Looking at 4 FAQS on Zero Depreciation Car Insurance

1. Looking at 4 FAQS on Zero Depreciation Car Insurance

2. Depreciation refers to the decline in the value of the car as it ages and undergoes gradual wear and tear. Usually, when you file a claim under your car insurance policy, the insurer will consider this depreciation value and then deduct it from the claim amount. However, with zero depreciation car insurance, you get the full reimbursement of your claim without consideration of the depreciation.Even though it remains quite popular, many people have several unanswered questions regarding this useful cover, especially if they are buying car insurance for the first time.

3. 1. . How does zero-depreciation generally work? If your car suffers any damages due to an accident, natural calamity, fire, and so on, the zero depreciation car insurance makes you eligible to receive compensation for the damaged parts without any regard to their depreciation value. Without a zero depreciation add-on, you will incur a depreciation value that could go high depending on the damaged part and age of your car.  

4. If you are raising a claim on a car that is 4 -5 years old, the depreciation will be calculated at 35%. Adding this to your out-of-pocket expenses can put a big dent in your wallet. Thus, zero dep car insurance helps increase your overall savings and ensures that you get the full disbursement. That is why this add-on is also called a depreciation waiver or a nil depreciation add-on sometimes. 

5. 2. Does zero depreciation car insurance require expensive premiums? • No, that is not the case. Even though it that can cut down your depreciation value during the claim process to nil, it is surprisingly affordable. Usually, the additional premium would amount to around 20% of the standard car insurance policy. 

6. 3. What are the exclusions of a zero depreciation car insurance policy? The exclusions will likely differ from insurer to insurer. However, a zero dep car insurance may not cover the following - - Cars that are over 10 years old - Consumables such as nuts, bolts, oils, and tyres and tubes - Damage due to mechanical breakdowns - Accessories/equipment that have been fitted additionally  - Total loss or theft of the car 

7. 4. Who should ideally purchase a zero depreciation car insurance policy? A zero depreciation car insurance policy can be helpful to many drivers but for some, it is absolutely essential. New drivers should ideally opt for this kind of policy as they may be prone to accidents and therefore would raise a claim repeatedly. A zero dep car insurance can help them cut down on their out-of-pocket expenses when such situation arises.  

8. Owners of luxury or expensive cars may also want to consider this type of policy, as the value of the parts of such cars is also expensive. To cover up the gap between the depreciated value of those parts and the actual value when it comes to raising a claim, the zero dep insurance is useful. • Do bear in mind that the features of zero depreciation car insurance policies may differ across insurers. It is advisable to contact a professional before going further. 

9. Hope this has been helpful good luck and all the best!

10. To Read More on • Zero Dep Car Insurance • Or • You Can Visit • https://www.iffcotokio.co.in/motor-insurance/car-insurance/everything-you-need-to-know-about-zero-depreciation-car-insurance Thank You…