What Happens to Zero Depreciation Car Insurance Cover After Five Years in India
Zero Depreciation Car Insurance
cover is a popular type of car insurance policy in India. It offers
comprehensive coverage for damages to the car without taking into account the
depreciation of its value over time. The policy provides coverage for repairs
or replacement of car parts without any deductions for depreciation, ensuring
that car owners get the full value of their car's parts in case of damages.
However, many car owners wonder
what happens to their zero-depreciation car insurance cover
after 5 years. Does the policy still provide the same coverage, or does it
change in any way? Let's explore this in more detail.
Zero depreciation car insurance
cover is typically available for new cars for a period of 5 years from the date
of purchase. After this period, the insurance company may offer a different
type of policy that includes depreciation. This means that if you have a zero
depreciation car insurance policy that is older than 5 years, you may
need to switch to a new policy that includes depreciation.
Benefits of zero depreciation cover
Apart from being advantageous on
the finances, zero depreciation cover carries more benefits with your car
insurance like;
·
Increase in the claim amount
·
Wear and tear factor eliminated in settlement
·
Affordable Add-on cover
·
Coverage for all cars below five years of age
·
Covers for all repair costs except total loss
and consumables cost
·
Peace of mind
In conclusion, if you have a zero
depreciation car insurance policy, it is important to understand that
the policy may change after 5 years. You may need to switch to a new policy
that includes depreciation, and the premium for this policy may be higher. Be
sure to consult with your insurance provider to understand your options and
choose the best policy for your needs.
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