< Back

Motor

What is Zero Depreciation Cover

For most people, their car is one of their most-valued assets. While a comprehensive insurance policy will look after bumps, dents, scratches, and even medical expenses you might incur due to an accident, most policies will not cover you for regular wear and tear of car parts. But, what exactly does this mean?

 

Let’s say you bought insurance for a new car. For every year since then, you’ve renewed your policy on time, and you’ve never made a claim. However, in the 4th year, you meet with an accident and there’s quite a bit of damage done to your car. When you put in a claim request, your insurance provider will use a formula to understand how much is payable to you. Part of this formula will factor in the depreciation that has taken place since you bought the car, 4 years ago. While your claim will get settled, you may end up having to spend a little extra out of your pocket to pay for a new part.

 

Thankfully, there is a way you can avoid those hefty out-of-pocket expenses. By opting for zero depreciation cover from your insurance provider, you can safeguard yourself against the part of the formula that factors in depreciation. If you choose to get this additional cover, your insurance provider will cover the entire cost of repairing your car after an accident.

 

What Exactly Does it Cover?

 

If you opt for this policy, you can rest assured that you will get 100% cover for your car’s metal, fibre and rubber parts. It is important to keep in mind that in a mechanical breakdown, engine damage due to an oil leak or water ingression, and oil change are not covered under these policies. There is also a limit on the number of claims you can make per year.

 

Who Benefits?

 

It’s important to remember that zero depreciation insurance is more beneficial to some people over others. If you’re one of the following people, you should definitely think about investing in this additional cover:

  • You have a new car

  • You have a luxury car

  • You’re a new or inexperienced driver

  • You live in an accident-prone area

  • Your car’s spare parts tend to be really expensive

How Much Will It Cost?

 

Zero depreciation car insurance could cost anywhere between 15%-20% more than your regular car insurance policy. But, if you’ve got a car that is less than 5 years old, it’s definitely worth the extra money.

 

If you choose to add the zero depreciation rider to your regular car insurance policy, you could end up saving yourself a lot of money in the long run. Despite a higher premium, the eventual benefits are definitely worth the increased cost. So, if you’re looking for a policy that offers comprehensive cover with zero depreciation, click here.

Get In Touch - Kotak General Insurance

Select product
Select
Services
Select

Call back

RELATED ARTICLES

Car Insurance Benefits

Motor

Benefits of car insurance

A car insurance can help you offset substantial financial loss that you may incur because of damage caused to your car

Add-on covers for Car Insurance

Motor

Must have Add On Covers for Car Insurance

A basic comprehensive car insurance covers damage to car, 3rd party liability and theft & loss of vehicle.

Car insurance

Motor

Right time to buy vehicle insurance

Buying a vehicle insurance is an important decision and you need to ensure that you make a timely purchase of vehicle insurance

know-how-car-insurance-premium-is-calculatedcde

Motor

Know How Car Insurance Premium Is Calculated

Car insurance premium calculation is based on various important factors. Learn about these factors.

rules-to-follow-for-safe-driving-th

Motor

Rules to follow for safe driving

Know About The Important Road Safety Rules To Follow

 

 

significance-of-a-motor-vehicle-insurance-policy

Motor

Significance of a motor vehicle insurance policy

Apart from financial security, know in what all ways a motor insurance policy is significant.

maintenance-tips-for-car-engine

Motor

Maintenance tips for car engine

Follow these maintenance tips and buy a car insurance with engine protection cover to keep engine secure.

Monsoon Tips Car

Motor

Monsoon Tips for Car

Simple tips to help you stay safe and keep your car moving ahead during monsoon.

Questions Regarding Motor Insurance Policies

Motor

Questions Regarding Motor Insurance Policies

Essential questions answered about motor insurance policies in India.

Online Motor Insurance Policy Benefits

Motor

Online Motor Insurance Policy Benefits

Know about the benefits of buying motor insurance online.


To optimise our site experience on your handheld device, please hold your phone vertically.