Here’s a look at the cost breakdown:
Insurance Type
|
Approx Annual Premium
|
Standard Comprehensive Policy
|
₹18,000
|
With Zero Dep Add-On
|
₹22,000
|
Why is zero dep insurance so important for city drivers?
Now that you understand the nil depreciation meaning, you will know why exactly it is such an important component of motor insurance. If you need further clarification, here’s a detailed lowdown:
1. Traffic congestion increases the accident risk
When you buy car insurance online, you look to get assurance that your insurer will pay the claim amount in the event of an accident. However, you also pledge to drive safely and avoid accidents. Sadly, a mishap can take place even when you are very careful and cautious, as traffic congestion increases the risk of road accidents. This is why you need a zero depreciation cover, with which you can keep your vehicle and your finances well-protected.
2. Modern car parts are expensive
Modern vehicles, and all their spare parts, are very expensive. Whether you need to replace a mirror or fix a dent on the bonnet, you will have to shell out a large amount of money. When you get zero depreciation, you get car insurance online, you save yourself a lot of trouble, as you get the full value of the spare parts at the time of a claim.
3. Parking damage is very common in urban areas
Sadly, parking damage is more common than you think in India. Even if you are a careful driver and avoid getting into car accidents, you may have to send your vehicle to the garage. Cars frequently get bumped, scratched and dented when parked on the roadside. This is another reason why city drivers benefit from zero depreciation motor insurance.
4. Small repairs add up over time
Many people assume that car insurance is useful only for major accidents. In reality, city drivers face repeated minor damage throughout the year. A mirror replacement here, a bumper repaint there, a windshield crack next month. Individually, these may not seem huge. But together, they can become a major yearly expense. And for every repair, a part of the amount is deducted, based on the depreciation value. If you wish to get protected against this, speak to your car insurance company about zero depreciation!
Read More: Difference Between Comprehensive and Zero Depreciation Insurance
What should I check before getting zero depreciation car insurance?
While zero depreciation car insurance is very handy, you must keep a checklist with you before you opt for it. In the checklist, you must:
1. Check for the number of permissible claims per year
Every car insurance company has a different set of clauses when it comes to zero depreciation coverage. You need to check with your insurer to see how many claims are permissible per year under the zero depreciation add-on cover.
2. Vehicle age eligibility
Usually, cars that are under 5 years of age are eligible for zero depreciation coverage. Hence, if you have an older vehicle, you may not qualify for this. Check the terms and conditions very carefully, speak to your insurance provider and then proceed with getting the cover.
3. Included and excluded parts
Read the policy wording carefully to understand what is covered and what is excluded under a zero dep cover. You may find that some important parts of the car are not included. If this happens, you may consider porting your car insurance plan to a better insurance provider, such as Generali Central, for better and more comprehensive coverage.
4. Claim settlement process
You need to understand the claim process before you sign on the dotted line. Unless the zero depreciation claim clauses are suitable, do not commit. You should get an overall car insurance cover that works for you, so ensure the claim process is smooth and convenient.
5. Pricing
While a beneficial add-on like the zero depreciation rider is always valuable, you need to keep an eye on the price of the policy. If the add-on is too expensive and exceeds your budget, reconsider it. Otherwise, look at the other add-ons and shuffle them so that you have the correct mix of riders for optimal protection.
Read More: Top Myths About Standalone Own Damage Car Insurance Busted
The final word
You zero dep car insurance. This is why you must surely consider getting it when you buy a car insurance policy. You can also get it at the time of renewal. Zero depreciation is one of the best motor insurance add-on covers, as it helps you to keep your money protected, without having to compromise on the health of your vehicle. Most of the leading Indian insurance companies, like Generali Central, offer this add-on cover. Review your motor insurance needs and see where you can fit in this rider, if you have not done so already.
Expert Note
This information is based on standard motor insurance guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI) and commonly followed industry practices. Policy coverage and conditions may vary by insurer.
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