Zero depreciation should you or should you not buy one

Zero Depreciation

Should you or should you not buy one?

What is Zero Depreciation?

What is Zero Depreciation?

Zero Deprecation or Bumper to bumper is an add-on that you

buy along with your car insurance. It covers you even for costs

of depreciated car parts when you make a claim.

Remember that this add-on is available only on comprehensive car

insurance and not with third-party liability cover.

What is Zero Depreciation?

Zero Depreciation or Bumper to bumper is an add-on that you

buy along with your car insurance. It covers you even for costs

of depreciated car parts when you make a claim.

Before we get on to understanding zero

depreciation add-on, let’s understand “depreciated

car parts”

What does Depreciation

mean?

Depreciation in simple terms means a monetary decrease in

the value of your asset (here your car) due to the wear and

tear and usage over the years.

At what rate do your car parts depreciate?

At what rate do your car parts

depreciate?

• For rubber and plastic parts of the car, battery, tyres / tubes etc.50%

• For fibre glass in your car.30%• For metallic parts depending on how old the

car is. 0-50%

At what rate do your car parts

depreciate?

• For rubber and plastic parts of the car battery, tyres / tubes etc.50%

This means that at the time of making a claim, you’d have to pay 50% of

the repair cost for rubber and plastic parts in your car.

Similar is the case with fibre glass and metallic parts also.

Let’s understand this with an example…

Let’s say, you own a standard hatchback which is 2 years old.Your car is damaged in an accident. You take it to the garage for repairs

and they slap a bill of Rs. 1,50,000 on you.

If you had just a comprehensive car insurance [without zero depreciation add-on] the insurance company will not pay for

car parts like tubes, fibre glass etc. These could amount up to Rs. 40,000 of the repair costs in this case.

If you had a zero depreciation add-on, you wouldn’t have to pay for even those depreciated parts. Barring the minimal deductions, your

insurance company will pay you, bumper to bumper.

Benefits of Buying a Zero Depreciation add-on

100% settlement of cost of the car’s repairs without considering

depreciation during an event of a claim.

No Depreciation01

This is different than having a normal comprehensive

policy. Your zero dep cover will pay you for damages

incurred by the glass, nylon, plastic etc. while normal

comprehensive policy won’t.

Better Coverage02

>

03

Your premium might increase if you opt for

zero dep cover. But it turns out to be

economical in the long run when you get

better coverage at the time of a damaging

accident.

Economical

What is not covered under Zero Depreciation?

What is not covered under

Zero Depreciation?

- Normal wear and tear

- Damages to accessories, bi-fuel kit

- Damages to the engine

- Damages due to uninsured peril, like drunk driving

- Damages because of mechanical breakdown

What factors should you consider before buying Zero Depreciation cover?

Zero depreciation cover offers

complete coverage without

considering depreciation. So the

premium rises slightly.

Increase In Premium01

There is a limitation for making a claim every year. Inquire

with your Insurer with the number of times you can claim

per year and avoid claiming for minor dents.

Number Of Claims02

03

This coverage is available only for new cars.

Doesn’t make sense to pay higher premiums

for a car as old as 5 years.

Only for New Cars

Is Zero Dep Cover Ideal For You?

Ask Yourself These Questions…

Is Zero Dep Cover Ideal For You?

Do you own a luxury car?

The parts of the car are expensive and so is the

depreciation on such parts.

Are you a new driver?

You are not confident on your driving skills.

Do you live in an accident prone area?

Chances of your car getting wrecked are more here.