What is the meaning of zero depreciation in car insurance?

Meaning. A zero dep cover is an add-on in car insurance under which we won't charge you for depreciation during the claim settlement. In simple words, you are not required to pay for the depreciation cost while making a claim. A comprehensive policy provides coverage for own damage and damages caused to the third party …

What is difference between IDV and zero depreciation?

IDV is the maximum amount that you can claim against total damage, loss or theft of your car. Thus, the more is the IDV, the more will be the premium towards a zero depreciation add-on cover. In general, the premium for a zero depreciation add-on cover is 10 -20% more than a standard comprehensive policy.

Is bumper to bumper same as zero depreciation?

No, bumper-to-bumper cover and zero depreciation cover in car insurance are not different. These are just different names for the same car insurance add-on cover. This add-on protects you from the depreciation value of your insured car.

What is the use of zero depreciation?

Zero depreciation means – If you have nil depreciation cover then you can claim the total cost of replacement of car parts in case of accidental damage. The depreciation value of the damaged parts won't be deducted from the claim amount. Thus, it helps you save a huge amount.

What is difference between IDV and zero depreciation?

IDV is the maximum amount that you can claim against total damage, loss or theft of your car. Thus, the more is the IDV, the more will be the premium towards a zero depreciation add-on cover. In general, the premium for a zero depreciation add-on cover is 10 -20% more than a standard comprehensive policy.

Which car insurance is best for zero depreciation?

Most of the car insurance companies allow up to 2 claims under zero depreciation add-on. However, IFFCO Tokio General Insurance Company, Royal Sundaram General Insurance, and New India Assurance allow unlimited zero depreciation claims.

Is bumper to bumper same as zero depreciation?

Thus, a zero depreciation cover is highly beneficial for all car insurance buyers. Please note that Zero depreciation cover is also popularly known as a bumper-to-bumper cover or nil coverage, so these terms are often used interchangeably.

What is the difference between zero DEP and third party insurance?

The fundamental difference when it comes to Third-party Car Insurance Policy vs Zero Depreciation Cover is that of a 'Policy' and an 'Add-on'. A Third-party Liability Plan is an insurance 'policy' whereas a Zero Depreciation Cover is an 'add-on', and not a stand-alone policy.

Is higher IDV better?

A lower IDV of a car implies that its premium will also be lower and a higher IDV of a car will result in a higher premium. Thus, IDV is the most important factor used by insurance companies to determine the premium of a motor insurance policy.

How much IDV should I choose?

Generally, the depreciation charged on a new car is about 5% and thus, the default maximum IDV of a new car stands at 95% of the invoice value of the car.

Should I keep high IDV?

While deciding one way or another, you must understand that own damage premium is just 2-3% of the IDV. Thus, increasing or decreasing the insured declared value does not lead to an immense change in your premiums. To ensure maximum financial security, keeping your policy's IDV as high as possible is recommended.

What do you mean by bumper to bumper insurance?

Bumper-to-bumper insurance is simply the comprehensive motor insurance policy to which the zero depreciation add-on is added. Under bumper-to-bumper insurance plans, the claim amount is higher because the insurer does not deduct depreciation from the parts of the vehicle that have been repaired or replaced.

What is the popular name for zero depreciation car insurance policy?

Zero depreciation cover is also known as bumper to bumper or nil depreciation cover. With zero depreciation coverage, the insured does not have to pay the depreciation value of the damaged or replaced parts and the policyholder can claim.

Is bumper to bumper same as own damage?

Whereas a basic or third party policy covers damage to the third party or their vehicle in case of an accident, bumper to bumper insurance offers coverage to your vehicle as well. Bumper to bumper insurance covers the value of the external part of the body, it doesn't take internal parts' value into scrutiny.

What is the difference between bumper to bumper?

Comprehensive car insurance covers specific risks that bumper-to-bumper does not. Bumper to bumper insurance covers damages that are to the front, back, and sides of the vehicle. Comprehensive coverage also includes protection against theft, vandalism, and fire.

What is the use of zero depreciation car insurance?

Zero depreciation means – If you have nil depreciation cover then you can claim the total cost of replacement of car parts in case of accidental damage. The depreciation value of the damaged parts won't be deducted from the claim amount. Thus, it helps you save a huge amount.

What is the difference between zero DEP and third party insurance?

The fundamental difference when it comes to Third-party Car Insurance Policy vs Zero Depreciation Cover is that of a 'Policy' and an 'Add-on'. A Third-party Liability Plan is an insurance 'policy' whereas a Zero Depreciation Cover is an 'add-on', and not a stand-alone policy.

How does zero depreciation differ from own damage?

A zero depreciation is an additional cover that policyholders can purchase along with their own damage or a comprehensive car policy only. This add-on can be purchased by paying some extra premium amount to cover the depreciation sustained by the insured car as per its age.

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