Introduction

In the context of motor insurance, depreciation is often used to describe how an asset loses value over time because of things like aging, normal wear and tear, and obsolescence. In general, vehicles are depreciating assets. For instance, a new car will cost more than an old one. Like this, all the components that make up an automobile, such as glass, plastic, metal, etc., experience some degree of depreciation over time, and each of the components or materials depreciates at a different rate.

If your car is damaged in an accident, you might not be able to recover the entire expense incurred on the parts’ replacement. After the depreciation has been considered, only the replaced parts are covered by the general insurance carrier, and the insured individual is responsible for covering the difference between the new part’s market value and the car’s depreciated component.

Using Zero Depreciation for car insurance is a smart move as it enables you to maximize your claim reimbursement and make the most of your auto insurance coverage.

What is Zero Depreciation Car Insurance Cover?

A car insurance policy with zero depreciation coverage aids in defending your vehicle against all physical harm without taking depreciation into account. Even if a standard vehicle insurance policy protects you against losses incurred if your car is destroyed or stolen when you file for a claim settlement, the reimbursement is acquired after a customary depreciation discount.

On the other hand, you can get the whole compensation amount if you have car insurance with zero depreciation coverage. For brand-new cars, a Zero Depreciation add-on insurance is available, and it can also be selected at the time of policy renewal.

How is Zero Depreciation Car Insurance Premium calculated?

The following factors are considered while determining the premium-

•   Sum Insured or Insured’s Declared Value
•   Place of registration
•   Installation of accessories
•   Engine type
•   Vehicle age
•   Fuel type
•   Coverage type
•   Add-on covers

Benefits of a Zero Depreciation Insurance

•   It reduces out-of-pocket costs because depreciation costs are not considered while requesting a claim settlement.
•   Most of your claims involving insured parts are resolved without considering the depreciation value.
•   It increases the value of the standard auto insurance coverage and reduces your investment to nearly nothing.

Conclusion

In a Zero Depreciation Car Insurance policy, the automobile insurance company pays the total claim amount without taking the car’s worth into account. You must, of course, pay a little bit more for your premium. However, given that it removes the chance of any out-of-pocket costs for the owner, this add-on function is strongly advised to everyone.

About Us

At Mittal AutoZone, we thrive on delivering world-class facilities and state-of-the-art services for Maruti Suzuki Cars. Besides, we provide pickup and drop services at your doorsteps for your convenience, making us the best Maruti Suzuki Dealership in Guwahati by our esteemed customers.