Zero depreciation cover ensures that the insurer pays the full replacement cost of parts such as bumpers, headlamps, side mirrors, and plastic fittings.
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.
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:
Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this article to influence the opinion or behaviour of the investors/recipients.
Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.
Feature Presentation: Ashish Narsale/Rediff