Understanding Zero Dep Car Insurance Benefits
Car insurance is a policy or an agreement between you and any insurance company, protecting you partly or wholly against any financial loss that may arise due to the occurrence of car damage or theft. There are many kinds of car insurance policies today that provide you with comprehensive coverage against an array of things, including accidents, thefts, vandalism, damages, floods, and other calamities that may strike.
However, ask anyone experienced in the field of automobile insurance, and they would say that zero dep car insurance is definitely more beneficial than any other comprehensive car insurance policy out there. The reason? Simply because, when your vehicle is under zero dep insurance, you as an insured, do not have to pay any sort of damage or depreciation costs. You will be eligible to receive the claim amount in full.
Also called the ‘nil depreciation’ car insurance, it is an add-on coverage you can avail at the time of insurance purchase for your new car or renewal. Please bear in mind that the zero dep coverage is only valid for new cars for up to 5 years.
Who can take this insurance policy up? This policy is best if you are a new driver, a luxury car owner, someone who frequents accident-prone and congested areas, and if you generally want to get the maximum benefits out of a car insurance policy for your new car.
In this blog, we will discuss in detail the various benefits a zero dep car insurance will bring to the table. Let’s get started!
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Benefits Of A Zero Dep Car Insurance
As mentioned earlier, if your car’s age is under 5 years, you are eligible to opt for a zero dep insurance. And since this is an add-on to your car insurance, the premium amount might be higher than that of comprehensive car insurance plans. However, it covers total damage cost along with zero depreciation charges. One of the primary reasons why a zero dep car insurance is the best and the most advisable is that you will not be expected to shell out any money at the time of claim. This is as opposed to other vehicle insurance policies.
The following are the benefits of opting for zero dep insurance for your car:
1. The settlement comes in full
This is one of the major benefits of a zero dep car insurance policy. This is why this policy holds the upper hand when it comes to insurance policies for young cars. If your car faces any kind of damage, you will get the claim amount in full without any deductions. This is why the zero dep policy is also popularly known as bumper-to-bumper coverage.
2. Zero money goes out of your pocket
In the two times that you can avail of this insurance claim, you will never need to contribute (even partly) to the damages incurred. This is what happens in other car insurance policies – while the insurance company will settle a major part of the insurance sum, you will also have to incur a part of the charges. When it comes to a zero dep policy, there is no financial loss at your end. You will receive a full settlement from the insurance company.
3. The premium is higher but definitely affordable
In the case of a zero dep coverage for your car, the premium you will pay is higher compared to what you will shell out in other comprehensive car insurance policies. This is justified considering that you will be eligible to receive your claim in full in case the insured vehicle faces damages.
4. Beneficial for new drivers and luxury car owners
If you are just buying a car, and an expensive one at that, consider getting this insurance coverage. The zero dep car insurance is valid for cars for up to their first 5 years. And what is even better, you ask? As a nil-depreciation insurance holder, you can claim your insurance twice during the tenure of your zero dep policy! So, if you are a new driver and your car is relatively new and also a luxury vehicle, a zero dep add-on is what you need with your car insurance!
These are a few benefits of opting for the zero dep car insurance policy. If you are looking for the best company for your car insurance tie-up, look no further than Chola MS! We are a leading insurance company in India and offer a wide range of health, motor, travel, and housing insurance policies.
The Chola car insurance is one of the best motor insurance policies from the house of Chola MS and is widely preferred by car owners across the country. Our insurance policies are known to be highly economical, with a wide range of options, and the Chola car insurance is no exception. Our goal is to maximise benefits for customers while also providing them with hassle-free insurance application, renewal, and management processes.
For more details, browse through or get in touch with us through the Chola MS website.