What is the meaning of zero DEP insurance?

What is the benefit of zero DEP insurance?

Zero depreciation meaning – 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.

How many times zero DEP insurance can be claimed?

Having a zero depreciation add-on as part of your plan ensures that during a claim settlement, you get your complete claim amount- without subtracting or accounting for your car’s depreciation. No, there is no limit no number of claims as long as the total claims amount is up to your sum insured.

Is TYRE covered under zero depreciation insurance?

Mechanical breakdown, along with wear and tear of certain parts like tyre and brake pads are not covered under Zero Depreciation. Any damage caused due to either of the two, also cannot be claimed under Zero Depreciation auto insurance.

What is difference between 3rd party and zero DEP?

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.

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What is IDV value?

IDV refers to Insured Declared Value and is the maximum sum assured fixed by the insurer that is offered in case of theft or total loss of a vehicle. In short, IDV is the current market value of your vehicle. … One should utilize a car insurance calculator for the said purpose.

How is IDV calculated on a new car?

IDV is calculated as manufacturer’s listed selling price minus depreciation. The registration and insurance cost are excluded from IDV. The IDV of the accessories which are not factory fitted, are calculated separately at extra cost if insurance is required for them.

Do we need zero depreciation?

New drivers who are not well-acquainted with driving should go for Zero-Dep as their chances of meeting with an accident is higher. To reduce the financial stress after accidents, zero depreciation cover is a must for new drivers. People who are living in accident-prone areas should also go for this add-on cover.

How do I know if I have zero DEP insurance?

Zero depreciation car insurance policy offers 100% coverage for all fibre, rubber and metal parts without deduction of depreciation. It does not cover engine damage due to water ingression or oil leakage. Any mechanical breakdown, oil change or consumables are also not covered in this policy.

Is higher IDV better?

Simply remember, the greater the IDV, the higher is the premium and vice versa. So if you haven’t calculated the IDV for your car, it will be nearly impossible to arrive at the OD premium. … That is simply because your car’s OD premium is directly proportional to the IDV; lower the IDV, less the premium you pay.

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Is zero depreciation Same as Bumper to Bumper?

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.

Which company gives zero DEP insurance after 5 years?

Higher Claim Amount: The TATA AIG zero depreciation enables you to claim a higher amount as it covers the 100% depreciation for all rubber, fibre, plastic and nylon parts of your vehicle. Please note that for tyres, tubes and batteries only 50% of the depreciation value will be covered by the insurer.

Can I claim insurance if I damage my own car?

So even if there is damage caused by natural calamities like floods etc. or even accidents to your own vehicle, you cannot claim compensation under your liability insurance. This is where the importance of own damage car insurance is realised.