In a zero-depreciation or nil-depreciation policy the entire claim amount is paid by the
Car Insurance Company
without considering the depreciation on the value of the car. Obviously, you have to pay slightly more in terms of your premium. However, this add-on feature is highly recommended to everyone considering the fact that it eliminates the possibility of any out-of-pocket expense from the owner. This add-on extends to the repairing costs of fibre, glass, rubber parts and plastic
The following are a few important points to consider while opting for a zero-dep policy:
- The zero depreciation car insurance policy is applicable to cars under the age limit of 3 years. So in other words, only new cars are eligible for nil-depreciation policy.
- You can make only a certain number of claims under the nil-depreciation policy. This is to limit the customers from making
claims about every small dent in their car.