Zero depreciation cover, also called bumper to bumper insurance, is a type of car insurance where the depreciation factor is left out from the coverage, hence offering complete cover. Meaning, if your car is damaged following a crash, the car insurance company does not pay the depreciation amount of the replaced or damaged parts of the vehicle. The policyholder can claim the entire amount.
The zero-Dep car insurance policy provides one hundred per cent coverage for all rubber, metal parts and fibre without depreciation deduction. However, the zero-dep does not cover engine damage due to oil leakage or water ingression, and oil change, consumables, and mechanical breakdown are also excluded from the coverage.
Zero depreciation premium is a bit higher than standard premium; however, it is a MUST HAVE for all relatively new (up to 5 years) or new vehicles.
This policy is beneficial to:
- People who own luxury cars
- People who bought a new car
- Inexperienced/new divers
- Individuals who live in accident-prone areas
- People who worry about minor dents and bumps
Key Benefits of Zero-Dep Car Insurance Policy or Depreciation Waiver
You must have been confused between zero depreciation car insurance and standard cover, right?
Well, the former has fantastic benefits, which will offer you peace of mind every time you’re behind the wheel.
Here is a rundown of the key reasons that make zero depreciation cover a must-have:
- Economical and Offers Better Savings in the Long Run: You must be thinking that we are contradicting our statement above. Well, even with a higher premium, zero depreciation cover aids in cutting down out-of-pocket expenses to, well, almost zero. And this happens without deducting the depreciation on different parts of the c; this is why it is also known as a nil-depreciation policy.
- Enhanced Coverage: A zero-dep add-on cover is not only valuable for amateur drivers but experienced drivers as well. This type of cover provides an additional safety net to the insured from financial catastrophe arising from losses or damages to the car in an accident.
- Better Compensation: The claim limit received by the policyholder is determined by the Insured Declared Value (IDV) of the policy. The depreciation rate directly affects this. Therefore, with zero depreciation cover, you can file claims that do not consider the rate of depreciation of the vehicle and get a higher claim amount.
- Peace of Mind: When you know that your prized possession is entirely financially secured against any damage, including depreciation, you have peace of mind regarding your driving confidante. This could be attained by buying a zero depreciation car insurance policy.
Wrapping it up!
You must have realised the practical benefits of having a zero depreciation insurance policy by now. Hence, before narrowing down with the best zero-dep car insurance policy for you, make sure you check and compare on renewbuy.com. Moreover, remember to renew your policy every year to avail all the benefits.