Add-ons in Your Car Insurance: Zero-depreciation Add-on

A comprehensive insurance policy with zero-depreciation insurance add-on cover confirms that the insurer will compensate for the depreciation on the parts, as specified in the policy document. The benefits of the add-on can be used up to a certain number of times during the policy period.

Popular car insurance providers recommend having zero-dep insurance as an add-on if your car’s age is under five years. Bajaj Allianz car insurance policy offers this add-on too.

Without the zero dep insurance add-on, all insurers settle your claim after making the necessary deductions for depreciation. Having the add-on cover ensures that there are no deductions for parts that depreciate.

What exactly is depreciation?

Depreciation is the decrease in the value of your vehicle caused by natural wear and tear as it ages. The older your vehicle, the greater its depreciation.

The advantages of adding zerodep car insurance:

  • Save money: A zero-depreciation add-on ensures you do not have to pay from your pocket in case of a claim.
  • Get a higher claim amount: When you secure your car with a zero-depreciation add-on, the depreciation on the parts is not calculated. So, you will receive a higher amount during claims.
  • Peace of mind: It may provide you with peace of mind knowing that someone will have your back during unfortunate accidents.

* Standard T&C Apply

What is excluded from the zero-depreciation add-on cover?

Other than the general exclusions listed under car insurance, the claim is not entertained when:

  • The car insurance policy is void.
  • The damage cannot be assessed.
  • The claim is not included in the policy’s ‘Own Damage’ section.
  • Costs incurred for repairing damaged parts that are not covered by the policy.

* Standard T&C Apply

The factors that influence your zero-depreciation car insurance premium:

  • Your vehicle’s age: Because a zero-depreciation add-on is directly related to the ageing of your vehicle and its components, the age of your car plays a significant role in determining the car insurance prices for your zero-depreciation add-on cover.
  • Your car’s model: A lot depends on the type and model of the car, as your car’s make also determines the cost of its components.
  • Your car’s registration location: In a car insurance policy, your premium—including the additional premium for your zero-depreciation coverage—will be determined by the city where you drive your car.

* Standard T&C Apply 

You can use an online car insurance calculator to check how a zero-depreciation add-on might affect your premium amount. 

Why is a zero-depreciation comprehensive policy preferable?

A comprehensive policy is undoubtedly an excellent way to protect your vehicle from all potential damages. However, you will have to pay for your car’s parts depreciation during claims if you do not have zero-depreciation add-on coverage. *

The function of zero-depreciation coverage during claim settlement

The primary function of a zero-depreciation policy during claims is to save you money that you would otherwise spend out of your pocket. You will receive the entire amount as your claim if you have zero-depreciation coverage. * 

What should you remember about zero depreciation?

  1. Once you have claimed for the specified number of times as defined in the policy document, the zero-depreciation add-on cover policy will no longer be valid.
  2. A zero depreciation does not pay for your policy’s deductibles; it simply covers the cost of the parts depreciation during claims.
  3. The claim made by the insured under this car insurance add-ons, is subject to the terms and conditions of your policy.

* Standard T&C Apply

If you are planning to buy or renew your Bajaj Allianz car insurance, you can add this zero-dep add-on to your comprehensive car insurance policy.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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