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Comprehensive vs Zero Depreciation Policy: What’s the Difference?‼️ Insurance Tips ✅️ #insurancetips
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Comprehensive vs Zero Depreciation Policy: What’s the Difference?
What is Comprehensive Car Insurance?
The term ‘comprehensive’ signifies inclusivity. If you seek to understand this type of car insurance through its name, you may note that it is a policy that offers a bouquet of multiple fundamental policies. Usually, your comprehensive insurance includes third-party liability cover as well as own damage cover. Furthermore, you are also given the option of adding a personal accident cover to this bouquet,
Thus, a basic comprehensive insurance policy is more than a third-party insurance and can be enhanced further by choosing add-ons. One of these add-ons is zero depreciation cover.
What is Zero Depreciation Cover?
Imagine a situation where you want to claim your own damage cover. This would be a situation where your car is damaged due to some mishap and needs repairs. If you own a vehicle, you are probably aware that the value of your vehicle as well as the value of its parts depreciates over time.
Thus, in a situation where you are required to claim your own damage cover, you may receive only the value after depreciation. Thus, the older your vehicle, the more it has depreciated and the lesser the pay-out you will receive.
What is Comprehensive Car Insurance?
The term ‘comprehensive’ signifies inclusivity. If you seek to understand this type of car insurance through its name, you may note that it is a policy that offers a bouquet of multiple fundamental policies. Usually, your comprehensive insurance includes third-party liability cover as well as own damage cover. Furthermore, you are also given the option of adding a personal accident cover to this bouquet,
Thus, a basic comprehensive insurance policy is more than a third-party insurance and can be enhanced further by choosing add-ons. One of these add-ons is zero depreciation cover.
What is Zero Depreciation Cover?
Imagine a situation where you want to claim your own damage cover. This would be a situation where your car is damaged due to some mishap and needs repairs. If you own a vehicle, you are probably aware that the value of your vehicle as well as the value of its parts depreciates over time.
Thus, in a situation where you are required to claim your own damage cover, you may receive only the value after depreciation. Thus, the older your vehicle, the more it has depreciated and the lesser the pay-out you will receive.
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