The most common mistake people make while choosing insurance is that they do not take the zero depreciation cover. This is especially needed when you have a brand new vehicle as it gives you complete coverage for the entire value of the car without any depreciation for the first two years. In this way, you can protect the value of your car by paying a slightly additional premium. Remember that it does not come by default and you need to add the cover separately along with your comprehensive insurance plan.
To begin with, you need to understand that your car starts losing its value the moment you bring it out of the showroom. The first thing that you usually get to know when you go to purchase the insurance coverage is that the glass of your vehicle, its rubber, and other components are not covered in the insurance. In this way, you lose about 10% of the value immediately despite your vehicle is brand new.
In the same manner, the vehicle loses value due to its age and overall condition the next year, when you go for the renewal of its insurance. This is where the zero depreciation cover comes into the picture and you can prevent such losses to your vehicle. You can approach car Insurance in Dubai to know more about the zero depreciation cover and they will explain all the details about this additional coverage for your car.
What is Zero Depreciation Car Insurance?
By adding zero depreciation cover, your vehicle gets covered for its full value that you have paid while buying it. This continues for the first two years and you will be compensated completely for any damages that happen to your vehicle during this period. Even though it costs additional money, but that money is worth paying as the overall cost of your vehicle remains high as compared to the normal insurance premium.
Which is Suited for Your Vehicle?
Imagine a situation when you have a new car and it has got some damages due to accident or other issues. In this scenario, let us analyze the different benefits offered by various plans available in the market. This can give you some idea about which coverage to choose for your car.
- This is the most basic coverage opted by majority of people. The biggest reason for this choice is that it is the least expensive among all the options available in the market. For this reason, many people fall into this trap without realizing how much money they will be losing in the future when something goes wrong with their vehicle.
- In this coverage, your own vehicle will not get any coverage for damages due to accident or other problems. However, if your vehicle is involved in an accident and damage has also happened to the third-party life or property, it can get coverage till a certain extent.
- However, this type of car insurance may be suited when your vehicle is very old and it has lost all value due to depreciation.
- In this plan, you can get coverage even when the vehicle is damaged due to non-collision and is useful even when there is damage due to fire accident or other natural calamities.
- The main reason why people avoid such comprehensive car insurance is that they do not want to pay higher rates for such coverage. Remember that this type of insurance costs more than third-party car insurance.
- As you get complete protection for any damage that may happen to your vehicle, this type of insurance is the best option for your new vehicle and you should always prefer such coverage for your expensive car. Even when your car is old, you should choose such plans if your vehicle is in good condition and if you are likely to use it for many years in the future.
- The only drawback of this plan is that it only offers coverage for the insured value of the vehicle and some components like rubber, fiber, nylon, and plastic are not included in the coverage. In this manner, when your vehicle is damaged due to an accident, you may have to pay some money from your pocket to restore the vehicle to its previous condition.
Zero Depreciation Coverage
This is by far the best option you can choose for your vehicle along with the comprehensive insurance plan. Remember that zero depreciation is an additional cover that can be added to comprehensive plans. This ensures that the natural depreciation factor for the vehicle is not considered and your car gets complete value for the initial two years. This can be added to the car insurance cover and it will enhance the protection for your vehicle.
Amazing benefits of Having Zero Depreciation for Your Car
- It becomes very inexpensive and easy to restore your car to normal condition after an accident as the coverage is given for the entire vehicle.
- The higher cost of premium you pay for zero depreciation cover is completely justified considering the amazing benefits of this plan. You can even get roadside assistance during vehicle breakdown and this helps you to get your car to the garage.
- Many companies in Dubai even extend this coverage for off-road activities and this is useful when your vehicle is damaged during adventure sports activities or during the off-road trip.
- This is the best option for new and expensive cars as you can get complete security for them and you get complete compensation for any damage that happens to your vehicle. In the event of damage due to natural calamities, you may lose the entire asset and having zero depreciation cover means that you get enough compensation to buy a new vehicle without any hassles.
In this manner, you can approach Car Insurance in Dubai and get the best policy for your vehicle. You can visit the leading online portals that provide vehicle insurance and cover your requirements in a detailed manner. You can also call the company executives and get additional information about the policy. This gives you further insights about important aspects like zero depreciation and you can get the maximum coverage for your vehicle.