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7. Suitable for New Cars
While zero-dep insurance is available for older cars, it is particularly beneficial for new vehicles as they experience higher depreciation rates in the initial years.
Things to Keep in Mind
Zero-dep insurance is better suited for new cars, ranging from one to five years old. There is also a limit on the number of claims that can be made under the coverage per year.
Is Zero Depreciation Add-On Worth It?
2. Car Age The car’s age directly affects the car’s premium. Zero depreciation cover is most beneficial for new or relatively new cars that are up to 5 years old. New cars typically come with expensive spare parts; the add-on ensures higher claim reimbursement.
3. Protect Your New Car
Zero depreciation cover is typically offered as an add-on with your car insurance policy till your vehicle is five years old. However, in some cases, it may go up to seven years, and this may vary from insurer to insurer.
What Is Zero Depreciation Car Insurance Cover?
Zero depreciation car insurance is an add-on cover which is available with comprehensive car insurance plans. It is also called nil depreciation or bumper-to-bumper cover. Under this add-on, the applicable depreciation on the different parts of the car is not considered in the case of claims.
3. Protect Your New Car
Zero depreciation cover is typically offered as an add-on with your car insurance policy till your vehicle is five years old. However, in some cases, it may go up to seven years, and this may vary from insurer to insurer.