Car insurance is a form of insurance that provides car owners with vehicle protection. When buying car insurance, car owners need to choose insurance products and understand the different types of insurance terms. This paper will make an in-depth analysis from the definition, scope of application, insurance liability, advantages and disadvantages of zero depreciation insurance.
Definition of zero depreciation insurance
Zero depreciation insurance is a type of insurance policy that pays the owner of the car at the price of the new car if the vehicle is crashed, damaged or stolen. Zero depreciation insurance is a kind of high-grade automobile insurance, and its insurance cost is relatively high.
The scope of zero depreciation insurance
Zero depreciation insurance applies to new or younger vehicles. In general, zero depreciation insurance is applicable to vehicles less than 2 years old or with a driving mileage of less than 20,000 kilometers.
Zero depreciation insurance liability
The insurance liability of zero depreciation insurance mainly includes the following aspects:
Vehicle collision loss
In the event of a collision, the insurance company compensates the owner for the damage at the price of the new car.
Vehicle damage
In the event of damage to the vehicle, the insurance company compensates the owner for the loss according to the new car price.
Vehicle theft
When a car is stolen, the insurance company reimburses the owner for the loss at the new car price.
The advantages and disadvantages of zero depreciation insurance
As a kind of high-grade automobile insurance, zero depreciation insurance has certain advantages and disadvantages.
advantage
Zero depreciation insurance can provide more comprehensive protection for the owner, and the insurance company compensates the owner’s loss according to the price of the new car, which can reduce the economic loss of the owner. At the same time, zero depreciation insurance can also improve the protection rate of vehicles and increase the second-hand transaction value of vehicles.
shortcoming
The insurance cost of zero depreciation insurance is relatively high, and the economic pressure on the owner is greater. In addition, zero depreciation insurance is only applicable to new or younger vehicles, and older vehicles cannot enjoy the protection of this insurance clause.
Zero depreciation insurance purchase advice
Before buying zero depreciation insurance, car owners need to consider the following aspects:
The use of the vehicle
The owner needs to consider the use of the vehicle, if the service life of the vehicle has been longer, or the mileage of the vehicle has been higher, then the purchase of zero depreciation insurance is not significant.
Affordability of insurance costs
Owners need to consider their own economic situation, if the insurance cost is too high, the financial burden on their own is too large, then the purchase of zero depreciation insurance is not a wise choice.
Details of the insurance policy
Before purchasing zero depreciation insurance, the owner needs to carefully read the insurance terms and understand the details of insurance liability, insurance coverage, claims process, etc., so that when the vehicle has an accident, it can obtain compensation from the insurance company in time.
Conclusion
Zero depreciation insurance is a kind of high-end automobile insurance, which is defined as a kind of insurance clause that the insurance company compensates the owner according to the price of the new car in the event of a collision, damage or theft of the vehicle. Zero depreciation insurance is applicable to new or younger vehicles, and its insurance coverage includes loss of vehicle collision, vehicle damage and vehicle theft. Before buying zero depreciation insurance, owners need to consider the use of the vehicle, the affordability of the insurance cost and the details of the insurance terms.
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