depreciation cover to the policyholder. Usually, policyholders with old cares are not offered such an add-on cover because of the depreciation in value of the parts of the car.
2. In case of an accident, a car insurance policy will offer a claim amount based on the current value of your vehicle, i.e. after depreciation. Whereas, zero depreciation cover ensures that you get a full reimbursement on the claim amount irrespective of your car’s current value.
3. Under the zero depreciation cover, the cost of repairing is fully borne by the insurer. You need not pay any amount out of your own pocket. On the other hand, the cost of repairing the damaged parts of the vehicle rests partially on the insured if you do not opt for the zero depreciation cover.
The points mentioned above explains why zero depreciation cover is important in car insurance. It is highly recommended that you choose an additional zero depreciation cover if your car is brand new. This will protect your vehicle from probable damages and threats. Talk to your car insurance provider about the advantages of zero depreciation cover. Do not forget to go through the fine print of your car insurance policy.