Motor insurance is a type of general insurance policy. It provides coverage for losses and damages to vehicles. There are many motor insurance companies in India. Each company provides a unique set of advantages and benefits to satisfy the unique needs of policyholders. When purchasing motor insurance, we all must hear the term add-on coverage. Isn’t it? Add-on covers are additional benefits given by an insurer to the insured. The policyholders can purchase add-on riders with their standard motor insurance by paying an extra premium.
There are many types of add-ons provided by insurance companies. One such is zero depreciation coverage. As the name suggests, with this add-on, the policyholder doesn’t have to pay depreciation for the damaged or replaced vehicle parts. Zero depreciation coverage proves to be more advantageous for luxury vehicles. Wait, the picture is not yet complete! Oftentimes, we misunderstand certain things regarding a zero depreciation policy. In this article, we’ll debunk some common myths regarding zero depreciation coverage. Read on to find out!
Common Misconceptions Regarding Zero Depreciation Cover
Here are some common misconceptions related to a zero depreciation policy.
Myth 1: There are no exclusions under zero depreciation cover
Similar to other motor insurance add-ons, certain things are not covered under the zero depreciation cover. Some of the things not covered include regular wear and tear, damages that happened due to oil leakage, water ingression, mechanical failure, and more.
Myth 2: You cannot buy zero depreciation cover for two-wheelers
The insurance companies in India provide zero depreciation coverage for both cars and bikes. You can buy this add-on at the time of purchasing or renewing your motor insurance plan. In case your claim is admissible, you can take advantage of the zero depreciation benefit.
Myth 3: Zero depreciation covers can be purchased for old vehicles.
Most insurance companies provide zero depreciation coverage only for vehicles under the age of 5 years. Therefore, if you have a car or bike older than 5 years, you may find it difficult to search for insurance companies, resulting in limited options to choose from.
Myth 4: You can claim your zero depreciation add-on multiple times
Another myth regarding zero depreciation add-ons is that there is no limit to claiming a zero depreciation cover. However, in reality, there may be a limit to the number of claims you can make under this plan during the policy term. The usual limit is twice, but this can differ depending on the insurance company. It is best to read the policy document carefully at the time of policy purchase.
Myth 5: Cost of deductibles are covered under zero-depreciation cover
The policyholder must pay the mandatory deductible, which is determined by the CC of your vehicle. Similar to the consumable cost, deductible expenses are not covered under zero-depreciation coverage.
Wrap up
In conclusion, zero depreciation cover is an important add-on for deducting your costs at the time of claim settlement. Before purchasing this add-on, make sure that you know about the above-mentioned misconceptions. Furthermore, when purchasing motor insurance with zero depreciation, ensure that you read all the terms and conditions mentioned in the policy thoroughly. For more detailed information regarding zero depreciation cover, you can contact the customer support team at InsuranceDekho.