In India currently there are limited number of auto insurance policies that can be availed of. Third Party, Comprehensive and Zero Depreciation auto insurance policies are currently on offer from several companies.
Zero Depreciation auto insurance is a common choice among several new vehicle buyers in India. Today we list out a few things that are not covered by Zero Depreciation policies.
Most parts and even a few components are taken care of by Zero Depreciation auto insurance. There are, however, a few clauses as always that you need to be aware of while opting for this policy.
Vehicle Damage & Claim Frequency!
First and foremost, premiums are high for Zero Depreciation auto insurance. Vehicle damage is carried out to almost 100 percent by insurance companies. This does not mean they will take care of every single repair or frequent damage. A fixed amount of claims can be covered in a single term.
Mechanical Breakdown, Wear & Tear!
Mechanical breakdown, along with wear and tear of certain parts like tyre and brake pads are not covered under Zero Depreciation. Any damage caused due to either of the two, also cannot be claimed under Zero Depreciation auto insurance.
Most insurance companies will also not take accessories under Zero Depreciation auto insurance. Things like tyres, wipers, engine mounts and even batteries cannot be claimed for. Some companies provide individual insurance for things like audio accessories and other accessories within the vehicle.
Commercial vehicle owners cannot opt for Zero Depreciation auto insurance as it is restricted to only privately owned vehicles. The vehicle should either be new or less than five years old.
If the policy lapses or crosses the threshold of five years vehicle owners cannot opt for Zero Depreciation auto insurance. Individuals can choose Comprehensive insurance or even Third Party at their own discretion.