It’s a known fact that car is a depreciating assent. With every passing year, the value of your car depreciates. And due to this depreciation factor, you would not receive the total cost of the damages caused to your car. This is when having a zero depreciation cover can help by negating the value of depreciation. A zero dep cover can be bought with comprehensive car insurance policy and is also known as bumper to bumper or nil deprecation cover.
Read below in detail about everything that you need to know about enhancing your cars coverage with a zero depreciation cover.
In simple terms, depreciation means that value of your car decrease each year. Rate of depreciation for each part of the car is different, taking away a huge chunk of your claim amount.
Deprecation of a car is calculated on a yearly basis and changes with every passing year. The below charts explains the rate of depreciation calculated from the year you buy the car.
In case you file a claim with a comprehensive cover, your insurer would reimburse only the depreciated value of the car parts, which can turn out to be really expensive, if you have a brand-new car.
Benefits of Zero Depreciation Car Insurance
Note: Few insurance companies have a limitation on the number of claims you can make under zero depreciation cover. Always check the policy wordings
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