Difference between zero-depreciation add-on cover and comprehensive car insurance
Confused by the difference between the zero depreciation cover and a comprehensive car insurance plan? In this article, we will explain them to you.
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Insurance can make a massive difference in times of crisis. Hence, it is advisable to purchase one that is well suited to your needs. Purchasing car insurance can now be done in a few minutes online. Moreover, it allows you to compare different car insurance companies, the quotes they offer and their network of cashless garages. To find the right insurance policy for your car, however, it is important to understand the basics. In this article, we will clarify the difference between a comprehensive car insurance policy and a zero depreciation cover.
What is Comprehensive Car Insurance?
There are three basic types of car insurance available in India; third party insurance, standalone own-damage insurance and comprehensive insurance. Third party insurance takes care of third party liabilities including death, bodily injuries and property damage. It is compulsory in nature and getting caught without it can lead to a fine of Rs 2000 and/or imprisonment for up to 3 months. Standalone own-damage insurance on the other hand takes care of own damage costs in the event of a mishap in several different situations including theft, road accidents, etc. The third type of insurance is comprehensive insurance and it provides coverage for both own-damage costs and third party liabilities under a single premium. Since the cover takes care of both aspects it offers the most holistic protection.
What is Zero Depreciation?
Zero Depreciation is an add-on cover that can be purchased along with a standalone own-damage insurance cover or a comprehensive insurance plan. The cover mitigates the depreciation rate of the car during claim settlement and thus makes the claim amount significantly higher. However, the zero depreciation cover is only available to cars that are less than five years old and can be used only a limited number of times in a year.
Difference Between Comprehensive Car Insurance and Zero Depreciation Cover
|
Basis |
Comprehensive Car Insurance |
Zero Depreciation Cover |
|
Coverage |
It is an insurance plan that takes care of third party liabilities and own-damage costs under a single premium. |
It is an add-on cover that can be purchased along with a standalone own damage cover or a comprehensive insurance plan. It mitigates the depreciation rate of the cover. |
|
Function |
It is an insurance plan. |
It is an add-on cover that is optional and can be purchased along with an insurance plan. |
Benefits of Purchasing a Comprehensive Insurance Plan and a Zero Depreciation Cover
A comprehensive insurance plan along with a zero depreciation add-on cover provides significant protection in case of a mishap. Here’s how:
|
Comprehensive Insurance |
Comprehensive Insurance + Zero Depreciation Cover |
|
Claim amount takes into consideration the depreciation rate of the car. |
Claim amount is always the maximum amount available according to the policy |
|
Is dependant on the age of the car |
Age of the car is not taken into consideration |
|
Cost of repairing fibre and plastic parts is borne by the insurance holder. |
Cost of repairing is borne by the insurance provider. |
Takeaway
In a nutshell, comprehensive insurance is one of the three types of insurance available for cars in India. It takes care of both the own damage costs and third party liabilities of the insurance holder in case of a mishap. Whereas the zero depreciation cover is an add-on, it can be purchased alongside standalone own-damage insurance or a comprehensive insurance plan. It mitigates the depreciation rate of the car at the time of claim settlement and thus makes the claim amount higher. Lastly, if you are looking for the best way to keep your car protected from the uncertainties of the road. It provides the most holistic coverage available for cars as mentioned above.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
