Zero-depreciation automobile insurance, often known as bumper-to-bumper insurance, provides comprehensive coverage without accounting for depreciation. This enables vehicle owners to enjoy lower out-of-pocket expenses in the event of a claim, ensuring that they get the whole sum insured.
However, several misconceptions can lead to wrong decisions when buying this add-on cover. Keep scrolling to learn the top myths about zero depreciation insurance and their truth.
Common Misconceptions About Zero Depreciation Insurance
Find some of the common myths about zero dep car insurance and bike insurance listed below:
1. Several Claims Can Be Made Under Zero Depreciation Insurance Coverage
In the case of most insurers, there is a limit to the number of times you can claim on this plan during the policy period. The normal maximum limit is twice, but this can vary, with some insurance companies providing several or unlimited claims. Thus, examining the policy documents when purchasing zero depreciation cover is essential to understanding claim limitations.
2. Zero Depreciation Insurance Even for Used Vehicles
Most insurers do not allow vehicles older than five years to be eligible for zero depreciation add-on coverage. So, if you desire a second-hand vehicle and want a zero depreciation cover, ensure it is lower than five years of age.
3. Consumable Costs are Covered
The garage employs a variety of consumable products when repairing an automobile, such as nuts and bolts, oil, and so on. A car insurance policy does not cover the cost of such products unless you have the consumables add-on. The zero depreciation car insurance cover does not cover this expenditure.
4. Two-Wheelers Cannot Get a Zero Depreciation Cover
The zero-depreciation insurance is available for both cars and two-wheelers. You can select this add-on coverage while acquiring or renewing your auto insurance online. So, if your claim is approved, zero depreciation coverage will be applicable for both vehicle types.
5. There Are No Exclusions With Zero Depreciation Insurance
There are various exclusions under zero depreciation coverage, like:
- You cannot benefit from the protection if you do not have a valid driver’s license.
- Owners of vehicles older than five years cannot choose the zero depreciation add-on.
- You cannot access the cover benefit if you get caught driving under the influence of intoxicants.
- Zero depreciation coverage excludes compulsory deductibles outlined in your primary policy.
- It does not apply to vehicle breakdowns or normal wear and tear.
- This add-on does not cover expenses such as car or bike engine oil, clutch oil, brake oil, coolant, etc.
6. Deductible Charges are Not Applied
You must pay the compulsory excess, which is determined by your vehicle’s engine capacity. This plan does not cover the cost of deductibles, and thus, in the event of a claim, you must pay for the compulsory deductible component before receiving coverage.
7. It Covers the Normal Maintenance
Bumper-to-bumper car insurance covers only accidental damages and accompanying repairs, not routine maintenance or part replacements due to wear over time. This policy is not a substitute for scheduled maintenance or wear-and-tear expenditures.
8. Zero Depreciation Insurance Costs More
Zero-depreciation insurance often has a slightly higher premium than ordinary insurance. However, the benefits of decreased out-of-pocket spending usually offset the added cost during claims.
Now that we have busted the common myths about bumper-to-bumper insurance, you can decide to purchase this add-on. A zero depreciation cover can be an ideal choice if you are buying a new vehicle. Doing so ensures you get the entire sum insured without accounting for depreciation until the vehicle turns five.
Disclaimer:
CBD:
Qrius does not provide medical advice.
The Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) outlaws the recreational use of cannabis products in India. CBD oil, manufactured under a license issued by the Drugs and Cosmetics Act, 1940, can be legally used in India for medicinal purposes only with a prescription, subject to specific conditions. Kindly refer to the legalities here.
The information on this website is for informational purposes only and is not a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of your physician or another qualified health provider with any questions regarding a medical condition or treatment. Never disregard professional medical advice or delay seeking it because of something you have read on this website.
Gambling:
As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman, and Sikkim, prohibit gambling. Land-based casinos are legalized in Goa and Daman under the Goa, Daman and Diu Public Gambling Act 1976. In Sikkim, land-based casinos, online gambling, and e-gaming (games of chance) are legalized under the Sikkim Online Gaming (Regulation) Rules 2009. Only some Indian states have legalized online/regular lotteries, subject to state laws. Refer to the legalities here. Horse racing and betting on horse racing, including online betting, is permitted only in licensed premises in select states. Refer to the 1996 Supreme Court judgment for more information.
This article does not endorse or express the views of Qrius and/or its staff.
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