When buying a car, most people focus on getting the right model and price, but the real protection lies in the kind of insurance you choose. Many car owners now opt for zero-dep insurance, an add-on that ensures you receive the full claim amount without the usual deductions for depreciation.
Despite its popularity, several myths still surround this cover, leading many to skip it during purchase or renewal. Let us break down the five most common misconceptions about zero depreciation cover and understand what it truly offers under your car insurance plan.
What is Zero Depreciation in Car Insurance?
Depreciation is the reduction in the value of your car and its parts over time due to wear and tear. Normally, during a claim, the insurer deducts this depreciation before settling the amount, meaning you get less money than what it costs to repair or replace the parts.
Zero-dep insurance eliminates these deductions. When you have this add-on, your insurer covers the full cost of replaced parts. You just have to pay the pre-specified deductible amount. It is designed to help you recover the maximum value during a claim, especially for costly repairs.
Misconceptions About Zero Depreciation Car Insurance
Myth 1: It Covers Everything
A common misunderstanding is that zero-dep insurance covers all types of damage. In reality, this cover applies only to the repair or replacement of car parts after an accident. It does not include routine wear and tear, engine damage from oil leakage or mechanical breakdowns.
It is meant to supplement your car insurance policy, not replace it entirely. Pairing it with comprehensive coverage ensures your car is protected from most risks.
Myth 2: It’s Only for New Cars
While it is true that zero depreciation is most beneficial for new vehicles, it is not limited to them. Many insurers offer this add-on for cars up to five years old.
If your car still has a high market value or you frequently drive in busy areas where minor accidents are common, zero-dep insurance remains a smart investment.
Myth 3: It is Too Expensive
Many people avoid the bumper-to-bumper add-on, thinking it will raise their premium. But the truth is, it usually costs just a little extra, often less than what you would spend on a tank of fuel.
That small amount can save you thousands later if you ever need to replace costly parts like bumpers or headlights. It is a cost-effective enhancement, especially when renewing your car insurance policy.
Myth 4: You Can Claim Unlimited Times
Most zero depreciation covers allow a limited number of claims in a policy year, usually two. This limit prevents misuse and keeps premiums affordable for all policyholders. Therefore, it is best to use the cover for substantial repairs rather than minor cosmetic damage.
Myth 5: All Insurers Offer the Same Cover
Zero depreciation cover options from all the insurers are not identical. The scope, claim limit and eligible car age vary across insurers. Before opting in, review the terms carefully, especially exclusions and the number of allowed claims. Comparing plans during renewal can help you choose a more flexible and transparent cover.
Conclusion
Adding a zero depreciation cover to your car insurance policy means you get the full value of repairs without losing out on depreciation. With insurers like TATA AIG, it is easy to include this option with features that allow you to renew online, file claims faster and keep your coverage clear and transparent.
For car owners who want maximum protection and minimal financial stress during repairs, zero-dep insurance is a choice worth making.
