Similar to other commodities, your car is also subjected to depreciation; this can be because of various reasons such as wear and tear, upgradation of the model, technological advancements, etc. Under Zero-dep insurance policy, the person gets total coverage without considering the depreciating value of the vehicle.

The depreciation liability falls in the kitty of the vehicle owner if not opted for this kind of policy. So, at the time of claim settlement, the claim is considered on the depreciated value of the car which eventually lowers the insured declared value. In case of zero-dep insurance, the depreciating factor is not considered and the claimant can get coverage for the total insured amount. But zero-depreciation motor insurance comes at a higher premium.

It is also known as Nil Depreciation and Bumper-to-Bumper cover. It is an add-on cover that the vehicle owner can take along with the comprehensive insurance coverage. With this insurance policy, the burden of bearing the depreciation cost of your car shifts from you to the insurance provider. All you need to do is to pay a little extra premium.

This policy usually covers all parts of your car except tyres, batteries, and tubes; these are covered at 50%, while the other parts of the car have 100% coverage. Most of the insurance providers provide 2 zero depreciation claims during the tenure of the policy.

New Car Owners – If you have newly purchased the car, then you must choose this policy because the value of the car starts to depreciate the moment it is sold, and if there is any damage to the car, then you may not get the actual amount without this claim.

Luxury Cars-Luxury cars have expensive components, and if there is any damage to the car, you will end up spending a huge amount getting them repaired, but with this insurance coverage, you will have complete coverage of the damaged parts.

People Living in Accident-Prone Areas – If you are residing in an area that is accident-prone, it is important for you to get this policy.

New Drivers – Those who have newly learned how to drive should be a little more cautious while driving. Also, there is a probability of new learners getting involved in a collision that can damage your car. To save yourself from the repair cost, zero-depreciation insurance coverage is a good choice.