What is comprehensive car insurance?
As the name suggests, a comprehensive car insurance policy offers broader coverage to the policyholder. Under this car insurance policy, the insurance company compensates the policyholder against third-party liabilities and own damages arising out of the insured car. Own damages include damages sustained by the insured car due to unforeseen events such as accidents, collisions, earthquakes, strikes, fires, theft, etc.
On the other hand, third-party liabilities includes third-party death, injuries, and property damage due to the insured vehicle.
What is zero depreciation in car insurance?
Zero depreciation cover is basically an additional cover that you can add to your comprehensive car insurance policy.
This add-on is also known as zero-depreciation insurance or bumper-to-bumper insurance, and provides coverage for depreciation sustained by the insured four-wheeler. In general, a standard comprehensive car insurance policy does not cover any depreciation borne by the insured car.
However, with the help of this add-on, you can get compensation for any depreciation as per the rates set by the IRDAI. It covers all vehicle parts, including plastic parts, rubber parts, nylon parts, batteries, tyres, tubes, airbags and fiberglass components.
Zero dep car insurance is very beneficial for new cars. It can be purchased along with a comprehensive car insurance plan by paying an additional premium.
Comprehensive Insurance vs Zero Depreciation for Car
Now that you know the meaning of both these terms, let us understand the differences between them:
|
Point of Difference |
Comprehensive car insurance with zero dep cover |
Comprehensive car insurance without zero dep cover |
|
Premium |
Higher than a standard comprehensive policy |
Lesser as it does not include zero dep |
|
Coverage |
Covers depreciation borne by the insured car along with own damages and third-party liabilities. |
Only covers own damages and third-party liabilities arising out of the insured four-wheeler. |
|
Compensation Received |
Compensation received is higher as it also compensates for depreciation borne. |
Lesser compensation as depreciation is not included. |
|
Age of Car |
Depends on the insurer but is usually given for cars upto 5 years old. |
No age limit of the car |
|
Repair of Plastic Parts |
No depreciation is considered when repairing plastic parts of a car |
50% depreciation cost is considered when repairing plastic parts |
As soon as a car comes out of the showroom, its value begins to depreciate. Therefore, to cover this depreciation, the car owner can purchase zero dep cover along with a comprehensive car insurance policy. Therefore, it is an additional coverage and only covers the depreciation of a car.
Wrapping Up!
If you have a new car, taking the zero dep add-on alongside a comprehensive car insurance policy can really beneficial for you. Additionally, by paying a small premium, you can cover your car against any decrease in value at the time of claim settlement. Please note that you cannot purchase a zero-dep add-on separately. It can only be purchased with a comprehensive car insurance policy.
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