Comprehensive v/s Zero Depreciation: Understanding the Difference

Over the years, there has been a steady increase in the number of individuals seeking to buy car insurance online due to the sheer convenience and availability of numerous options online.

While settling a claim for damages to your car, your insurance provider will have to consider your car’s age and, subsequently, the depreciation (wear and tear) to its parts. Hence, the final claim amount you receive will include a standard deduction of depreciation.

However, with a Zero Depreciation add-on added to your comprehensive car insurance policy, your insurer will not consider the depreciation of your car, and you will receive the complete claim amount as per the extent of the damage.

Difference between a Zero Depreciation Cover and comprehensive insurance

The most basic difference between a Zero Depreciation Cover and comprehensive insurance is that latter is a type of insurance plan while the former is an additional cover that can be included in the comprehensive insurance plan

Hence, as seen, with a Zero Depreciation Cover, one can reduce the deduction on their total claim amount. But it should be noted that adding this cover to your car insurance policy will increase your policy premium. You can choose to add the Zero Depreciation Cover to your insurance cover either when you buy an insurance policy online or during your car policy renewal.

**Benefits of Getting a Zero Depreciation Add-on **

Depreciation is an inevitable aspect when it comes to any asset. As time passes, the quality of any object starts deteriorating; automobiles are no different. However, here are some benefits that a Zero Depreciation Cover can add to your insurance policy -

• This cover helps the policyholder reduce the expenses payable from their end as it does not deduct any depreciation from the claim amount.
• There is minimum or no financial loss on the part of the policyholder in case the car is damaged. The depreciation cover, the insurer does not subtract the depreciation amount from the claim.

Who should get Zero Depreciation Cover with their comprehensive policies?

The Zero Depreciation add-on is a beneficial addition to the comprehensive insurance plan. The comprehensive insurance plan offers extensive coverage that even protects the car from third party damages.

It is beneficial to have Zero Depreciation if you stay in a risk-prone zone where there is a higher likelihood of damage to your car. Additionally, if you have a luxury car, with expensive parts and components, it is advisable to get Zero Depreciation insurance.

**Car insurance by Tata AIG **

TATA AIG car insurance offers comprehensive protection to your car with third-party damage cover, own-damage cover and personal accident cover. You can further enhance the policy coverage with a choice of 12 attractive riders, including Depreciation Allowance or Zero Depreciation Cover. Buy Tata AIG comprehensive car insurance with Zero Depreciation Cover today with our seamless 3-step online purchase process. The car insurance premium is based on the IDV and the add-ons chosen. You can determine the amount using our car insurance premium calculator online..

**Conclusion **

All in all, the Zero Depreciation add-on is known to offer a very good deal, especially if you are someone who has to use their car regularly. Cars that undergo extensive use become more prone to damage over a period of time; with Zero Depreciation in car insurance, one can avoid having any deductions made to their claim amount if the need arises.

**A quick glance at some frequently asked queries **

1. What is the difference between comprehensive and Zero Depreciation insurance?

The Comprehensive Insurance Plan is an all-inclusive insurance plan. In an unfortunate event, it offers coverage to the policyholder’s automobile, the policyholder and also covers third party damage. Zero Depreciation is primarily an add on feature which one can add to their comprehensive insurance plan.

2. Which is best: zero DEP or comprehensive insurance?

Zero Depreciation is an add-on whereas the comprehensive insurance plan is a type of insurance. While it is a legal mandate to have a comprehensive or at least a third-party cover, adding a Zero Depreciation Cover to your comprehensive plan is a matter of choice.

3. Does comprehensive insurance include Zero Depreciation?

Comprehensive insurance does not include Zero Depreciation unless you choose to include the add-on to your comprehensive insurance plan.

4. Should I take zero DEP insurance?

The addition of Zero Depreciation to an insurance plan can come with its own set of pros and cons. However, in this case, the pros outweigh the cons. The downside could be a higher premium payment. The pros, on the other hand, include the negation of the depreciation sustained by the vehicle.