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Q1. Should I buy zero-depreciation car insurance?
Ans: You should consider buying zero depreciation car insurance if your car is new or a luxury one, you drive in highly dense traffic areas, and you want the maximum claim payout with minimal out-of-pocket expenses.
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Q2. What is the premium for zero depreciation car insurance?
Ans: The cost of the zero depreciation add on in car insurance is generally higher than a standard comprehensive motor insurance plan. It depends on various factors, such as the car's age, its make & model, are of vehicle registration, claim history, etc. You can easily check the premium for zero dep cover using the car insurance calculator.
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Q3. Is bumper to bumper and zero dep insurance same?
Ans: Yes. Zero depreciation is also known as bumper to bumper or nil depreciation add-on in a car insurance policy.
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Q4. Do I get No Claim Bonus in a zero-dep car insurance policy?
Ans: Yes. For every claim-free year, the no claim bonus in your car insurance policy gets accumulated as per NCB slabs set by IRDAI.
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Q5. What is the Insured Declared Value in a nil depreciation car insurance policy?
Ans: IDV is equal to the sum assured value that the policyholder gets in case of theft or total loss of the insured vehicle. It is the vehicle's listed price minus the depreciation of the vehicle and its parts over time.
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Q6. On what factors does my zero-depreciation car insurance policy premium depend?
Ans: It mainly depends on the age of the car to be insured, its make and model, as well as the geographical location.
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Q7. How to know if my car insurance is zero dep?
Ans: You can verify whether you have zero dep car insurance by looking for 'Zero or Nil Depreciation Add-on' mentioned in your policy papers or by directly contacting your insurance company.
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Q8. Is zero dep available after 5 years?
Ans: Yes. You can opt for a zero depreciation car insurance policy for your vehicle aged between 5 and 10 years. However, it depends on whether the insurance company offers the zero-dep policy for cars older than 5 years and the specific terms and conditions of the policy.
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Q9. Should I buy zero depreciation car insurance after 7 years?
Ans: Buying zero depreciation cover for your 7-year-old car is completely up to you. This add-on covers the total cost of repairs, even for older vehicles, without considering the vehicle depreciation, which is especially beneficial for expensive part repairs. However, it's important to note that a zero dep add-on comes with a higher premium than standard comprehensive car insurance. Ultimately, purchasing this cover depends on your insurance requirements and budget.
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Q10. Can I transfer the zero depreciation insurance to another owner?
Ans: Yes. A zero depreciation car insurance can be easily transferred to another individual, provided it is for the same car. This is because this coverage is for the vehicle and not the owner.
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Q11. How to know if my car insurance policy has zero dep cover?
Ans: To check if your car insurance has a zero dep cover or not, you can refer to your policy documents. If it is a part of your policy, it will be mentioned under add-ons.
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Q12. Does zero dep affect No Claim Bonus (NCB)?
Ans: No, the zero depreciation cover in car insurance doesn't affect your No Claim Bonus (NCB). With every claim-free year, the insurer rewards you with the applicable NCB.
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Q13. Are engine damages covered under zero dep?
Ans: No, damages to a car's engine or its parts are not covered under the zero depreciation insurance. You need to opt for a separate add-on, i.e., Engine Protection cover, for coverage against engine damage.
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Q14. Can I opt for the zero dep cover with third party insurance?
Ans: No, the zero depreciation add-on cover is available only with a comprehensive or own damage car insurance policy.
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Q15. Is it worth buying zero depreciation car insurance?
Ans: Adding the zero depreciation cover to your car insurance is beneficial, particularly for new or luxury cars. It increases the reimbursement amount and lowers out-of-pocket costs in case of a claim, offering peace of mind.
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Q16. What is the difference between IDV and zero depreciation?
Ans: While IDV (Insured Declared Value) is the current market value of the car, the zero depreciation cover is an additional cover a in car insurance policy with which you get complete compensation during a claim without any deduction. In contrast with a standard policy, the zero dep cover helps keep your car's IDV higher.
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Q17. Which car insurance is better, comprehensive or zero depreciation?
Ans: Yes, having a zero depreciation cover with a comprehensive four-wheeler insurance policy is highly valuable (especially for new or high-end cars) as it offers a higher claim amount without any depreciation deduction. On the contrary, a comprehensive car insurance plan offers a wide-ranging coverage in case of accidents, theft, fire, or third-party liabilities.
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Q18. How many claims are allowed with zero depreciation car insurance?
Ans: Most insurers allow 1-2 zero depreciation claims in a policy year. Some may offer unlimited claims with higher insurance premiums. It is best to read your policy terms & conditions to know the exact number of claims available under your zero dep cover.
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Q19. Can third-party car insurance be converted to zero depreciation?
Ans: No. A third-party car insurance policy cannot be converted into zero-dep car insurance. This cover can only be purchased with a comprehensive car insurance policy.
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Q20. Is tyre covered under zero depreciation insurance?
Ans: The standard depreciation for tyres and tubes is covered up to 50% under a zero depreciation add-on. Hence, you will be required to pay for the remaining 50% during claims. However, you can claim 100% for tyre or tube damages with a 'Tyre Protect' add-on.
