Zero-Dep Policy: A Must for Car Owners

Zero depreciation cover ensures that the insurer pays the full replacement cost of parts such as bumpers, headlamps, side mirrors, and plastic fittings.

Kindly note the image has been posted only for representational purposes. Photograph: Kind courtesy Moose Photos/Pexels.com

Many car owners assume that a comprehensive insurance policy will take care of all expenses in case of an accident.

In practice, however, insurers deduct the depreciated value of parts before settling claims.

This is where a zero-depreciation (zero-dep) cover makes a difference, ensuring minimal out-of-pocket costs.

You can post your insurance related questions HERE

What is zero-depreciation cover?

This cover ensures that the insurer pays the full replacement cost of parts such as bumpers, headlamps, side mirrors, and plastic fittings.

For example, without zero-dep cover, a damaged bumper worth Rs 10,000 may fetch only Rs 5,000 from the insurer after depreciation.

With the cover, the entire Rs 10,000 is reimbursed.

Points to note before buying

While zero-dep cover offers greater protection, it comes with certain conditions:

It is usually available for cars up to five years old (some insurers extend to seven years)
Most policies limit the number of zero dep claims per year
Premiums are higher, typically 10-20 per cent more than a standard policy
It does not cover routine wear and tear, engine damage, tyres, or batteries
Deductibles under the base policy still apply

You can post your insurance related questions HERE

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