Depreciation in four wheeler insurance sometimes refers to the depreciation of an asset over time due to wear and tear, age and obsolescence. In general, four-wheelers depreciate in value over time. For example, a new four-wheeler will cost you more than an older one. Likewise, all of the materials used to build the four-wheeler, such as plastic, metal, and glass, depreciate over time. Each material or component depreciates at a different rate.
If your four-wheeler is damaged in an accident, you cannot cover the entire cost of replacing the components. After deducting the depreciation value, the fully comprehensive insurance only pays for the replaced parts. The insured must pay the difference in market value between the new and the depreciated parts of the vehicle.
It’s a good idea to get no-write-off car insurance. You can get the most out of your four wheeler insurance coverage by using it to get the most significant reimbursement during the claim period.
Car insurance without depreciation: what does it mean?
Zero write-off coverage, also known as zero write-off, is an add-on to comprehensive four-wheeler insurance policies and standalone comprehensive insurance that allows you to recover the full cost of auto parts repairs in the event of an accident. The damage amount is not reduced by the depreciation value of the damaged parts within the scope of this coverage.
Car insurance without depreciation protects your vehicle against all property damage without taking depreciation into account. Basic motor vehicle insurance protects you against damage if your four-wheeler is damaged or stolen and you report damage, but the payment is made after a regular depreciation deduction.
With fully comprehensive car insurance without depreciation, on the other hand, you receive the full amount of compensation. You can choose additional insurance without depreciation for new four-wheelers when you renew your car insurance.
With four-wheeler insurance without depreciation, the insurer pays the entire amount of the claim without taking into account the depreciation of the car. However, you have to pay a slightly higher price for this. In contrast, this add-on feature is highly recommended for everyone as it prevents the prospective owner from incurring any additional costs.
Benefits of Zero Depreciation Add-On coverage in 4×4 insurance
The following are some of the benefits of a zero write-off add-on to a four wheeler insurance policy:
Receive a higher claim amount: If you insure your four-wheeler with a zero depreciation surcharge, the depreciation on the parts of your car will not be assessed and you will receive a higher amount in the event of a claim. Save money: If you have a zero-depreciation supplement, you don’t have to pay out of your pocket in the event of an insurance claim, as the cost of depreciating the non-zero-depreciation supplement parts has to be borne by you. However, with a Zero Depreciation add-on, your insurance company will handle this for you. Mental Satisfaction: Opting for a zero-depreciation add-on guarantees you won’t spend unnecessary out-of-pocket money during claims, and honestly, just knowing that someone will have your back in your sad times can do so be fulfilling and you really provide some peace of mind.
Factors affecting your zero depreciation four wheeler insurance premium
The following variables affect the premium of your Zero Depreciation Supplemental Insurance:
The age of your four-wheeler: Because a zero depreciation supplement is closely related to the aging of your vehicle and its components, the age of your vehicle plays an important role in determining the premium for your zero depreciation supplement insurance. The location of your 4×4: Every city is unique, as are its hazards. As a result, your premium for motor insurance – which includes the additional premium for your zero depreciation supplemental insurance – is determined by the city where you ride your four-wheeler. The model of your four-wheeler: When it comes to four-wheeler insurance, a lot depends on the model and type of your four-wheeler. Since the cost of its components is also determined by it, the type of four-wheeler you have will dramatically affect the cost of your zero-depreciation add-on policy.
The role of Zero Depreciation add-on coverage during claims adjustment
The primary function of a zero depreciation surcharge in claims adjustment is to save you money that you would otherwise pay out of your wallet.
To make it easier for you, consider the following example:
Suppose your total claim amount payable is ₹20,000 and the total cost of depreciating your car’s components is ₹6,000; In this case, your insurance provider will cover these costs and only pay you ₹14,000 if you don’t have zero depreciation coverage. However, if you do not have write-off protection, you will receive a total of ₹20,000 as the claim amount.
Things to consider about zero depreciation
You need to note the following things about zero depreciation:
Once you have made the number of claims described in the Certificate of Insurance, the Zero Depreciation supplemental insurance is no longer active. A Zero Depreciation policy only covers the cost of partially depreciating your car in the event of a claim, not your mandatory deductibles. Claims made by the insured under this Supplement are subject to the insurance conditions of the Four Wheel Insurance Plan.
Who Needs to Opt for Zero Depreciation Add-On Coverage?
If you plan to buy a new four-wheeler in the near future, you should include zero depreciation coverage in your comprehensive motor insurance. You have already spent a lot of money on your new four-wheeler. Investing a little more in insurance with the right benefits can help you avoid paying more.
It is widely believed that no-damage 4×4 insurance is appropriate for novice or inexperienced drivers as they are more likely to cause damage to the vehicle. However, it should not be taken as a rule of thumb as there are several instances where even the most experienced drivers have gotten themselves into horrible situations through the fault of other drivers.
Conclusion: Now that you are aware of zero depreciation auto insurance, it is recommended that you purchase auto insurance online with this coverage to limit your financial responsibility. Read the Terms carefully to understand their content and exclusions. It will help you avoid any legal complications later when filing a claim. You can buy it from well-known insurance carriers in India like Tata AIG and others to avoid the hassle.
