Know all about Comprehensive insurance with and without Zero Depreciation Cover | SupportBiz


Know all about Comprehensive insurance with and without Zero Depreciation Cover

A comprehensive car insurance policy is one of the best insurance protection for your car

It offers security and protection for your own vehicle also along with the third-party cover. On the other hand, a zero depreciation cover provides comprehensive coverage without factoring for depreciation, ensuring full settlement for insurance. This cover protects you from depreciation charged due to normal wear and tear which otherwise affects the claim settlement. Let's know more about Zero depreciation cover (with comprehensive cover) and Comprehensive insurance cover.

Comprehensive insurance

Comprehensive car insurance is a step ahead of the basic Third-party car insurance policy and provides coverage and security for your vehicle. It provides extensive coverage. A comprehensive insurance policy covers the damage and loss to your car caused by accident, fire, theft, vandalism, falling objects, etc. and this also comes with an inbuilt third-party insurance.

The benefits of Comprehensive Car Insurance

●  It allows you to purchase add-on covers

●  Includes third-party liability cover

● It covers damages caused to your own car, unlike third party insurance which provides coverage only for the third party.

Zero depreciation car insurance cover

As the term implies, zero depreciation cover provides comprehensive insurance which does not consider depreciation on the car. This policy is also known as bumper to bumper cover. For example, if you file a claim of car damage following a collision, the insurer will cover the entire cost of the insurance claim, not include depreciation.

Zero depreciation coverage car insurance policies do not cover the engine damage due to oil leakage or water ingression. Any mechanical breakdown, consumables or oil change is also not covered in this policy and this also comes with limit on the number of policies to be claimed.

What benefits you get with zero depreciation car insurance cover?

Zero depreciation cover curbs out of pocket expenses since depreciation cost is not taken into account while settling the claim. Most of the claims of the insured parts are settled without taking their depreciation into account, which adds more value to the coverage.

Factors to consider before buying Zero depreciation cover:

· Number of claims:  Since, this insurance covers the entire claim, the insurer limits the number of the claims that can be raised under this policy. It is done to discourage the policyholders from filing a claim even for small and petty dents.

·  Cost: Since depreciation is not counted, it charges a slightly higher premium than a comprehensive insurance plan.

·  Only for relatively new cars: Zero depreciation car insurance cover is available only for relatively new cars. If seen from a customer point of view, it is not cost effective to pay a higher premium on a car older than 5 years.

Comprehensive insurance with Zero depreciation cover and without zero depreciation cover

Comprehensive insurance with Zero depreciation is one of the most popular policies among car owners where the entire cost is taken care of under the policy.

· The premium for Comprehensive insurance cover with zero depreciation might cost more than the premium of the usual policy, but it provides extensive coverage of losses.

· It excludes the depreciation amount within the partial loss claim.

· Major benefit of Comprehensive cover with Zero depreciation is that the insurer foots the entire amount against the claim for repair even for certain parts of the car.

On the other hand, a comprehensive insurance cover without zero depreciation cover considers the current value of your car after depreciation.

· The premium for a Comprehensive insurance without Zero depreciation, the amount of premium is relatively lower.

· It is beneficial for those who want affordable insurance cover insurance.

Both the policies have their own benefits and disadvantages, but the selection of the policy entirely depends on the need of the car owner.