Mumbai, Maharashtra, India:
Zurich Kotak General Insurance, provides insight on why car owners should go
for a depreciation cover in car insurance. Many car owners focus on the basic
coverage options when it comes to car insurance, such as third-party liability
and own damage insurance. However, there's another important aspect to consider
– depreciation cover. This add-on cover feature can provide significant
financial benefits in the event of a claim. Let’s explore the importance of depreciation
cover in car insurance and why you should
consider adding it to your policy.
What is depreciation cover?
Depreciation cover, also known as zero
depreciation cover, is an add-on cover that can be purchased along with your comprehensive
car insurance policy. The cost of depreciation is
deducted from the cost of repairing or replacing the parts at the time of claim
settlement. However, with this add-cover, you can enjoy a higher claim payout
without considering the depreciation factor for replacing damaged car parts
with new ones.
How does depreciation affect your car
insurance claim?
When you file a claim for damages to your car
in an accident, the insurer will typically consider the depreciation factor
while calculating the claim amount. However, with depreciation cover, insurer will
cover the entire cost of replacing damaged parts with new ones, regardless of
their depreciation value.
Why should you go for a depreciation cover?
There are several reasons why you should prefer
adding a depreciation cover along with your car insurance:
·
Maximise your claim
amount: With a depreciation cover, you'll get the
maximum benefit from your car
insurance policy.
·
Enhance your financial security:
A depreciation cover can provide an added layer of financial security,
protecting you from unexpected expenses in the event of a claim.
·
Increase your car's resale
value: By maintaining your car's value through a
depreciation cover, you can potentially increase its resale value in the
future.
Who should opt for a depreciation cover?
A depreciation cover is ideal for:
·
A depreciation cover can
help you maintain its value and minimise depreciation losses if you've recently
purchased a new car.
·
If you drive your car
frequently, you may be at a higher risk of accidents or damages. A depreciation
cover can provide added financial protection in such cases.
The final note
A depreciation cover is a valuable add-on
feature that can save your significant amount of money in the event of a claim.
By understanding the importance of depreciation cover and how it can enhance
your financial security, you can make an informed decision about adding it to
your car insurance.
About Zurich Kotak General Insurance
Company (India) Limited (Formerly known as Kotak Mahindra General Insurance
Company Limited)
Zurich
Kotak General Insurance Company (India) Limited is a 70:30 joint venture
between Zurich Insurance Group and Kotak Mahindra Bank. The Company got its new
name ‘’Zurich Kotak General Insurance Company (India) Limited’’ in the month of
August 2024, following Zurich Insurance Group’s 70% acquisition in Kotak
Mahindra General Insurance Company Limited. It is the youngest and one of the
fastest growing non-life insurance franchises in India.
Kotak
General Insurance was established in 2015 to service the growing non-life
insurance segment in India. The company aims to cater to a wide range of
customer segments & geographies offering an array of non-life insurance
products like Motor, Health, Home etc. As a practice, the company seeks to
provide a differentiated value proposition through customized products and
services leveraging state of art technology and digital infrastructure.