How zero depreciation premium is calculated?

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 current market value of the vehicle minus the vehicle registration cost and depreciation value of the vehicle parts.

How do you determine zero depreciation insurance?

Zero depreciation is a car insurance add-on cover that makes the insurance companies settle the claim amount without taking the depreciation on various parts of the car into consideration, which enhances the claim amount of the policyholder.

Is zero DEP insurance worth buying?

As far as possible it is advisable for new cars (up to three years) to opt for zero-depreciation car policy. Better to pay a little more (premium) than to pay a lot more (repairs). Zero-depreciation is a good deal even if you have to pay a little extra.

Can I get a zero depreciation car insurance after 5 years?

However, for vehicles older than five years, or the models that are discontinued by the manufacturer, such an IDV is decided mutually by the insurance company and you, the policyholder. Thus, the cover for zero dep car insurance after 5 years is not available generally.

How many times can you claim 0 DEP?

You can claim zero depreciation car insurance a maximum of two times during the tenure of your car insurance plan.

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

1. Cars older than 10 years old. This is one of the first things that are excluded from the cover of zero depreciation car insurance policies. If your car is older than 10 years old, it cannot be covered by a zero dep car insurance policy.

Is bumper to bumper same as zero depreciation?

Zero depreciation cover and bumper to bumper cover are the same thing. They are just two names for a car insurance add-on which insures a policyholder against the depreciation cost of his/her insured’s car. Zero Depreciation or Bumper to Bumper plan covers the full cost of replacement.

Can I get zero depreciation insurance beyond 7 years?

Best-Suited for –The Zero Depreciation cover is only applicable to new cars up to five years old. If your car is more than five years old, you should consult your insurer for a suitable course of action. For cars older than 5 years, zero-dep is offered but only from offline sources.

How many times can you claim zero DEP?

Ved explains, “A zero-depreciation cover is best suited for car owners who want to reasonably utilize their insurance and not waste money on the depreciation of car parts.” A zero-depreciation cover applies to vehicles that are less than 5 years old and the policyholder can avail of it twice during the policy tenure.

Can I get a zero depreciation car insurance after 7 years?

Under a 7-year zero dep cover, the insurance company will cover the amount of depreciation incurred by the insured car for up to 7 years of age. The insurer will compensate you for the amount of depreciation deducted on the value of the car parts to be replaced or repaired at the time of claim settlement.

Is higher IDV better?

At best, IDV is the maximum sum insured amount that the insurance company pledges to compensate for your loss. Getting an IDV that is close to the market value of your car is always the best bet. Decreasing the IDV value will result in lower premium but it also provides you with a lower coverage than is required.

How do I claim my Zero Depreciation car insurance policy?

Step 1: You must log in to your ACKO account by using your registered mobile number. Step 2: Find your Zero Depreciation Car Insurance policy and click “Claim”. Step 3: Answer a few questions to describe the claim in detail and submit the claim for further processing.

What is the difference between comprehensive and Zero Depreciation car insurance?

In a comprehensive car insurance policy, you will be required to pay for the cost of depreciation of your car’s parts during car insurance claims. A zero depreciation addon can be opted for all cars that are less than five years old. A comprehensive car insurance policy can be opted for all cars that are less than fifteen years old.

How much does Zero Depreciation add-on cover cost?

In most cases, the zero depreciation cover costs approximately 15%of the car 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. Things to Keep in Mind About the Zero Depreciation Add-on Cover?

What is depreciation in car insurance?

Depreciation in simple terms is the decrease in the value of your car. This reduction is due to its natural wear and tear with time. The older the car, the higher the depreciation. Insurers deduct the depreciation amount while settling the claims, which reduces the claim amount. What is Zero Depreciation?