What is zero DEP?
Asked by: Madilyn Boyer | Last update: August 17, 2022Score: 4.2/5 (55 votes)
Zero Depreciation is also known as Nil Depreciation or Bumper to Bumper cover that leaves out the 'depreciation' factor from the coverage. It basically means that if your car or bike gets damaged following a collision, no depreciation is subtracted from the coverage of wear and tear of any body parts of your vehicle.
What is the benefit of zero DEP?
With zero depreciation coverage, the insured does not have to pay the depreciation value of the damaged or replaced parts and the policyholder can claim. It applies to vehicles that are less than 5 years old and the policyholder can avail of it twice during the policy tenure.
What is not covered by zero depreciation 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 it worth taking zero depreciation?
Zero-depreciation is a good deal even if you have to pay a little extra. It will pay for itself many times over when you meet with an accident. You will be glad you decided on the zero-depreciation policy when you are presented with a bill from the garage.
Do we need zero DEP insurance?
A zero depreciation cover is an optional addon you can opt for in your car insurance policy. Having this addon in your plan ensures your insurer won't charge for your car's depreciation during claims and hence, you won't be liable to pay for the cost of depreciation of your car's parts during claims.
Zero Dep Insurance क्या होता है ? No Claim Bonus क्या होता है? Zero Dep| Sumit Choudhary
Can 0 DEP be insured after 5 years?
Depreciation for calculating IDV
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.
How is zero depreciation calculated?
Normally the zero depreciation cover premium would be a percentage of the Insured Declared Value of the car. Covers the entire claim cost including the depreciation costs. The cost of depreciation is not deducted from the final claim bill.
Which company gives zero DEP insurance after 10 years?
IFFCO Tokio offers its zero depreciation cover for all cars not older than 10 years.
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.
Are Tyres covered in zero DEP insurance?
A zero depreciation add-on covers all parts of your car at 100% except tyres, tubes and batteries which are covered at 50%.
Is TYRE covered under insurance?
Is tyre and tube repair cost covered under comprehensive car insurance? Motor insurance covers tyre and tube when the vehicle has met with an accident. However, comprehensive car insurance doesn't cover tyre and tube damages when the vehicle has not met with an accident.
Should I increase IDV value?
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. As your car grows older, the IDV decreases as it is.
Is bumper covered in zero depreciation?
Bumper to bumper car insurance or full-body insurance provides full coverage for all rubber, fibre, and metal parts of your car without deducting the depreciation value. However, it will not cover engine damage resulting from oil leakage or water ingression.
Does IDV matter in car insurance?
The IDV is the key to the amount of motor insurance premium that you will pay for your car insurance. This is because IDV reflects the current market value of your car and mirrors the liability of your motor insurance company at the time of claim settlement.
What is IDV value?
What is Insured Declared Value (IDV)? The term 'IDV' refers to the maximum claim your insurer will pay if your vehicle is damaged beyond repair or is stolen. Suppose the market value of your car is Rs. 8 lakh when you buy the policy.
Is painting covered in car insurance?
Various factors go into deciding whether you can or should claim insurance on your car body/paint repairs namely: Extent of damage: as a thumb rule, consider insurance claims only if repair and painting is needed for more than 2 body panels (or Rs 6000+ in repair charges)
Is clutch plate covered under insurance?
The policy does not cover damage to the car engine due to water ingression or oil leakage, and standard wear and tear to components such as tyres, clutch plates, bearings, etc.
Can we do Bumper to Bumper insurance after 5 years?
Since the depreciation of a car is directly related to its age and usage, the older a car, the higher the premium that you shall have to shell out for its bumper to bumper cover. It is important to note here that you cannot purchase bumper to bumper insurance for cars that are older than 5 years.
Is Dent covered in car insurance?
In a nutshell, small dents/scratches on your car's surface does not require a car insurance claim. In fact, it is best to refrain from raising a claim in such a scenario, as you may otherwise lose a lot of money.
How do I know if my insurance is zero DEP?
You can easily calculate zero depreciation car insurance premium calculator available on the websites of car insurance online to know the amount of premium you will bear.
Does zero DEP cover paint?
If you have opted for an add-on cover such as zero depreciation also known as 'Nil-Dep cover', you need not pay for any depreciation charges towards motor repairs which include painting, rubber part replacement, glass or fiber replacement.
Does zero DEP cover plastic parts?
Zero Depreciation – What Does It Cover? This Add-On cover offers 100% coverage for all kinds of fibre, rubber, plastic, and metal parts without deducting any amount by way of depreciation.
How many times insurance can be claimed?
Generally, there are no restrictions on the number of claims you can make under the car insurance policy in a year. However, one should remember that the car insurance claim affects the NCB (No Claim Bonus). Repeated claims in a year may also increase the premium when you renew the policy.