Zero Depreciation Cover is an add-on cover that can be purchased along with a comprehensive car insurance policy. It provides full coverage for the replacement or repair of car parts that are damaged or destroyed in an accident, without taking into account the depreciation factor.
Depreciation is a factor that decreases the value of your car over time. It is calculated based on the age of the car and the type of car parts. In a typical car insurance policy, the insurer deducts the depreciation factor from the cost of the car parts before settling the claim. This means that the car owner has to bear the cost of the depreciation factor.
However, with a Zero Depreciation Cover, the insurer does not consider the depreciation factor while settling the claim for the damaged car parts. This means that the car owner does not have to bear the cost of the depreciation factor, and the entire cost of the replacement or repair of the damaged car parts is covered by the insurer.
Benefits of Zero Depreciation Cover
- Full Coverage: Zero Depreciation Cover provides full coverage for the replacement or repair of car parts that are damaged or destroyed in an accident.
- No Deduction for Depreciation: The insurer does not consider the depreciation factor while settling the claim for the damaged car parts.
- Cost-effective: Investing in a Zero Depreciation Cover is cost-effective, as it can save the car owner from bearing the cost of the depreciation factor.
- Peace of Mind: Zero Depreciation Cover provides peace of mind, knowing that the entire cost of the replacement or repair of the damaged car parts is covered by the insurer.
Bumper to bumper insurance, also known as Zero Depreciation or Nil Depreciation insurance, is an add-on cover that provides complete coverage for any damage or loss caused to a car. It is an extension of a comprehensive car insurance policy and is considered as one of the most comprehensive car insurance policies available in the market.