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Difference between Comprehensive and Zero Depreciation Insurance
Comprehensive Insurance + Zero Depreciation = 100% Satisfaction
Zero Depreciation is an ‘Add on’ cover, in other words, an added benefit that can be bought with Comprehensive Insurance. Basically, Zero Depreciation is part of Comprehensive Motor Insurance😊! Let’s explain the whole thing in detail to give you a better understanding. First let’s tell you a bit about Comprehensive Insurance, shall we😊!
What is Comprehensive Insurance?
Comprehensive Insurance is a ‘premium insurance’ policy for motor vehicles, both cars and bikes. And as the name suggests, it’s the ‘complete package’ that covers any damage to the vehicle, it’s occupants and the ‘third party’, in case of any mishap. By and large, Comprehensive Insurance covers:
Now, here’s where Zero Depreciation makes a grand entry 😊!
Since Comprehensive Insurance is a premium motor insurance policy, you have the option to choose from various ‘Add on’ covers or ‘Benefits’. These covers can be availed at a slight premium over the basic insurance policy cost. There are plenty of ‘Add on’ covers such as roadside assistance, engine protection cover, consumable cover etc. So, basically Zero Depreciation is one of the ‘Add on’ covers that you can choose among a platter of mouth-watering added insurance benefits for your vehicle!
Difference between Comprehensive policy vs Zero dep Insurance policy
|
Comprehensive policy with Zero Dep cover |
Comprehensive policy without Zero dep cover |
|
| Premium amount |
Slightly higher than a normal comprehensive policy |
Lower than a policy with the Zero Dep addon |
| Claim settlement amount |
Higher as depreciation is not considered |
Lower as depreciation is considered for all body parts that need to be repaired |
| Repairing of Plastic parts |
With the Zero Dep addon, no depreciation is considered for such parts |
50% depreciation on such parts are considered before paying the claim |
| Age of the covered car |
With Zero Dep addon, the depreciation rates are considered as nil |
With age, the depreciation of your car keeps increasing and will not be covered in the claim |
So, a Comprehensive policy without a Zero-Depreciation is ideal if your car is brand new or you think you are going to buy a new one very soon. And a Comprehensive policy with a Zero-Depreciation add on is ideal if you do not want any bummers at the time of claims, and don’t want to spend a penny from your pocket in case of an emergency.
Benefit of taking Zero Depreciation Cover
Age comes with its drawbacks. The same applies to your vehicle. The older it gets, the more the value of your car or bike drops or ‘depreciates’. But, not to fret, this ‘Add on’ ensures that the value of your vehicle will remain as valuable as the day you bought it!
Zero Depreciation is also known as Nil Depreciation or Bumper to Bumper cover that leaves out the ‘depreciation’ factor from the coverage. It basically means that if your car or bike gets damaged following a collision, no depreciation is subtracted from the coverage of wear and tear of any body parts of your vehicle. The insurance company will offer you 100% of the entire cost (of course, minus the deductibles😊) of the body part which has to be repaired or replaced.
So, as we see we cannot really compare comprehensive insurance vs zero depreciation, as zero depreciation is only an add-on that can be taken with comprehensive cover, however the former includes everything required to protect your car.
Rest assured with Zero Depreciation your beloved vehicle will always remain 100% as good as new😊!Related articles - Third party liability car insurance | Difference between comprehensive and third party insurance | Types of car insurance in India | Types of motor insurance in India