Zero Depreciation Vs. Comprehensive Car Insurance- All You Need To Know
With the passage of time,the value of every asset depreciates, and the same is with your car. Due to depreciation, the value goes down, which in turn also brings down the insurance premium amount. In many companies, one can see the feature of zero depreciation; it means that the value of your car is protected. Another part of the plan is comprehensive car insurance, which covers many things related to the car and its value. Hence, looking at both of these aspects, a buyer may feel in a dilemma as to what he should opt for. Therefore it becomes necessary for him to have a thorough evaluation of both of these aspects and decide what the best is.
What is zero Depreciation?
For a car owner, zero depreciation is something quite useful. As per this feature, the insured declared value of the car is not reduced even after a specific period, and the coverage offered will be for a larger amount only. Hence, if the car goes for total loss, one can get a better amount as a claim from the insurance company. However, here one needs to note that to avail this benefit he may need to pay a premium higherthan the normal one.
What is a comprehensive plan?
The comprehensive plan is better for those who want to have an adequate amount of coverage for every part of the car. As the name suggests, The Comprehensive Plan means a plan under which almost everything of your car will be covered. In case of the total loss of the car, one may be eligible for the IDV, and in any case, there can be sufficient coverage for almost every part of the car, whether it is made of glass, plastic, or rubber. Under the comprehensive plan, one may also have cashless repairing at certain garages. Almost every insurance company has tie-ups with a number of authorized garages.
Some important points to consider
- Claim settlement: For any customer, it is much necessary to check if the concerned plan will have provision for quick claim settlement. One should also make sure that the claim settlement ratio of the company is good enough. If the same is low, one must refrain from it as it may have a much stringent policy to settle the claim, and one may have to suffer to get any claim due to any unforeseen event. This ratio is usually displayed by every player in this market on their website, as well as the site of the regulatory authorities also. In both of these plans, the settlement can be an essential aspect.
- Plastic parts repairing: Plastic and rubber parts are used in a car to a more considerable extent. In many cases, the claim amount one can get on these parts is only up to fifty percent of the original price. It means that the customer will have to bear the rest of the amount and pay from his pocket. One must check this point from various service providers and see which one can be the best for him. Particularly in a comprehensive plan, this point needs to be focused.
- Age of your car: The age of your car matters a lot. If one goes for zero depreciation for an old car, it may not be much useful. For such a car, it is better for the car owner to go for a comprehensive plan, as zero depreciation does not make any sense for an old car.
- Premium:This aspect showcases an essential difference between zero depreciation and the comprehensive plan. The premium of zero depreciation can have a little effect on the total premium; but if one goes for the comprehensive plan, the premium may be higher than the normal one. However, as per the experts, one should go for the comprehensive plan as it can offer complete protection to the car, while zero depreciation can help one to save from the insured declared value only.
These are considered as important points from the viewpoint of a buyer who is a little confused with buying an insurance plan for his car. It can offer him the best protection in case of any unforeseen event.