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What is Nil Depreciation Car Insurance, and What Does it Mean?
With zero depreciation car insurance, the insurer covers the full cost of repairing or replacing damaged parts, except for compulsory deductibles, leading to a higher claim payout compared to regular policies.
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4. Role in Claim Settlement
Zero depreciation cover makes a noticeable difference when you file a claim under car insurance. While in regular car insurance, depreciation value is deducted from the claim amount, car insurance with zero dep cover gets the full claim amount. This means the full cost of the replaced parts is covered, reducing the out-of-the-pocket expenses of car owners.