Buying a new car would be a dream come true for many of us. Thus it becomes equally important to keep it safe too. Buying a car insurance policy is the first step that you can take in this direction. But how far will a simple car insurance policy keep your car safe in the event of an accident? Will a generic car insurance policy make sure that you get the most out of it?
Certain types of insurance policy will not provide you with much in return if your car gets damaged. For e.g. a third-party insurance policy will not provide you with anything in return if your car gets totalled. So what would be the ideal insurance policy that will ensure you are not completely robbed off the money you invested if something bad happens to your car? A zero depreciation car insurance. How will a zero depreciation car insurance help you? Read on to know more.
- Zero Depreciation insurance cover will ignore depreciation costs – Over the course of years, your vehicle would be subjected to wear and tear due to usage. These wears and tears would be deducted from your insurance claim amount as depreciation costs. Zero depreciation insurance policy will not take into consideration these depreciation costs.
- Most of the claim amount covered by the insurance company – If your car gets into an accident and is damaged beyond control, with a zero depreciation cover you will be able to get most of the Insured Declared Value (IDV). The depreciation costs on your vehicle will not be considered here. Only a few negligible excess charges will be deducted from your IDV. Thus you will get a higher claim amount. Without this policy, depreciation costs will be deducted from your IDV amount.
- Save money – With zero depreciation insurance policy, you will be getting a higher IDV amount. Otherwise, you will have to shell out money from your own pocket to get your car repaired or to buy a new car.
- Better coverage – Unlike the other car insurance policies, a zero depreciation car insurance will cover damage to car paint, rubber and plastic parts, batteries, tyres and so on. This gives better coverage to your car.
- The best option for new cars – If you have just bought a new car, it is always best to opt for Zero Depreciation insurance policy. Since you have invested a good amount in buying a new car, investing a little extra in this insurance policy will ensure that you will not have to spend more money in the future. A little care now will go a long way in the future.
- Amateur and experienced drivers can opt for this – For amateur drivers who have a higher risk of causing accidents, this insurance policy would be the best option to take. This will ensure you get the most out of your insurance claims. Experiences drivers too will find this useful as it gives a peace of mind in case your car is accidentally damaged.
- The best option for luxury car owners -Luxury cars costs higher than an average car and hence it becomes all the more important to protect it. In the event of an accident, the cost of repair would be enormously high. Your insurance amount must be high enough to cover for it. If depreciation factors are considered then you will be left with next to nothing. So it’s important to get this policy if you are a luxury car owner.
- Car owners who ride through high-risk areas – Drivers who have daily routes through highways and other such high-risk areas would benefit highly from this insurance policy. With the chances of accidents being higher, better protection is the best way to mitigate them. This way you will not be financially depleted.
- Owners whose cars have expensive spare parts – If you own a car whose spare parts are hard to come by, the cost of repairs too would be extremely high. Along with the repair costs, you will also be spending on import charges. This will bump up the repair costs higher. On top of that, if the depreciation costs on the car are considered, you will be spending more money than you initially invested in the car. Zero depreciation policy will be a good option to prevent this scenario.
- Peace of mind – Since you will not be spending too much money from your own hand you will have more control over your finances, giving you peace of mind. You can invest the money that would otherwise go into repairing the vehicle.