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Why Opting For A Zero Depreciation Cover Was The Right Choice For Mr. Jaydeep.

Author: Pranit Kamble
by Pranit Kamble
Posted: Dec 10, 2018

Though comprehensive car insurance protects you from the financial costs of an accident, it does not completely alleviate out-of-pocket expenses in case of a claim. This is because, when you make a claim, your insurance provider uses a complex formula to determine the extent of compensation that needs to be provided.

One of the main factors that influence this formula is the depreciated value of your car. So even though you’ve opted for a comprehensive plan, you might still end-up covering a substantial amount of the repair costs owing to the decreased financial value of your car.

However, you can safeguard yourself from such a scenario by opting for the zero-depreciation add-on with your comprehensive car insurance policy. This add-on will ensure you get the entire repair amount covered or reimbursed without any deficit due to depreciation. The only catch is that you have to pay a little extra to enjoy the protection of this add-on.

Now, when the question of added cost comes into the fray, many buyers face a dilemma. They don’t know if they should shell out the additional funds or just settle for the basic comprehensive cover.

Mr. Jaydeep faced a similar ‘catch 22’ sort of a situation – on the one hand, he wanted the extra protection and on the other hand, he did not know if it was worth it.

Mr. Jaydeep consulted a number of his friends and though many of them advised him against the zero-dep. cover, one of his family members told him that he should indeed purchase the extra cover. Why? Because Mr. Jaydeep owns a Germany luxury car which is known for it’s supreme engineering and quality craftsmanship.

However, it was also known for extremely expensive spare parts; thus, even the slightest scratch would cost him exorbitant amount of money. Keeping this in mind, Mr. Jaydeep’s relative pointed out that in case of a car insurance claim, he might have to cover substantial repair costs in the future due to the deficit in cover arising due to depreciation.

Keeping his faith in the advice of his relative, Mr. Jaydeep purchased the additional cover. He went on for 5 or 6 years without ever needing to make a claim. However, one day while making his way to work, a youngster who was on a joyride with his friends crashed his car into Mr. Jaydeep’s vehicle.

However, instead of being upset, Mr. Jaydeep was calm and composed. He knew that his zero-depreciation cover would provide 100% compensation. He simply informed his car insurance company and followed the predefined formalities. Within a couple of weeks, his car was back to its mint condition.

Also, since Mr. Jaydeep had opted for the NCB protection add-on, his 50% discount on renewal was still valid.

This is why opting for a Zero Depreciation Cover was the right choice for Mr. Jaydeep. So if you too are in the market for a car insurance policy, it makes sense to opt for the zero-depreciation cover- as it would provide you with an extra safety net that you badly need. Good luck and all the best!

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Author: Pranit Kamble

Pranit Kamble

Member since: Dec 06, 2018
Published articles: 2

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