Comprehensive vs Zero Depreciation Car Insurance: Coverage, Calculator & Claim Process

The zero depreciation car insurance cover is a very handy cover to have in motor insurance. It protects you from the IDV of the vehicle at the time of a claim. How does the zero dep cover help and how can you attach the zero depreciation rider to your plan. Read on to get all the answers.

What does Zero Depreciation Mean?

What exactly is zero depreciation meaning? To put it in simple terms, zero dep insurance protects your vehicle from the financial losses incurred due to ageing. With age, the value of the car falls. As a result, the IDV (current market value) also begins to depreciate. When you make a car insurance claim, the IDV is calculated and the claim amount is paid out accordingly. This leads to you receiving a lower claim amount. To work around this problem you need to invest in a zero depreciation cover.

What is Zero Dep/Zero Depreciation Car Insurance?

Now that you know what is zero depreciation car insurance, you should try to get this cover. You can also use the zero depreciation car insurance calculator for better understanding. But before doing so, keep the following points in mind:

1. Available as rider

The zero dep cover is commonly available as a rider with comprehensive motor insurance plans. Most people who opt for this cover buy the rider. Explore the options that are available, compare the policies and find your ideal with which you can keep your vehicle protected in the best way.

2. Not available for old cars

There is one very important clause associated with zero dep insurance that you should know. The zero depreciation cover cannot be applied to a vehicle that is older than five years. You can only opt for this cover if your car is aged five or fewer years. Also, the car is best suited for new and expensive cars that may need repairs to its expensive parts.

Some companies do provide Zero Dep cover for older cars, i.e. more than 5 years as well, but the options are limited and expensive. So, choose wisely.

3. Not a compulsory cover

Zero depreciation is not a compulsory car insurance cover. It is an add-on or extra cover that you can opt to buy. You won’t be legally held responsible if you are found driving your car without this cover.

Once you are aware of these factors, you will be able to understand what is zero dep car insurance is. Then, compare car insurance plans, find the most suitable cover, attach the zero depreciation cover and make the plan custom-made as per your requirements.

Car Depreciation Rates in India

The components of the car also reduce in value over time:

Who should Buy Zero Depreciation Car Insurance Cover?

So, wondering who should opt for Zero Dep Car insurance, here is the list:

1. Someone who is buying a brand new car or a pre-owned car that is less than 5 years old
2. If the car in question is a luxury/ highly expensive car
3. If the car is being used quite often
4. In case the driver is a learner and thus more prone to accidents

How to calculate zero dep Insurance Premium?

In order to calculate your zero dep car insurance premium, you can visit the PayBima Motor Insurance portal and use the zero dep car insurance premium calculator. Follow the steps to calculate the premium:

1. Enter the registration number of your vehicle, your mobile number and your email id
2. On the next page fill in details about the previous policy/ claims made etc, then click “Get Quote”
3. You can browse through the plans and compare the different car insurance plans available
4. You will be able to see the charges for the zero depreciation cover that is to be paid

Difference Between Comprehensive Insurance vs Zero Depreciation Car Insurance

Let us take a look at this table to help understand the differences between Zero Depreciation Cover and Comprehensive Cover:

Difference Between Third-party Car Insurance vs Zero Depreciation Cover

Car Depreciation Rates With and Without Zero Depreciation Cover

Conclusion

It is very easy to find a good motor insurance plan these days. The plans are very comprehensive in nature, but there are certain drawbacks such as the calculation of the IDV by using the zero dep car insurance premium calculator. However, such problems can easily be tackled with the help of handy car insurance riders such as the zero depreciation rider. Add this to your comprehensive plan, or buy zero dep car insurance plan and keep your vehicle protected in the most wholesome way possible.

Also read: Difference Between Own Damage and Third Party Car Insurance Policy

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