Zero Depreciation Cover

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Zero Depreciation Cover (An add-on or Extension) A zero dep cover is an add-on in car insurance under which your insurance company won't charge you for depreciation during the claim settlement. In simple words, you are not required to pay for the depreciation cost while making a claim. A comprehensive policy provides coverage for own damage and damages caused to the third party. Premium. When car parts are replaced following an accident, the insurer deducts the depreciation on these parts and pays the remaining value as claim payout. Remember zero Depreciation only covers the cost of your car's part depreciation during claims and doesn't cover your compulsory deductibles. Zero Depreciation add on cover policy will not be valid once you have claimed for the specified number of times as mentioned in the policy document. If the basic car insurance policy is enhanced with a zero depreciation cover, the insurance company will not deduct any depreciation on car parts. With this optional cover, your policy will offer full compensation for part replacements. This will ensure higher payouts and lower out of pocket expenses in case of a claim. The policyholder, hence, receives the entire price of replaced parts. Zero depreciation cover will not be applicable in the case of a car theft. Claim made by the insured under this add on are subject to terms and conditions of your Car Policy. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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