Zero Depreciation Car Insurance Cover

Imagine you’re driving your car and you accidentally hit another. You’re okay but your car needs some serious repairs.

Key Features of Zero Depreciation Car Insurance:

• Simple Claim Process
• Road Side Assistance
• 7500+ Cashless Garage Network
• Retaining NCB from Previous Policy

Zero Depreciation: How to make the most of it!

Aren’t you glad you have car insurance and now the insurer will pay for it?

But what if you don’t get the claim amount you were expecting and have to pay some out of your own pocket? Not what you had expected, right?

This is what zero depreciation cover does to your claims.

What is depreciation?

With time and usage, each part of the car wears out. Owing to this, the value of these parts decreases as well. This depreciation is directly related to the age of the car. So, when you make a claim, the insurer calculates the value of your car or its part after factoring in depreciation, and only then do you get the settlement amount.

The rate of depreciation for all parts is as follows –

Subject to a deduction for depreciation at the rates mentioned below in respect of the parts replaced For All Rubber/ Nylon/ Plastic Parts, tyres, tubes and batteries 50% For Fibre glass components 30% For All Parts made of Glass Nil

The rate of depreciation for all parts including wood is as follows –

AGE OF VEHICLE % OF DEPRECIATION Not exceeding 6 months Nil Exceeding 6 months but not exceeding 1 year 5% Exceeding 1 year but not exceeding 2 years 10% Exceeding 2 years but not exceeding 3 years 15% Exceeding 3 years but not exceeding 4 years 25% Exceeding 4 years but not exceeding 5 years 35% Exceeding 5 years but not exceeding 10 years 40% Exceeding 10 years 50%

This means, if you make a claim of Rs 10000 for your 4-year-old car, the insurer will not pay more than Rs 6500. This is why every car should have depreciation reimbursement cover or add-on.

What is zero depreciation & how does it work?

As the name suggests, the zero depreciation / nil depreciation / depreciation reimbursement cover reimburses or compensates you the amount of claim that gets deducted due to depreciation.

Depreciation reimbursement cover can only be used for the first two claims in the policy period, so be prudent with your claims. But rest assured, in a claim where no parts are replaced and thus therefore no depreciation has been deducted, it won’t be counted as a claim under the cover.

What you need to know about bumper to bumper insurance

It does not cover normal wear and tear or even mechanical breakdown of your car. It covers all expenses incurred due to damage to car paint, rubber and plastic parts, batteries, tyres and so on.

The add-on only operates up to 2 times in a policy period.

Whereas a car insurance will take care of your car and the repair costs, even that has some limitations. This is where depreciation reimbursement cover can be of great help to you by ensuring that it fills the gap between the actual damage and the claim settlement amount. It gives you relief from unforeseen expenses, as well as peace of mind.

Who needs it the most?

While anyone with a car less than 5 years old should have depreciation reimbursement cover or add-on, it is especially important for the following people:

Someone who just bought a new car- The value of your car starts depreciating the moment it hits the 6-month marker and after that even a little bump might send your car to the garage. So, get this cover along with the policy to protect your new car.

Someone who just started driving- If you are a new driver, you take time to adjust to the road, and are more likely to damage your car. So, this cover would help you get the claim.

Someone who owns an expensive car- Luxury car parts can cost you twice or thrice as much the normal prices. And in the event of an accident or damage, it can be a very heavy price to pay since even 5% would mean a lot here. So, save yourself the trouble and get the add-on now!

Whereas a comprehensive car insurance policy will take care of your car and the repair costs, even that has some limitations. This is where depreciation reimbursement cover can be of great help as it fills the gap between the actual repair amount and the claim settlement amount.

So, don’t be surprised, get zero depreciation reimbursement add-on.

Note –

*Depreciation Reimbursement claim is payable only if Own Damage Claim is admissible & vehicle is repaired at Tata AIG’s authorised garage/workshop.

*A compulsory excess deduction of Rs. 1000 or Rs.2000 based on the Cubic Capacity of the vehicle is applicable during claims.

It does not cover normal wear and tear or even mechanical breakdown of your car.

It covers all expenses incurred due to damage to car paint, rubber and plastic parts, batteries, tyres and so on. The add-on only operates up to 2 times in a policy period.

Whereas comprehensive car insurance will take care of your car and the repair costs, even that has some limitations. This is where depreciation reimbursement cover can be of great help to you by ensuring that it fills the gap between the actual damage and the claim settlement amount. It gives you relief from unforeseen expenses, as well as peace of mind.