Following is the impact of zero depreciation/nil depreciation/bumper to bumper insurance.
Age of Car | Depreciation Rate Without Zero Depreciation Cover | Depreciation Rate With Zero Depreciation Cover |
Under 6 months | Nil | 0% |
6 months to 1 year | 5% | 0% |
1-2 years | 10% | 0% |
2-3 years | 15% | 0% |
3-4 years | 25% | 0% |
4-5 years | 35% | 0% |
5-10 years | 40% | 0% |
Above 10 years | 50% | 0% |
Part of Car | Depreciation Rate Without Zero Depreciation Cover | Depreciation Rate With Zero Depreciation Cover |
Paint work / Rubber / nylon / plastic parts, tires and tubes, batteries and airbags parts | 50% | 0% |
Fibre glass parts | 30% | 0% |
Glass parts | Nil | 0% |
How is Zero Depreciation Car Insurance Premium Determined?
1. Car’s Age and Model:
The age and model of your car significantly impact the premium. Newer and high-end models usually have higher premiums due to the higher cost of their parts and repairs.
2. Insurance Provider:
Different insurance providers have different methods of calculating premiums. It’s advisable to compare quotes from various insurers to get a good deal.
3. Location:
Your geographical location plays a part too. Areas prone to accidents or thefts might have higher premiums.
4. Claim History:
Your claim history can also influence the premium. A clean claim history may lead to a lower premium.
5. Add-On Covers:
If you opt for additional covers along with the zero depreciation cover, the premium will increase accordingly.
6. Frequency of Policy Purchase:
Some insurers increase the premium if you opt for zero depreciation cover consecutively in policy renewals.
7. IDV (Insured Declared Value):
The IDV of your car is the maximum amount you can claim under the policy. Higher IDV can lead to a higher premium.
8. Policy Terms and Conditions:
The terms and conditions of the policy, including the coverage, exclusions, and add-ons, also play a part in determining the premium.
9. Engine Capacity and Type:
- Cars with higher engine capacity may have higher premiums as the repair costs for such vehicles are usually higher.
- Understanding these factors will help you get a clearer picture of how your Zero Depreciation Car Insurance premium is calculated.
How to Buy Zero Depreciation Car Insurance?
Purchasing a Zero Depreciation Car Insurance is a wise decision as it ensures a higher claim amount in case of damages. Here's a systematic guide on how to buy this insurance:
1. Understand Zero Depreciation Cover:
- Before you buy, understand what Zero Depreciation Car Insurance entails. It provides comprehensive coverage without accounting for depreciation, ensuring you get a higher claim amount.
2. Online Research:
- Look for insurance providers that offer Zero Depreciation cover online. Compare the features, benefits, and premiums of different policies using comparison tools.
3. Choose a Reliable Insurer:
- Opt for an insurer with a good claim settlement ratio, positive customer reviews, and a solid online presence for ease of policy management.
4. Get Quotes:
- Obtain quotes from multiple insurers. Fill in the required details accurately to get a precise quote.
5. Review Coverage and Exclusions:
- Examine the coverage, exclusions, and the terms and conditions of the policy. It's essential to know what is covered and what is not.
6. Consider Additional Covers:
- Assess if you need additional covers like engine protection, roadside assistance, etc. These add-ons will increase the premium but provide extra protection.
7. Fill in the Details:
- Provide all necessary details such as personal information, car details, and previous insurance information accurately.
8. Payment:
- Once satisfied with the chosen policy, proceed to make the payment through a secure online payment gateway.
9. Review Policy Document:
- After the payment, you will receive the policy document via email. Review it to ensure all details are correct.
10. Download and Print the Policy:
- Download a copy of the policy for your records. It's advisable to keep a digital copy on your phone and a printed copy in your vehicle.
11. Consult with an Advisor:
- If at any point you find the process confusing, consult with an insurance advisor. They can guide you through the process and help you make an informed decision.
The process of buying Zero Depth Car Insurance is quite straightforward, especially online. The key is to understand what you are buying, compare different policies, and choose an insurer that meets your needs and budget.
How to Renew Zero Depreciation Car Insurance?
Renewing your Zero Depreciation Car Insurance is crucial to ensure continuous coverage and peace of mind while on the road. Here’s a simplified guide to help you through the renewal process:
1. Review Current Policy:
- Before renewal, review your current policy to understand the coverage, benefits, and any exclusions. Assess if the policy still meets your needs or if you require additional coverage.
2. Check Renewal Reminder:
- Usually, insurance companies send out renewal reminders via email or SMS. Keep an eye out for these reminders which may also contain instructions for renewal.
3. Online Renewal:
- Visit the insurer’s website or use their mobile app for renewal. Log in with your credentials and navigate to the renewal section.
4. Update Information:
- Update any changed information such as address, contact number, or any other relevant details. It’s important to keep your information current to avoid any issues during a claim.
5. Compare Other Offers:
- It’s wise to compare other offers available in the market. Use online comparison tools to compare premiums and coverage offered by different insurers.
6. Consider Additional Coverage:
- If needed, opt for additional coverage or add-ons like roadside assistance, engine protection, etc., to enhance your policy.
7. Check Discounts:
- Look for discounts or offers that may be available during renewal. Some insurers offer discounts for a good driving record or for installing safety devices in your car.
8. Make Payment:
- Once satisfied, proceed to make the payment for renewal through a secure online payment gateway.
9. Review New Policy Document:
- After payment, you will receive a new policy document via email. Review it to ensure all details are correct and the coverage is as per your requirements.
10. Download and Print:
- Download a copy of the new policy document for your records. Keep a digital copy on your phone and a printed copy in your car.
11. Consult an Advisor if Necessary:
- If you have any doubts or find the process confusing, consider consulting with an insurance advisor who can guide you through the renewal process.
The process of renewing Zero Depth Car Insurance is now more streamlined thanks to online platforms provided by insurance companies. Ensuring a timely renewal will help you maintain uninterrupted coverage and drive with peace of mind.
What is the Cost of A Zero Depreciation Cover? What Makes it Worth the Price?
In most cases, the zero depreciation cover costs approximately 15%of the insurance premium. Though it may seem like a steep price for an add-on cover, it is worth the cost as the compensation amount will prove to be significantly higher than the premium. A zero depreciation insurance calculator can help you estimate the cost of a zero dep cover.
Things to Keep in Mind About the Zero Depreciation Add-on Cover?
These are a few things to keep in mind when purchasing zero depreciation car insurance:
- This add-on is available only for cars that are less than five years old.
- The Zero-Depreciation Cover does not deduct the compulsory deductibles of the policy.
- There is a limited number of Zero depreciation claims within a year.
- Zero Depreciation cover and the bumper to bumper cover offer the same coverage.
Conclusion
Wrapping up, Zero Depreciation Car Insurance means you get more money if your car gets damaged. Yes, you might pay a bit more at the start, but if something happens to your car, it's totally worth it. Think of it as a safety net for your pocket. If you don't want any nasty surprises after a bump or scratch, this is the way to go!
