A zero depreciation car insurance policy benefit you during claims

More than a million cars are sold in India every year; the credit goes to the car makers and retailers who have been successful in attracting people into buying cars. In due course of time, the way of buying and selling of cars has changed drastically. From buying cars with cash payments to applying for pre-approved loans. Every year, retailers come up with new schemes and plans to rope in maximum customers and recently they came up with a new type of car insurance called “Zero Depreciation Insurance”.

What is Zero Depreciation Insurance?

A Zero Depreciation insurance is an insurance cover in which the company is liable to provide reimbursementwithout considering the depreciation cost of the car. To put it in simple terms, if your car meets with an accident and you file a claim; irrespective of the age of the car, the insurancecompany,will pay the entire cost of the damage.

How does it benefit?

There is a vast difference between the traditional and a zero depreciation policy which makes it more beneficial for car buyers. Here are top 4 ways how a zero depreciation insurance can benefit you.

  1. Claim settlement:Earlier people had to go through the long claim procedure and in the end had to face disappointment; because they had to pay around 20-30 percent of the damage amount. Whereas, in Zero depreciation policy the insurance company covers the damage charges while the owner does not have to pay a single penny for the repairs.
  2. Cost of repairs: Traditional car insurancepolicies used to have a certain percentage which differed according to the material of the damaged part. For, eg. If the metal damage costsINR 9000, the standard insurance company pays 30 to 50 percent of the total amount. On the other hand, in zero depreciation the company pays for the entire damage.
  3. Age of the car:As the car gets old traditional insurance stop entertaining insurance related queries and the claim amount reduces significantly. Zero depreciation policy offers cover for 5 years while keeping the claim amount constant throughout.
  4. Terms and conditions:Earlier car buyers bought insurance just because it is a mandatory document which one should carry while driving to assure ownership. They did not expect anything from it as insurance companies had stringent conditions for claim settlement and majority of people could not meet their conditions which resulted in no claim settlement. Thanks to the new age insurance companies, now a person can claim insurance without the haggle of terms and conditions.

Zero Depreciation is ideal for almost everyone especially

the people who live near accident-prone

areas as it covers everything that ranges from breakage to the smallest of dents and scratches.

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