Zero Depreciation Car Insurance Explained

Introduction

If you own a car, then it is essential for you to buy car insurance. In the case of damage or loss of a vehicle due to an accident, theft, or any other natural or man-made calamities, a car insurance policy will come in handy, especially when it comes to providing you with financial coverage for the loss or damage.

Simply put, a car insurance policy is nothing but an agreement between the car owner and the insurance company that the latter will provide financial assistance for any loss or damage incurred by the car. Car insurance policies offer you protection - in part or whole - in the case of loss or damage to the vehicle. There are several types of car insurance policies available today, including add-ons, but one policy add-on stands out. It is the ‘zero dep car insurance policy’.

Usually, it is mandatory for you to get a third-party insurance policy when you buy a car, post which you can choose to buy the zero dep car insurance policy as an add-on! So, what is the zero dep policy all about? In the case of other insurance policies, you will lose some money as the insurance company will not pay you for the vehicle’s depreciation costs. This is where the zero dep policy scores! With this policy, you do not have to shell out money from your pockets! The insurance company will cover all costs, including depreciation charges.

In this blog, we will discuss in detail about the zero dep car insurance policy. So, read on!

Explained: Zero Dep Car Insurance

If you are a new car owner or one with a car that is not more than 5 years old, then you must go for the zero dep car insurance plan. As discussed earlier, the zero dep insurance plan covers the vehicle’s depreciation charges too. However, this insurance plan is available only for new car owners with vehicles that are 5 years old or under. Also called the nil-depreciation insurance policy, this is one of the best add-ons you can choose for your car, especially if it is a newly bought vehicle. Let us learn a little more about the policy -

Full coverage: With the zero dep car insurance policy, you do not have to spend any extra money you would otherwise be giving out of your pockets in the case of other insurance policies. Apart from the premium you would pay for the plan, the zero dep car insurance policy will cover all expenses at the time of damage or loss of vehicle through natural and man-made calamities.

Beneficial for new cars: This policy is the most advantageous for owners with a new car. Once you get the zero dep car insurance plan for your car, it is valid only for up to 5 years. Therefore, it is best if you buy the zero dep policy while purchasing your car. New and luxury cars can benefit the most from this policy as usually repair costs for damages incurred by luxury cars tend to be more expensive. With the nil-depreciation policy, you can get complete coverage for damages or loss.

Value addition: Buying the zero dep car insurance add-on for your vehicle is a great value addition to your already existing car insurance policy. True to its name, with depreciation charges also covered in this insurance policy, your investment at the end of the day will be almost zero.

Full settlement of claim: The fact that you will not be charged for depreciation under this policy means you will not lose any money and receive the claim in full. This is one of the biggest highlights of the zero dep car insurance add-on policy. In the case of damage or loss of your car, you will not bear any dent in your savings. The insurance company will bear the cost of repairs and depreciation in full.

Higher, but affordable premiums: If you are buying a zero dep insurance plan for your car, then you will have to pay a higher premium amount. However, this is completely justified considering you will get a full settlement without a dent in your bank balance at the time of the accident, theft, or loss of your car.

If you are a car owner with a car that is not older than 3 years, it is advisable to also buy a zero dep car insurance policy. With this policy, the risk of financial loss is completely eradicated, thanks to the full settlement you will receive upon damage or loss of your vehicle.

If you are looking for an insurance company to get the best deal on your zero dep insurance plan, then Chola MS is your go-to company. Chola MS car insurance is one of the leading insurance companies in the country that offers zero dep car insurance plans at competitive premium prices. With a low waiting period on claims and tie-ups with top mechanics and garages, the Chola MS insurance policies offer you the best possible coverage for damage or loss of your vehicles.

For more details on the different Chola MS general insurance plans available, visit the Chola MS website.