Zero Depreciation or Zero Dep. Insurance also called Nil Depreciation is the costliest & most beneficial policy available as on date. Here, additional premium is demanded over & above the premium charged for vehicle value.
This policy includes Comprehensive as well as Third Party Insurance. It rather is a extension of Comprehensive Insurance as it is an optional add-on, which can be opted to convert Comprehensive Policy to Zero Depreciation Policy. This policy compensates Third Party expenses as well as the repairing cost of the damaged vehicle – that too without any deductions for depreciation whatsoever.
It is available for new vehicles only for upto 3 years by most of the companies & 5 years by some companies. It does offers different options like :
- Normal Zero Dep. – Its the cheapest zero dep. version which covers damages to car body.
- Engine Zero Dep. – A bit costly as it additionally covers engine & engine fluids in addition to the above.
- Consumable Zero Dep. – Its the costliest version with maximum benefits & covering each & every part of the vehicle, even tyres too.
Additional benefits of Zero Dep. Policy are as follows :
- Emergency Transport & Hotel Expenses.
- Loss of Personal Belonging.
- Key Replacement.
- Roadside Assistance Cover (Offered by some, while some charge for it).
Other benefits may vary from company to company.