If you are planning to purchase a car or own one already, then you must be aware that you should have valid four-wheeler insurance coverage to drive on the roads of India. The need for vehicle insurance arises because of the risks associated with driving, including accidents, personal injuries, death, damage to the vehicle, etc. This is why countries across the world have motor laws that insist that owners should buy car insurance and keep it active as long as they drive their vehicles.
If you buy car insurance online, you can get a policy with lower premiums. Furthermore, this approach can help you do away with the strenuous paperwork associated with an offline purchase of insurance. Many insurers in the country offer online insurance, including Tata AIG. If you wish to buy a car insurance policy online, the Tata AIG car insurance purchase can be completed in just a few simple steps.
What is a Comprehensive Car Insurance Policy?
Driving a car in India is no more a luxury that only the affluent can afford. With higher disposable incomes, most families in the country have the funds to purchase one car or more. However, driving on Indian roads is far from safe. The traffic situation in the country is far from ideal, and there is widespread violation of traffic laws, making car owners vulnerable to accidents. This is the foremost reason behind having insurance for your car.
A comprehensive car insurance policy is a plan that provides you complete financial protection for your car, including a third-party cover, an own damage cover, and a personal accident cover. This policy can assist you with the expenses incurred due to a road accident as well as the total loss of the car during events such as theft. Apart from covering the aforementioned damages, four-wheeler insurance also protects you against the legal consequences of an accident caused by you.
What is a Zero Depreciation Cover?
Depreciation refers to the decrease in the value of a product over the years. When you use your car for a few years, its market value reduces. This decline in the value of your car is termed depreciation. Therefore, a zero depreciation cover in car insurance is an add-on feature that acts as an added benefit that you can buy with comprehensive insurance.
When you opt for a comprehensive car insurance policy, you select an all-inclusive plan which will offer protection to you, your car, any affected third party damage in the wake of an accident, theft, vandalism, natural calamities, fire, etc. To enhance your car insurance coverage, you can add a zero depreciation cover to your comprehensive car insurance policy. It is worth noting here that you can also add other add-ons such as roadside assistance and engine protection.
Here’s Why You Should Opt for Zero Depreciation in Car Insurance
Although a comprehensive car insurance policy provides extensive coverage to your car, it has certain exclusions, which have been listed below.
- Depreciation of the vehicle
- Routine wear and tear
- Electrical breakdowns
- Driving without a valid driving license
- Driving under the influence of alcohol or drugs
- Damage to tires and tubes
- Damage due to war-like situations, nuclear attacks, etc.
Adding Zero depreciation in car insurance can help you claim the total cost of your car from your insurer in the aftermath of a total loss event such as theft. The benefit of this cover is that the depreciation accumulated on your car will not be deducted from the claim amount.
If you have recently purchased a car, it makes sense to opt for a zero depreciation cover along with a comprehensive car insurance policy. This will help you reduce any out-of-pocket expenses for your car’s repair and get its Insured Declared Value if it gets stolen or completely damaged.
The combination of a comprehensive car insurance policy and a zero depreciation cover will provide you with the following benefits:
- It will keep unnecessary expenses related to accidental damage to your car at bay.
- It will protect you from a sudden financial loss pertaining to your car by compensating the full repair or replacement sum following a total loss event.
Zero Depreciation Cover or Comprehensive Insurance – Which is Better?
You cannot choose between a comprehensive car insurance policy and a zero depreciation cover, and you do not have to. If you are buying a comprehensive car insurance policy, it will be prudent to opt for a zero depreciation add-on as it will provide you with extensive coverage for any kind of damage to your car.
Furthermore, if you need to drive your car regularly in any risk-prone zone where it is highly likely to get damaged, a zero depreciation cover is a must-buy. It is important to note that in the case of luxury cars with expensive spare parts, investing in a zero depreciation add-on is advisable.
Conclusion
If your car undergoes extensive use, it will get more prone to damage over time. However, even if it is parked in a garage, its value gets consistently deprecated. Hence you must add a zero depreciation cover to your comprehensive insurance policy so as to avoid any financial loss in your car insurance claim owing to the depreciation on your car.
