Can I Get Zero Depreciation Cover Beyond 5 Years For car
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Home / Car Insurance / Can I Get Zero Depreciation Cover Beyond 5 Years For a Car?
Getting car insurance comes with several add-ons. Zero depreciation cover is one of the popular add-ons for new or luxury cars. It protects you from paying for parts depreciation during a claim.
But can you get it once your car turns 5 years old? Well, this blog will answer this question for you, so keep on reading.
What is Zero Depreciation Cover?
Zero depreciation cover, nil depreciation cover, or bumper-to-bumper cover provides full reimbursement for replaced car parts. This means that when one claims insurance for their car’s repair bill, the insurers will not deduct wear and tear.
The insurance holder will only have to pay the compulsory deductible amount. Therefore, this add-on is perfect for keeping your out-of-pocket costs low after an accident.
When Can You Get Zero Depreciation Cover for Your Car
Insurers usually offer this add-on for cars up to 5 years old. You can add it when you buy or renew a comprehensive policy. However, to answer your question whether you can get zero depreciation cover after 5 years, well, yes. Some insurers do offer it beyond the 5-year mark if your vehicle is in perfect condition. Make sure to meet the following conditions:
The car must have a solid maintenance record.
You should have made a few or no prior claims.
In these cases, the insurer may generally inspect your vehicle before approval of the add-on to your insurance policy.
Key Benefits of Opting for Zero Depreciation Cover
Key benefits of opting for zero depreciation with online insurance for your car are as follows:
It provides better protection for cars in high-risk areas.
If you have luxury cars, their parts can be expensive, and this add-on offers full coverage for them as well.
It also helps maintain your car’s condition by covering minor repairs.
Zero dep cover also covers damage from dents, bumps, and costly spare parts.
It lowers out-of-pocket expenses for car repairs.
Due to this coverage, the claim settlement amount for you increases by covering depreciation.
Mostly, it comes with a low and affordable additional premium.
Factors Impacting the Calculation of Zero Depreciation Car Insurance Premium
Several elements impact the premium you will pay for your vehicle insurance, and the add-on of zero dep. These factors are as follows:
Car Age: The older your car is, the higher the premiums are. This is because older cars require more maintenance and are more prone to damage than newer cars.
Location: High-risk areas raise the insurance costs. For instance, cars in hilly areas are more prone to accidents due to curved roads, so the premium for those places might be higher.
Car Model: Since luxury cars have expensive parts, thus their premiums are higher than normal cars.
Claim History: If you have a frequent claim history, then this may lead to the rejection of the add-on.
Depreciation Rates in Car Insurance
The following table shows the rate of depreciation for all of the parts as approved by IRDAI:
Car Parts | Rate of Depreciation |
|---|---|
Rubber/Plastic/Nylon/Batteries | 50% |
Fibre Parts | 30% |
Wooden Parts | 5% in the first year, 10% in the second year, and so on. |
The following table shows the rate of depreciation for cars as per their age:
Car Age | Rate of Depreciation |
|---|---|
Less Than 6 Months | 5% |
More Than 6 Months to 1 Year | 15% |
More Than 1 Year to 2 Years | 20% |
More Than 2 Years to 3 Years | 30% |
More Than 3 Years to 4 Years | 40% |
More Than 4 Years to 5 Years | 50% |
More Than 5 Years | To be mutually decided between the insurer and the policyholder. |
Lastly, the following table provides the rate of depreciation for the metallic parts of a car as per their age:
Car Age | Rate of Depreciation |
|---|---|
Less Than 6 Months | Nil |
More Than 6 Months to 1 Year | 5% |
More Than 1 Year to 2 Years | 10% |
More Than 2 Years to 3 Years | 15% |
More Than 3 Years to 4 Years | 25% |
More Than 4 Years to 5 Years | 35% |
Exceeding 5 years but not exceeding 10 years | 40% |
More Than 10 Years | 50% |
How to Buy Zero Depreciation Insurance for Your Car?
Below are the steps to follow to buy a zero depreciation cover:
Visit your insurer’s website or app.
Enter your car’s registration details.
Choose a comprehensive plan.
Select the zero depreciation add-on.
Pay online and get instant policy approval.
Please note that you cannot get this cover with third-party insurance policies
How to Renew Zero Depreciation Insurance for Your Car?
The steps for the renewal process for this cover are as follows:
Go to your insurer’s platform.
Enter the vehicle registration number.
Pick your existing or updated plan.
Choose the add-on again.
Pay online to complete the renewal.
If your car is over five years old, it may require an inspection for approval.
Bottom Line
So, if you think, should I take zero-dep insurance for a car older than 5? Then the answer will be yes. If you want the best protection, this add-on is worth considering. Zero depreciation cover helps you avoid large repair bills by eliminating depreciation deductions.
Most insurers offer it for vehicles under five years old. However, some of them now extend the cover beyond five years under special terms.
Frequently Asked Questions
FAQS
Can zero depreciation coverage be extended beyond 5 years?
Generally, zero dep cover is not given to cars beyond 5 years. This happens because it becomes costlier for the insurance company to cover the full cost of parts over time.
How does settlement happen with zero depreciation car insurance?
If a person claims zero dep car insurance, they receive the full claim amount without any depreciation deductions. As a result, the out-of-pocket expenses decrease.
Is the cost of consumable items covered in zero dep?
No, the cost of consumable items, such as oil, nuts and bolts, and more, is not covered in zero dep.
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