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Everything you need to know about a no-consumption car insurance policy



 Everything you need to know about a no-consumption car insurance policy


Buying insurance for your car is not difficult. The low value of car insurance is the loss of asset value over time due to age, wear and tear, etc. Read this article for a no-consumption car insurance policy.

If your vehicle is damaged in the event of an accident, you may not be able to recover the full replacement expenses. Your company will not pay for the replacement parts until the depreciation amount has been deducted. You have to pay for the difference between the market value of new car parts and the parts consumed. It is recommended to take advantage of the low value of the car without value, yet you can get the most payment during the time of the claim and you can get the most out of your insurance policy. 


Everything you need to know about a no-consumption car insurance policy

Zero consumption cover helps protect your vehicle from all material damage to the vehicle without counting the consumption element. The standard policy against damages or loss of your vehicle covers you when you file a claim. Compensation is received after a standard depreciation deduction. Car insurance with zero consumption coverage can provide the full amount of compensation. This can be used for brand new cars and you can also choose at the time of policy renewal. In a zero-consumption four-wheel insurance policy, the insurance company pays the entire claim amount without considering consumption on the value of the vehicle. The add-on feature eliminates the possibility of any out-of-pocket expenses from the owner.


Benefits of free-to-consume car insurance coverage 

Since the cost of consumption is not taken into account during an application to settle the claim, auto insurance without consumption helps to reduce private expenses.

Without taking the depreciation amount, most of your claims for insured parts are settled.

Adds more value to your basic car insurance coverage.

Makes your investment almost zero.

How does zero depreciation cover differ from a normal hood?

1. Zero consumption does not affect the compensation settlement process and full compensation is granted. In the case of regular car insurance, the claim amount is received after depreciation is deducted.

2. The premium on regular car coverage is low compared to zero consumption coverage.

3. Zero depreciation coverage for new cars is intended. Regular car insurance coverage can be taken for cars over 3-4 years of age.


Who can buy zero depreciation coverage?

People with new and luxury cars.

Inexperienced drivers.

People living in accident-prone areas.

People who worry about small bumps and scratches.

People who have a car with expensive parts.

Take away

In order to protect your new car, it is recommended to choose zero consumption coverage. With this cover, you can be sure of complete peace of mind. You can save yourself a lot of trouble by buying zero consumption coverage. Remember that the zero depreciation policy applies to cars under the 3-year age limit.


Read also: 

How many car insurance claims can be filed per year?

Tips for maintaining road safety while driving

Disclaimer: This article is published in the public interest and is intended for public information purposes only. Readers are advised not to rely on the contents of the article as crucial in nature, and further research or expert consultation should be conducted in this regard.

Comprehensive insurance covers third-party liability and accident damage, while third-party car insurance covers risks of damage to a third person or your vehicle only. Choosing the right type of insurance is important to you. Read on to find out the difference between third party and comprehensive car insurance.

Table of contents

The difference between third party and comprehensive car insurance

Comprehensive Insurance

Comprehensive exceptions for car insurance

Third-party insurance coverage

Third-party car insurance benefits

Third-party car insurance exclusions 

Take away

Comprehensive insurance pays to repair or replace car damage caused by an accident. Third-party insurance covers damage and injuries to a third party. Choosing the right type of insurance is important because having at least basic insurance that provides coverage for third parties is mandatory and the absence of such a cover can lead to a violation of the law.


The difference between third party and comprehensive car insurance

Comprehensive Insurance

Comprehensive car insurance is a comprehensive car insurance policy. It covers the risks related to your damages. Comprehensive car insurance is a combination of third-party insurance and private damage insurance. It covers third-party obligations and the loss or damage of the vehicle from accidents, vandalism, fires, natural disasters, etc.


By purchasing them you also get personal accident coverage. Coverage can be amplified by purchasing additional covers. It also pays for damage from natural disasters such as hurricanes, earthquakes, floods, etc. Comprehensive insurance coverage is very popular because it provides full coverage.


A comprehensive insurance policy that protects your car from vandalism, theft, glass damage, damage from animals, fallen objects, rocket fire and damage from natural disasters such as a storm Wind, hurricane floods, etc.


Comprehensive exceptions for car insurance

Factors excluded from comprehensive insurance plan coverage are:


Wear and tear the car.

Depreciation.

Electrical or mechanical failure.

Damage to the tube and tires.

Damages caused by driving a driver without a valid license or driving under the influence of alcohol or drugs.

Third-party insurance coverage

It does not provide coverage of the cost of damage to your vehicle in the event of an accident and does not provide coverage for your vehicle if it is damaged or stolen. It provides coverage only against losses and damages it can cause to the property of a third party, a person. Losses or damage to a third party or third person are covered only, and no loss or damage to your vehicle is covered. Third-party insurance cover also provides personal accidents that protect you from death or injury.


Third-party car insurance benefits

Covers you of losses and damage to a third party due to your car.

It helps you drive legally on Indian roads.

Having a third-party car insurance protects your pockets from traffic fines.

Third-party car insurance exclusions 

Third-party insurance will not cover damage to the person's own car.

It will not cover for third-party claims if you find driving under the influence of alcohol, drugs or driving without a valid license.

Take away

The pros and cons of comprehensive and third-party insurance depend on many factors. If your car is devalued, you can buy third-party insurance where repairs and other damages can be easily managed. If your car is new and expensive, you must purchase a comprehensive insurance policy. A comprehensive insurance policy is expensive compared to a third-party insurance plan because it provides extensive coverage for injuries, damages and theft.



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