Your car is subjected to depreciation because of various reasons such as wear and tear, upgradation of the model etc.
Under Zero-depreciation insurance policy, person gets total coverage without considering depreciating value of vehicle.
It is an add-on cover that vehicle owner can take along with comprehensive insurance.
Burden of bearing depreciation cost of your car shifts from you to insurance provider.
1 ) New Car Owners :- If you have newly purchased car, then you must choose this policy because value of car depreciate the moment it is sold.
2 ) Luxury cars :- Luxury cars have expensive components, and if there is any damage to car, you will end up spending huge amount.
3 ) People Living in Accident-Prone Areas :- If you are residing in an area that is accident-prone, it is important to get this policy.
4 ) New Drivers :- There is probability of new learners getting involved in collision that can damage your car. To save yourself from repair cost, zero-depreciation coverage is good choice.