Car Insurance Policy<\/strong><\/a>. This\nadd-on is not available for a car older than five years. <\/p>\n\n\n\nThe add-on is highly recommended as it eliminates\nthe depreciation element and saves any possible out-of-pocket expenses from the\nowner in case of any car mishap. <\/p>\n\n\n\n
How is depreciation calculated?<\/strong><\/p>\n\n\n\nThe Insurance Regulatory and Development\nAuthority of India has laid down the rules, basis which the cumulative\ndepreciation of a car is calculated. The depreciation rates for various car\ncomponents are as follows:<\/p>\n\n\n\n
- The depreciation rates for car batteries and rubber, nylon and plastic\nparts are at 50%.<\/li>
- Fiberglass components depreciate at 30%<\/li>
- Wooden parts depreciate by 5% in the first year; 10% in the second\nyear and so on. <\/li><\/ul>\n\n\n\n
Benefits of zero depreciation cover <\/strong><\/p>\n\n\n\nThere are several benefits attached to purchasing\na zero-depreciation add-on cover for your car. Few of them are:<\/p>\n\n\n\n
- Saves money- <\/strong>The biggest advantage of this add-on cover is that it helps limit your\nout-of-pocket expenses at the time of a claim since the element of depreciation\nis ruled out. You are not required to shell out money just because your car had\ngot old. <\/li>
- Procure a higher claim amount- <\/strong>You inevitably receive a higher claim amount with\nthis add-on cover that nears the actual cost of purchase and repair. This saves\nyou from what might have been a huge financial burden despite being the car\ninsurance providing adequate cover. <\/li>
- Adds value to your base policy \u2013<\/strong>With zero depreciation cover, you get the\nreimbursement based on the value that you paid. Hence, your investment gets\nalmost nil. Evidently, it adds plenty of value to your base policy. <\/li>
- Peace of mind \u2013 <\/strong>Zero depreciation cover gives you the ultimate peace of mind as you\nknow that your back is truly covered at all times. You know that you will get\nyour actual investment reimbursed at the time of a claim and this can be truly\nsatisfying and soothing to your mental health. <\/li><\/ul>\n\n\n\n
Things not covered under the zero-depreciation\ncover<\/strong><\/p>\n\n\n\nLike any insurance cover, the zero-depreciation\ncover has its exclusions. Few of them are:<\/p>\n\n\n\n
- No valid driving license- <\/strong>If you do not have any valid driving license;\nthen you cannot claim the benefits of zero depreciation cover at the time of\nfiling a claim. <\/li>
- Influence of drugs or alcohol- <\/strong>At the time of the car accident, if you were\nunder the influence of any drug or alcohol; then your claim would not be upheld\nand would get rejected. <\/li>
- Car is over 5 years old \u2013 <\/strong>As already stated, the zero-depreciation cover is\nnot available for cars over five years old. Hence, even if you had this cover\nwhen you purchased a new car; it will be removed from your car insurance policy\nafter five years. <\/li>
- Compulsory deductibles not covered- <\/strong>Compulsory deductible is an important part of the\ncar insurance plan. It is the mandatory amount that you must pay at the time of\nmaking a claim. This amount is not covered by the zero-depreciation add-on and\nmust be paid every time you make a claim. <\/li>
- Mechanical breakdowns and engine oil costs not covered- <\/strong>The normal wear and\ntear, any mechanical breakdowns and cost of various fluids like engine oil,\ncoolant, clutch oil, etc. are not covered under the plan. <\/li><\/ul>\n\n\n\n
Cost of zero depreciation add-on cover<\/strong><\/p>\n\n\n\nThe zero-depreciation add-on cover is available\nwith a comprehensive car insurance policy and costs fifteen percent of the\npremium of your base policy. The amount is quite nominal given the huge savings\nand benefits that it brings you. <\/p>\n\n\n\n
Bottom line <\/strong><\/p>\n\n\n\nNo matter what is the make and model of your car,\ngetting a zero-depreciation cover makes your car insurance plan worthwhile and\nensures that you get the full worth of your investment. <\/p>\n","protected":false},"excerpt":{"rendered":"
Anybody dealing with car insurance is bound to come across the term, \u2018depreciation\u2019 in regards to their car insurance policy. In simple terms, it refers to the loss of value of the car or other accessories over time due to various factors like age, general wear and tear, obsolescence, etc. It is a no-brainer that […]<\/p>\n","protected":false},"author":2,"featured_media":439,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[143],"tags":[],"_links":{"self":[{"href":"https:\/\/www.instantclickmoney.com\/wp-json\/wp\/v2\/posts\/438"}],"collection":[{"href":"https:\/\/www.instantclickmoney.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.instantclickmoney.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.instantclickmoney.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.instantclickmoney.com\/wp-json\/wp\/v2\/comments?post=438"}],"version-history":[{"count":1,"href":"https:\/\/www.instantclickmoney.com\/wp-json\/wp\/v2\/posts\/438\/revisions"}],"predecessor-version":[{"id":440,"href":"https:\/\/www.instantclickmoney.com\/wp-json\/wp\/v2\/posts\/438\/revisions\/440"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.instantclickmoney.com\/wp-json\/wp\/v2\/media\/439"}],"wp:attachment":[{"href":"https:\/\/www.instantclickmoney.com\/wp-json\/wp\/v2\/media?parent=438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.instantclickmoney.com\/wp-json\/wp\/v2\/categories?post=438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.instantclickmoney.com\/wp-json\/wp\/v2\/tags?post=438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}