When is Zero Depreciation car insurance relevant | Chola MS

When is Zero Depreciation car insurance relevant?

Zero depreciation, also known as Nil depreciation or bumper insurance, is a type of auto insurance that completely covers you by excluding the depreciation factor from the coverage. This means that, if your automobile sustains damage as a result of a collision, no depreciation will be deducted from the coverage of wear and tear on any car body elements, except tyres and batteries. Insurance providers will cover the full replacement cost of the lost body part.

All fibre, rubber, and metal parts are completely covered by zero depreciation auto insurance policies, with no deductions for wear and tear. It does not cover damage to the engine from water or oil leaks. This coverage does not cover any consumables, oil changes, or mechanical breakdowns.

Zero depreciation is a must-purchase for all new or relatively new (up to five years) cars, costing ranging from 15-20% of the usual premium.

Benefits of Car Insurance with Zero Depreciation

  • Contrary to popular assumption, Zero Depreciation for car insurance is necessary to cover even experienced drivers from the financial burden of damages and losses sustained as a result of accidents.
  • Increases the basic car insurance coverage while lowering your costs roughly in half.
  • Controls costs associated with the insured car’s depreciation according to the current market value.
  • Repair or replacement costs for insured parts are covered without taking into account their depreciation value.

Who should opt for zero depreciation car insurance

  • People who drive new automobiles
  • Luxury vehicle owners
  • Inexperienced or new drivers
  • People who reside in places prone to accidents
  • If little scratches and dents concern you
  • If your vehicle has pricey replacement parts

What makes a comprehensive policy with zero depreciation add-on protection preferable to one without it?

Without a doubt, comprehensive coverage is a fantastic approach to safeguard your vehicle from every potential harm. You will still be responsible for covering the depreciation of your car’s parts during claims, though.

What is not covered in the Zero Depreciation Add-on Cover?

  • Should the car insurance policy be void
  • If it is impossible to inspect the damage
  • claim filed 30 days or more after the loss or damage
  • If a claim is not covered under the policy’s “Own Damage” section, the add-on will not consider it.
  • Depreciation that applies to particular components
  • If the loss is covered by a different policy, then the claim cannot be resolved.
  • Costs associated with fixing damaged items that are not permitted under the policy

If you want to save some cash on your car insurance policy, then you should consider zero depreciation coverage. This type of coverage allows you to lower your premium costs by reducing the value of your vehicle. Check out options by Chola MS that give you this benefit. 

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