What is The Car Insurance Depreciation Shield Cover?


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Car insurance in depreciation is the loss of value of the car with passing sands of time. Value of your car since the time you bought keeps lowering down. The car that you bought two years ago has diminished its value after two years, which is known as depreciation.

What is The Car Insurance Depreciation Shield Cover


What does the car insurance depreciation shield cover?

Sometimes your car may undergo wear and tear. Or let’s say one of the parts of your car needs to be replaced. What to do then? It certainly requires a high payable sum. In such cases, car insurance depreciation shield covers come to the rescue. The depreciation shield covers the amount of depreciation either entirely or partially.

The same applies to the damaged parts of the car during a repair. However, in case you have damaged your car completely, the depreciation shield cover cannot be applied. Car insurance Lake Charles or any other state does not offer complete reimbursement for the total damage of your car.

What are the benefits of car insurance depreciation?

Car insurance has many benefits. They cover most cases, and you will certainly gain an advantage from this shield cover.

  • Depreciation shield cover is helpful when your car suffers repairable losses due to natural disasters like floods, earthquakes, hurricanes and fire.
  • Many car insurance coverage companies offer facilities to their customers where they do not have to worry about third party liabilities because of the third party car insurance.
  • Car insurance covers also offer the facility of availing the benefits of the fellow-traveling with you in the car.
  • Your car insurance cover can also prove helpful in case of theft or any defect caused by any human.

Is there a zero depreciation car cover as well?

Zero depreciation cover offers you full reimbursement of the car in case of entire damage caused to your car due to any mishap, such as an accident.

Now there goes a smile on your face, right?

But wait a second before you make any haste.

To avail the benefits of zero depreciation car cover, you need to pay a high amount of premium. Yes, in general, the premium in normal car insurance depreciation shield is lower than the same of zero depreciation car cover. However, in the process that follows, the insurer is the one who pays the entire cost of repairing the car.

Zero depreciation car cover generally covers just new cars, which is the opposite of the normal car cover that covers the cars that are nearly 3-4 years old. Car insurance Lake Charles’ agencies can provide you with a brief on these details if you visit their site.

What are the things that should be kept in mind before considering for zero depreciation cover?

Look for a number of claims

To be on the safer side and prevent misuse, the insurer often puts a limitation on the number of claims in a year. Lest people would end up knocking the insurer’s door for every small injury done to the car. Thus, when going for zero depreciation car cover, make sure you go to the insurer only if the amount is big enough that it turns a tad more difficult for you to cover up.


Since zero depreciation car covers give you complete reimbursement, ensure yourself that you can easily pay the premium of the same on time. Prices of zero depreciation car covers are higher than the normal ones.

If the premium is for the new cars

Zero depreciation costs generally cover new cars. It is obvious to spend more amount of money on new cars than the ones that are 3-5 years old! The more value, the higher the maintenance of the car.

Now that you already know why insurance depreciation shield covers are important for you and also the tips on how to use them wisely and get one for yourself at the earliest. Because life is unpredictable, right?


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