Zero Dep Vs Comprehensive Policy

What is Comprehensive Insurance?

Comprehensive car insurance offers more coverage, as it can protect your vehicle from loss or damage resulting from an accident, theft, natural disaster, vandalism, and other similar events. Additionally, comprehensive car insurance also covers third-party liability, including injuries to others and damage to other people's property.

Comprehensive insurance also offers liability coverage for personal accidents to the owner and driver. Comprehensive insurance often provides options for additional enhanced cover through add-on scopes, such as engine protection and roadside assistance.

What is Zero Depreciation Insurance?

Zero depreciation Insurance, also known as 'bumper-to-bumper' insurance cover, is an optional add-on coverage typically found in comprehensive policies. In the event of a claim, the insurer will pay for the full replacement or repair of damaged parts rather than taking depreciation into account. Hence, your claim amount would be higher as the impact of depreciation on certain parts will not be included in the claim.

Typically, the zero depreciation rider can be removed from the vehicle if it is less than five years old. There are, however, a few companies offering such cover even for cars more than 5 years old. Generally, the premiums for this additional coverage will be more expensive than those of a typical comprehensive policy.

The difference between Zero Dep and Comprehensive Policies

Here is a small rundown of the difference between the two:

Comparison: Comprehensive Car Insurance vs Zero Depreciation Car Insurance Add-On

Overall, suppose you are a new car owner seeking maximum coverage and are willing to pay a higher premium. In that case, the zero-depreciation insurance add-on is the best option for you. If you have an older vehicle or would like a more cost-effective option, comprehensive insurance remains a great choice.

FAQs

Is opting for a zero-dep car insurance add-on a good option?

Yes, if you have a new car, considering zero-dep is worthwhile. A zero dep policy offers higher claim amounts than a standard policy because it excludes depreciation factors, meaning repair costs can be reimbursed at a higher value.

Can you switch from a comprehensive policy to a zero dep policy?

Yes, you can. If your vehicle is no more than 5 years old, you can add on zero-depreciation cover to your policy at renewal or when you start a new policy. However, a few insurers will allow the switch

Will including a zero-depreciation cover in my policy waive the mandatory deductibles when settling claims?

No, as they indicate, compulsory deductions will occur every time you make a claim, so zero-depreciation cover will not exempt you from mandatory deductions.

Can I add Zero-Depreciation coverage to a third-party policy?

No, a third-party policy only covers damages to the third party or their property, not to the insured. You cannot add a zero-depreciation cover to a third-party liability policy.