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What are the Benefits of Zero Depreciation Car Insurance?

Buying a car is one of the most important and special milestones in anyone’s life. It holds a lot of sentimental value for most of us, next to our homes. While it is an expensive investment, it does not exactly fetch you a great deal when you choose to sell it. It is a well-known fact that the value of a car depreciates the moment it leaves the showroom. As the car ages, it depreciates further due to the regular wear and tears, the condition of the engine, dents, repairs suffered, etc. Further, other parts like glass, plastic, metal, etc., have a higher value of depreciation, due to any damages suffered in case of an accident. Read further to know more about the zero-depreciation car insurance and its benefits.

What is a Zero Depreciation Car Insurance Cover?

Zero depreciation car insurance, as the name suggests, nullifies the depreciation costs of your car, when you file for a claim. Generally, when you file for a claim, the claim settlement is done after factoring in the depreciation costs. This cover protects your car against any damages and losses caused and incurred without taking the depreciation costs into consideration. In addition to this, the cover also helps you receive the entire compensation amount when you file for a claim.
While anyone with a comprehensive car insurance policy can avail of a zero-depreciation cover, the benefits of the same will be sweeter when you purchase it for a brand-new car, instead of a used car. Though the cover might add to the overall costs and the premium of your policy, it almost eliminates the possibility of any expenditure for the policyholder. The cover restricts the policyholders from making any number of claims to avoid claims for trivial issues.

What are the Benefits of Zero Depreciation Car Insurance?

Every add-on you buy along with your comprehensive car insurance adds value to your insurance policy. Listed below are some of the benefits of zero depreciation car insurance.
● Since the depreciation cost of the car is eliminated, it fetches you a lot more money when you file for a claim.
● When a car suffers damage due to an accident that needs repair or replacement, most of the parts that are covered under the add-on are settled with no depreciation cost.
● It enhances your car insurance policy by adding more value to it while saving you a lot of money.

Who Should Buy the Zero Depreciation Car Insurance Cover?

In addition to the above-mentioned benefits, the zero-depreciation car insurance cover can help you derive the maximum benefits of your policy without having to bear any costs. While the policy is only available for cars below 3 years of age, it is best to make the most of it during the golden years of the car. The cover is best-suited for anybody with a luxury or sports car, and for people living in a high-risk or accident-prone area.