Many people are not well aware with the importance of zero depreciation cover while buying auto insurance. It is really helpful for you as a customer to get ideas about the insurance terminologies. The asset value when decreases because of use, it means depreciation. In auto insurance, this policy implies that insured get compensation without any deduction for depreciation on any replacement of auto parts arising due to accident.
In a standard auto policy, depreciation rate is ranging between zero to 50 percent based on how old the vehicle is as well as on the material. Hence, it may create a financial burden. To avoid such situation, it is good to opt for this cover as it charges no depreciation. Policyholder will get 100 percent re-imbursement on depreciated / replaced parts can be availed leading to optimum advantage under the plan.
Due to its unique features, you get various benefits like all plastic, fibre, metal and rubber parts are insured without applying depreciation. This cover mostly applies to new cars and it excludes the cars which are more than three years old. As compared to standard car insurance, the premium of this policy is slightly higher.
Many insurance firms put a restriction on the number of claims which can be opted without depreciation during a period of policy. At an extra premium amount, a zero depreciation cover can be bought. Generally, it is selected for top and mid-segment luxurious cars as most buyers select an improved cover to gain maximum advantages. The benefit of availing Zero Depreciation Cover implies that customer get his/her moneys worth.
To understand the nuances of this cover and to choose the exact product which fulfills your requirements and suits your budget, always feel free to seek advice from insurance professionals. These details provided by these experts offers you important comparative analysis of the cover plans which are available in the market with the best quotes. It takes extra coverage of car body parts whether it is made up of rubber, fibre, metal or plastic. The premium due to added risk cover is also high in tune of 18 percent -20 percent over regular comprehensive car insurance.
In auto sector, this cover is a value added product and in case of claim settlement, there is no depreciation to be needed to pay on replacement of batteries, plastic & rubber etc. Hence, in simple words, it makes the auto owner risk free and keeps him or her away from tension for any serious repairs carried out without any substantial part going out from his pocket. For premium amount, you can check it on the internet by using the car insurance calculator which is also available online. In India, this cover seems to be gaining popularity with raising awareness amidst car owners. In 2009, the whole scenario completely changed. Some general insurance firms selling car insurance policies introduced add-on covers that would provide maximum value additions over the basic advantages. Most add-on covers provide daily allowance, a host of other advantages, lost key replacement and no claim bonus protection.