I am owner of Maruti Wagon R - 2001 Model. I always buy comprehensive car insurance. Around four years back my car was badly damaged due to a road accident, but I had to shell out 60% of the amount from my pocket as depreciation charge, even when my car had comprehensive cover. This year, I am looking to buy a depreciation cover for my old love. Please suggest me if it's worth in buying depreciation rider for an old car.
Thanks a lot!
Medhu
What is a Depreciation Cover?
In case of a partial loss to your car, the insurer promises to cover the depreciation amount on the damaged parts which are allowed for replacement.
In other words - "A depreciation rider based on the age of the car and type of components can save a lot of money. If the car's metallic part is damaged within six months of purchase, then no depreciation is deducted. But if these are damaged after six months and before one year, then five per cent is deducted as depreciation. That is, only 95 per cent of the claim will be paid here.
Tata AIg 's Depreciation Reimbursement Cover
The Depreciation Reimbursement Cover offers full claim without any deduction for depreciation on the value of parts replaced. The cover is available for vehicles upto years old and operates for maximum claims during the policy period.
The more premium you pay, more covereage you get. The same applies to depreciation rider. Check the premium you would have to pay.