When you buy a new vehicle, then the insurance is made available by the company. Insurance provided by the company is valid for at least one year. After one year, the vehicle owner has to renew the insurance keeping in mind their needs.
In the event of an accident with the vehicle due to insurance, the burden of compensating for the loss does not spoil your budget.
If you have also covered zero depreciation cover in your motor insurance, then it can give you more benefit. Know how: –
What is depreciation
The parts and parts of the old car are worn down due to which the market value of the car also decreases. This is called depreciation. This is the reason that on renewing the car insurance every year, along with the value of the car, the amount of the insurance claim also decreases.
What is zero dep
Depreciation is not involved in deciding the value of a vehicle on taking a zero depreciation cover. If your vehicle is damaged in an accident, the insurance company pays the full amount of the claim. This is called ‘Zero Dep’ cover.
Keep these things in mind
If you take a motor insurance policy, then keep in mind that the premium increases by 20 percent on the add-on of the Zero Dep cover with the insurance policy.
Zero depreciation cover is available only on a new car or at least 3 years old. If your car is four years old, then you have to buy a general insurance policy.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.