How Can Zero Depreciation Cover Be Beneficial During Claims?

But with a separate Zero Depreciation Cover, you can be assured that your car is safe from bumper to bumper. In a Zero Depreciation Cover, you will be fully compensated for the damage sustained by your car. So, even if your general car insurance offers limited coverage due to depreciation of your car, your Zero Depreciation Car Insurance Cover will offer full protection.

Read more : 5 Types of Car Insurance Coverage Explained

A Zero Depreciation Cover is also known as bumper-to-bumper or NIL depreciation insurance cover. This type of insurance cover offers you complete, end-to-end protection for your car by excluding depreciation. So, in case your car meets with an accident, then the motor car insurance policy will pay for the entire expense involved in the replacement or repair of your car without deducting any depreciation.

Unlike standard car insurance, a Zero Depreciation Cover will cover car parts like rubber, fibre, metal body parts at their original value without depreciation. However, this insurance does not provide for the engine damage (because of oil leakage or water ingression), mechanical breakdown, oil change, consumables, car batteries and tires. You can buy this cover at the time of policy purchase or renewal to complement your car insurance plan and improve its coverage

The insurance companies use the below calculation criterion as defined by the IRDAI (Insurance Regulatory and Development Authority of India) to calculate the rate of depreciation.

• 50% depreciation on rubber, nylon, plastic parts and batteries

• 30% depreciation on fibreglass components

• 5% depreciation in the first year and 10% depreciation in the second year on wooden parts of the car.

Depreciation is the reduction in a car’s value over time due to wear and tear. In standard car insurance, this depreciation is deducted from the claim amount, meaning you pay a portion of the repair costs out of pocket. This can significantly impact your financial burden, especially for high-end vehicles or expensive spare parts.

However, with zero depreciation car insurance, the insurer covers the full cost of repairs without considering depreciation. This ensures that you receive the maximum reimbursement, making it a preferred choice for many car owners.

A Zero Depreciation Cover is highly beneficial because of the following reasons:

- Saves money: In a standard insurance plan, the depreciation of the parts of the car has to be borne by you. The insurance company pays your claim after subtracting depreciation. However, with a Zero Depreciation Cover, you save that money because you get end-to-end protection. This means you do not have to shell out any money from your pocket.

- A higher claim amount: When you buy a Zero Depreciation Cover, the insurance company excludes the depreciation on the car and gives you a full claim amount. This means that you get a higher sum on your claim as compared to standard motor car insurance.

- Peace of mind: Having a Zero Depreciation Cover gives you the peace of mind that the insurance company will have your back in case of an unfortunate happening like an accident or damage. You get complete coverage for your damages and do not have to pay anything from your pocket.

- Read more: It is a Good Deal To Buy Zero Depreciation Insurance

This cover is ideal for:

• Luxury car owners or people with car models that have expensive or rarely available spare parts.

• People who live in accident-prone areas.

• Inexperienced drivers or someone who has invested in a new car.

• People who constantly worry about dents and bumps on their car and wish to keep it in pristine condition.

Trust TATA AIG car insurance to provide you with enhanced coverage for your car. With the Zero Depreciation Cover, you can be assured that all your damages will be paid, and you would be financially relieved even in the most stressful times. You can buy car insurance online or renew car insurance and get the Zero Depreciation add-on easily.

A Zero Depreciation Cover from a trusted insurance company like TATA AIG car insurance is a sound investment for your car. Get your car insurance premiums and make an informed decision.

While zero depreciation vehicle insurance covers most repair costs, there are some exclusions:

• Regular wear and tear of tires and batteries.

• Mechanical breakdowns or engine failure.

• Accidents due to drunk driving or illegal activities.

• Damage due to natural disasters (unless covered separately).

• Always check your policy details to understand specific exclusions.

Read more: Comprehensive v/s Zero Depreciation: Understanding the Difference

What is the benefit of zero depreciation car insurance?

Zero depreciation car insurance ensures that the full repair cost is covered without depreciation deductions. This means you receive the entire claim amount for your vehicle’s repairs, making it a smart choice for protecting expensive parts.

Why does zero depreciation insurance make sense?

With zero depreciation vehicle insurance, your insurer covers the full repair cost, eliminating out-of-pocket expenses due to depreciation. This makes it highly beneficial, especially for new or high-end cars.

Should I buy zero depreciation motor car insurance?

If you own a luxury or new car, or if you drive in accident-prone areas, buying zero depreciation car insurance benefits you by ensuring complete coverage. It prevents you from bearing high repair costs, making it a cost-effective decision.

How many times can zero depreciation insurance be claimed?

The number of claims under zero depreciation vehicle insurance varies by insurer. Most policies allow up to two claims per policy year, but some premium plans may offer unlimited claims. Always check with your insurer for specific limits.