Ever since the Motor Vehicles Act made it mandatory for car owners to have a motor insurance policy, Insurers have provided a diverse range of motor insurance products that protect the insured from the financial jolt that follows in cases of accidental repairs. Zero-depreciation is one such add on cover that offers comprehensive coverage.
With the rise in road accidents and increased sales of luxury or sports cars, choosing an insurance policy that offers comprehensive coverage is recommended. Zero depreciation add-on cover in car insurance ensures complete coverage, negating the impact of depreciation.
Depreciation is the devaluation in the value of an asset due to natural wear and tear, usage and obsolescence. Apart from the engine and the moving parts, other parts of a vehicle are also prone to depreciation – such as plastic and metal. Based on the car’s age, the accumulation of depreciation ranges from 5% during 0 to six months to 50% for vehicles above 10 years of age.
When an accident occurs, insurers pay for replacement of parts impacted due to the accident after deducting the depreciation. In such cases, the insured needs to pay for the difference between the value of the new part and the depreciated value. However, if one has a zero-depreciation add-on cover, which can be availed at a nominal premium, the insured can receive the entire amount of damaged parts without considering the amount of depreciation.
“Car insurance is not an expense but as an investment. Higher the investment, the greater the rewards that one can benefit from. At Raheja QBE GI, customer satisfaction has always been our priority and we believe in delivering a superior customer experience. Zero depreciation is one such add-on cover which ensures complete coverage, negating the impact of depreciation hence, choosing such cover is highly recommended” adds Mr. Pankaj Arora, MD and CEO, Raheja QBE General Insurance.
An extensive Zero depreciation add-on cover offers many benefits, some of which are enhanced coverage, reduced expenses for the insured and peace of mind. These factors liberate the insured from worrying about costly repairs while enjoying the ownership of their car.
Zero depreciation add-on cover can be added to your existing car insurance policy and can also be chosen when buying a new insurance policy.