Can We Get Zero Depreciation Insurance Beyond 5 Years?

When purchasing a Zero-Dep add-on cover, there are a few things to keep in mind.

  • Cost of Policy –A Zero Depreciation policy costs somewhat more than a comprehensive insurance policy because it provides complete coverage without taking into account depreciation.
  • The Zero Depreciation cover is only available for new cars that are less than five years old. If your vehicle is older than five years, you should speak with your insurer about the best course of action. Zero-Dep is available for cars older than 5 years, but exclusively from offline sources.

Which insurance company provides zero depreciation after 5 years?

Add-on coverage is included in every auto insurance policy. The zero depreciation add-on is the most popular among them. The zero depreciation add-on, also known as the bumper to bumper add-on or nil depreciation add-on, protects your car and its parts against depreciation. In the absence of zero depreciation, TATA AIG, like all other insurers, deducts the depreciation value on your car and its parts before admitting a claim, and therefore the policyholder bears the expense of depreciation.

Can I get a zero depreciation car insurance after 10 years?

Zero dep cover is a fantastic addition. It ensures that you receive bigger payments in the event of a claim and that repair costs do not break the bank. Even with zero dep insurance, though, there are a few things you are not protected for. These are known as exclusions, and you should be aware of them before purchasing a plan.

Cars older than 10 years old

This is one of the first things that zero depreciation vehicle insurance policies exclude from coverage. A zero deductible auto insurance policy will not cover your vehicle if it is older than ten years old.

Replacement of certain parts

Zero depreciation insurance normally excludes tyres, tubes, consumables such as oil, nuts, bolts, and some other parts. Before purchasing your policy, double-check this.

Mechanical breakdown

Many individuals believe that because mechanical breakdowns are frequently caused by wear and tear, zero depreciation insurance will cover them. Such situations, however, are not covered. Additionally, engine damage caused by water or oil leaks is not covered by zero depreciation insurance.

Total loss or theft

Only part replacement is covered by zero depreciation car insurance. It does not cover total car loss or theft. In this situation, the policyholder will be compensated depending on the car’s current market value.

Is it worth taking zero depreciation?

Depreciation is the loss of a vehicle’s worth over time due to wear and tear, as well as obsolescence. For example, the value of a new car acquired for INR 10 lakhs will depreciate with each passing year. If the car is one year old and the depreciation rate is 10%, the value of the car after one year is INR 9 lakhs.

The insurance company will compute the claim based on INR 9 lakhs if an accident occurs after one year. They will also have exclusions and deductions in the fine print that apply to the policy.

If your budget allows, a zero-depreciation car policy is always recommended for complete peace of mind. A single car accident will persuade car owners of the importance of having a zero-depreciation policy.

Consider the case of Mr. Desai, who was involved in a car accident. The car was fixed, and Mr. Desai paid a fee to the garage. Because Mr. Desai has a “comprehensive coverage,” he believes he will be compensated for the entire cost of the repairs. Mr. Desai discovers — far too late – that this isn’t the case. He is compensated after taking into account the car’s current worth as well as certain deductions.

Mr. Desai isn’t the only one who thinks this way. Many consumers believe that by purchasing a comprehensive vehicle insurance coverage, they will not be required to pay anything. Unfortunately, the policyholder will be responsible for a portion of the insurance company’s deductions.

Is TYRE covered under zero depreciation insurance?

Zero Depreciation does not cover mechanical failure or wear and tear of certain items like as tyres and brake pads. Any damage incurred as a result of either of these events is not covered by Zero Depreciation auto insurance.

Is depreciation waiver same as zero depreciation?

Delhi-based When Suresh Mehra’s new car was involved in an accident lately, he promptly filed an insurance claim. However, he was enraged to hear that, instead of receiving Rs 50,000 in damages compensation, his insurer only paid him 20% less. After all, he had purchased a comprehensive automobile insurance policy and was confident that the insurance company would cover the whole cost of the damage. That did not happen, and he received the claim compensation after a standard depreciation deduction. Mehra later discovered that if he had chosen a Zero Depreciation Cover, this would not have been the case.

Bumper-to-Bumper Cover, Nil Dep or Depreciation Waiver, sometimes known as Zero Depreciation Cover, is an add-on cover that retains the worth of your car without taking into account depreciation. It covers your car completely without taking into account age-related or damage-related depreciation in the value of parts replaced. As a result, in the event of an accident, this insurance protects you from having to spend a large sum out of your own cash to replace pieces of your vehicle.

Can I claim depreciation on my personal car?

If you buy a vehicle before September 30, you can claim depreciation of up to 15% of the purchase price for the full year. You may only claim 7.5 percent depreciation on a car purchased after October 1 since the taxman regards it as half a year.

How many times we can claim car insurance in a year?

In most cases, the amount of claims you can make under your automobile insurance coverage in a year is unrestricted. However, keep in mind that an automobile insurance claim has an impact on the NCB (No Claim Bonus). Repeated claims in a year may result in a higher premium when the policy is renewed.

However, if you choose a Zero Depreciation cover for your automobile insurance policy, the amount of claims you can make in a year may be limited. The number of claims that can be made under this policy vary according on the insurer.

Does IDV reduce every year?

The IDV claim, as well as its premium, decreases with each passing year due to the depreciation factor. The value of a new vehicle depreciates about 5% in the first six months of ownership. If a vehicle is older than five years, the price is set by mutual agreement between the two parties (car owner and insurer).

Is zero depreciation Same as Bumper to Bumper?

The terms “zero depreciation” and “bumper to bumper” are interchangeable. They’re only two names for a car insurance add-on that protects a policyholder from the depreciation of his or her insured’s vehicle. The Bumper to Bumper or Zero Depreciation plan covers the entire cost of replacement.

What is the meaning of ZD in car insurance?

In the context of car insurance, ZD refers to a Zero Depreciation coverage that covers the wear and tear of the vehicle as well as depreciation fees. In car insurance, ZD is a supplementary policy that is replaced by first-party or comprehensive coverage. As a result, by excluding the depreciation element from the insurance coverage, it aids in providing comprehensive coverage. It bridges the cost gap between the car’s real purchase price and the Insured Declared Value (IDV) at a given point in time.