Blog #34 - All About Zero Depreciation Insurance - Finance With Atul


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Friday, April 1, 2022

Blog #34 - All About Zero Depreciation Insurance


Zero Depreciation Insurance


A zero depreciation add-on cover, also as called Nil Depreciation and Bumper-to-Bumper cover, is a well known vehicle insurance add-on cover which is generally figured by vehicle proprietors alongside their comprehensive car insurance policy. It moves the obligation of bearing the deterioration/depreciation of your vehicle and its parts from you to the insurance agency against an ostensible charge. Sometimes even a solitary case assists you with recuperating the whole zero depreciation cover's top notch sum.



A zero depreciation add-on covers all accessories of your vehicle at 100 percent with the exception of tires, tubes and batteries which are covered at half. Usually insurance agency permit 2 zero depreciation claims during the incumbency period, nonetheless, there are a few guarantors like IFFCO Tokio who permit you to make a limitless number of zero devaluation claims during the tenure of your vehicle insurance contract.



Who should opt for Zero Depreciation Insurance?


1. New Car Owners - New vehicle proprietors who have bought another vehicle ought to select this cover as depreciation begins since the vehicle is sold.


2. Individuals who have Luxury Cars that have Expensive Parts - If you own an extravagance vehicle and it gets injured because of a mishap, it clears that you should spend a tremendous sum on its maintenance. Subsequently, a total measure of guarantee can assist you with getting your vehicle fixed without any problem.


3. Individuals Living in Accident-Prone Areas - People who dwell in clumsy regions are bound to get enjoyed mishaps. Subsequently, to get a pertinent measure of guarantee to get their vehicles fixed they ought to pick the zero-depreciation cover.


4. New Drivers - People who have quite recently started to drive a vehicle or another driver could invest in some opportunity to turn into a specialist and are bound to engage in a crash. Thus, this extra cover is an absolute necessity for such individuals. 


5. Standard Car Users - Since mishaps can bring any measure of harm, thus, it may not be simple for even old vehicle proprietors to bear the expense of fix. Consequently, assuming that your vehicle is qualified to be covered with the zero dep plan, you ought to select it.



Comprehensive Car Insurance Cover

Low premium amount

Low claim settlement amount due to depreciation estimated for all parts of the car.

50% depreciation is considered on all repairing parts.

The depreciation of the car increases with the passing age of the car.
Benefit of Zero Depreciation Insurance


Zero Depreciation Car Insurance Cover

High premium amount

High claim settlement amount since estimation of depreciation is not done.

Zero depreciation add-on insurance provides cover for all the repairing costs.

Due to the add-on of zero depreciation, the depreciation will be considered as nil.


What things are not covered in Zero Depreciation?

Driving without a Driver’s License

Cars More Than 5 Years Old

Driving Under the Influence of Alcohol

Doesn’t Cover Compulsory Deductible

Doesn’t Cover Mechanical Breakdowns

Cost of Engine Oil




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