Zero Depreciation Cover: Meenal Goel Reveals the Ultimate Insurance Tip

Car accidents may be stressful, and dealing with insurance claims can worsen the situation. Many people believe that having a normal insurance policy will cover all repair costs, however, this is not always true. In a recent video, finance expert Meenal Goel explains how most insurance companies reduce depreciation fees from the claim amount.

The Problem: Depreciation Deduction

Suppose your car is 4 years old and costs ₹3 lakh. Even with insurance, you may have to spend ₹1.8 lakh out of pocket. This is because insurance companies base depreciation on the vehicle's age and parts.

Solution: Zero Depreciation Cover

Meenal advises buying zero depreciation (zero funds) add-on cover along with your insurance policy. This also ensures that the insurance company does not deduct depreciation expenses from your claim. This cover allows you to take 100% of the cost of repairs at no additional cost.

For example, if your car is 4 years old and costs ₹3 lakh:

• Other than Zero Depreciation: You pay ₹1.8 lakh because of depreciation deductions.
• With Zero Depreciation: The insurance company pays the entire ₹3 lakh, and you pay nothing.

Why Choose Zero Depreciation Cover?

• Covers all costs associated with repairs or replacement of parts.
• It protects you from unexpected costs after an accident.
• Ideal for 5-year-old vehicles.

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In the event of an accident, an ordinary car insurance plan might not be sufficient to cover all expenses. You can save a great deal of money and trouble by adding zero depreciation coverage. For total peace of mind, make sure to include this add-on when you renew or purchase car protection in the future.