Zero Depreciation Auto Insurance; Do You Need It Or Not?

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An individual purchases his or her own vehicle after a lot of hard work, with some of them putting down their life savings to own their own transportation.

Accidents do not give notice before occurring since they happen all of a sudden. To cope with this unwanted pressure insurance companies have devised brilliant Auto Insurance policies.

In India, as of now, there are two auto insurance policies available to vehicle owners. The first is Third Party Auto Insurance and second is Comprehensive Auto Insurance.

Also Read: 7 Types Of Auto Insurance: Which One Suits You The Best?

Insurance companies are now offering Zero Depreciation on Comprehensive Auto Insurance. It is mostly applicable to new vehicle owners and is available for both two-wheelers and four-wheelers.

With Zero Depreciation Insurance, the company provides entire amount to repair damages caused. It does not factor depreciation of parts and offers complete all-round vehicle protection from accidents.

Also Read: Types Of Auto Insurance Currently Offered In India

Should You Or Should You Not Have Zero Depreciation Cover:

Q. Which vehicles are applicable for Zero Depreciation Insurance?
A. It is best if new vehicle owners opt for Zero Depreciation, as it provides safety from damages without owner spending any extra money on damages. However, both new and experienced owners can opt for it.

Also Read: 5 Things That You Need To Know About Auto Insurance

Q. Premium amount for Zero Depreciation Insurance?
A. The premium is slightly higher than even Comprehensive Auto Insurance. Most new vehicles have the option of choosing Zero Depreciation, you can choose against it as well. It does not make sense to purchase this policy for older vehicles as their value and premium amount would not be viable.

Q. Number of claims that can be made under Zero Depreciation policy?
A. The amount of times an individual can claim for damages is limited and varies between insurance companies. It is best if small damages are taken care of by the owner or else they would lose their No Claim Bonus as well. You need to check with Insurance company how many claims can be filed in a year, before opting for one, and some even offer cashless options.

Also Read: Ghat Road Driving Tips This Monsoon

Q. So should you or should you not opt for Zero Depreciation Auto Insurance?
A. We strongly suggest that if you can afford the investment will surely be worthwhile. Technically, if your vehicle is damaged you will be at an advantage with Zero Depreciation as only a minimum amount of money will be pulled out of your wallet. In case of Comprehensive Auto Insurance, the owner would have to pay for parts that are not included in the policy.

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Story first published: Tuesday, July 14, 2015, 16:48 [IST]
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