[shankar.balan]

Originally Posted by varunsangal

A few questions on zero dep insurance; apologies if they have been addressed elsewhere.

1. If a car is on zero dep insurance from Day 1 will the zero dep carry on into the third and subsequent years?
2. If there is a claim in any of the years, will zero dep be allowed in the subsequent renewal?
3. In case of a claim on zero dep insurance, will the the no claim bonus (NCB) be set to 0% as well?

I ve been on a 4 year Extended Warranty on my Yeti from the day it was bought.
I ve also bought into the Zero Dep Insurance from Bajaj Allianz right from Day 1.

Each year I have been renewing my Zero Dep Insurance which basically means I pay literally double the Insurance Premium required - because over each year, the actual IDV of the vehicle reduces and the actual Premium itself reduces in proportion. But the cost of the Zero Dep stays pretty much constant.

So far, grace of God I ve not had to claim anything so this, being the 4 year renewal period, I believe the actual premium will go down further but the Zero Dep will still cost the same.

From the end of this year, when the time comes to renew, the 4 Year Manufacturer's Extended Warranty will not apply any longer. I am therefore, going to continue paying the Zero Dep as long as I keep this car, because once the car is out of warranty, I am hoping that Zero Dep, will help to an extent, in case of any issues.

When buying an expensive car, it is worth considering this.

I ve done the same for my folks' car as well believing this method to be worth it.

If anyone has any views I would appreciate them!

[Santoshbhat]

Originally Posted by shankar.balan

I ve been on a 4 year Extended Warranty on my Yeti from the day it was bought.
I ve also bought into the Zero Dep Insurance from Bajaj Allianz right from Day 1.

Each year I have been renewing my Zero Dep Insurance which basically means I pay literally double the Insurance Premium required - because over each year, the actual IDV of the vehicle reduces and the actual Premium itself reduces in proportion. But the cost of the Zero Dep stays pretty much constant.

So far, grace of God I ve not had to claim anything so this, being the 4 year renewal period, I believe the actual premium will go down further but the Zero Dep will still cost the same.

From the end of this year, when the time comes to renew, the 4 Year Manufacturer's Extended Warranty will not apply any longer. I am therefore, going to continue paying the Zero Dep as long as I keep this car, because once the car is out of warranty, I am hoping that Zero Dep, will help to an extent, in case of any issues.

When buying an expensive car, it is worth considering this.

I ve done the same for my folks' car as well believing this method to be worth it.

If anyone has any views I would appreciate them!

I believe zero dep policies cannot be bought vehicles older than 3 years (or maybe 5)

Personally I am not a fan of these zero dep policies. The advantage of these policies is that you get full coverage for replacement parts without applying standard depreciation rate. When the car is in its first year, the depreciation is anyway zero even for normal policy for metal parts. Only for plastic and glass parts 50% depreciation is applied in a normal policy which is not applied in a zero dep. So basically zero dep cover ensures you get full cover for these items only over and above normal cover. Second year onwards the standard depreciation rates are not applied to even metal parts and you get full cover. But you are paying a higher premuim every year as well, which you will continue to do till the fifth year. So you are already paying up in advance to reduce your burden in the case of a contingent event which may or may not happen.

Zero dep policies are good if an inexperienced driver is driving a very expensive to repair kind of car, where things like bumpers and glass are very expensive. With zero dep policies you don't have to shell out anything for bumper damage (which is more likely with inexperienced drivers) whereas with a normal policy you have to shell out 50% cost.

In my case I took a zero dep policy only for the first year for my Laura. Second year onwards I've taken just the normal comprehensive policy.

[ghodlur]

Originally Posted by varunsangal

1. If a car is on zero dep insurance from Day 1 will the zero dep carry on into the third and subsequent years?
2. If there is a claim in any of the years, will zero dep be allowed in the subsequent renewal?
3. In case of a claim on zero dep insurance, will the the no claim bonus (NCB) be set to 0% as well?

To answer your question serially,
1) Zero dep add on cover has to be purchased every year along with the Insurance renewal. The add on cover is offered for ownership till 5 years as on date by only a few Insurance co and not all. The general cut off period is 3 yrs for offering the add on cover.
2) Subject to Insurance co offering the zero dep add on cover.
3) Yes, NCB will revert to zero.

Originally Posted by shankar.balan

But the cost of the Zero Dep stays pretty much constant.
I believe the actual premium will go down further but the Zero Dep will still cost the same.

That should not be the case, since the zero dep add on cover is usually calculated based on the IDV. So as IDV drops, your add on cost should also drop. The calculation depends on the city/region of the car registration.

Originally Posted by Santoshbhat

I believe zero dep policies cannot be bought vehicles older than 3 years (or maybe 5)
Zero dep policies are good if an inexperienced driver is driving a very expensive to repair kind of car

These days not necessarily. Even an experienced driver can go wrong and end up in big damage and high repair cost. The only drawback of the zero dep add on cover is that it does not cover the consumables used during the repair work. But now a days you get an add on cover for the consumables cost too.

[varunsangal]

Originally Posted by ghodlur

1) Zero dep add on cover has to be purchased every year along with the Insurance renewal. The add on cover is offered for ownership till 5 years as on date by only a few Insurance co and not all. The general cut off period is 3 yrs for offering the add on cover.

Thanks for your reply, I may be beating a dead horse here, but, suppose I buy zero dep in the first year, and keep renewing it every year, in the 6th year, will I still get zero dep, or will it not be allowed because of the age? I typically end up keeping my cars for at least 10 years, so am concerned about this.

[kalpeshc]

Originally Posted by varunsangal

1. If a car is on zero dep insurance from Day 1 will the zero dep carry on into the third and subsequent years?

Yes. But it depends on the provider. Most of the providers would do it though.

Originally Posted by varunsangal

2. If there is a claim in any of the years, will zero dep be allowed in the subsequent renewal?

Ideally yes, but your premium may increase a bit and you would not get any NCB

Originally Posted by varunsangal

3. In case of a claim on zero dep insurance, will the the no claim bonus (NCB) be set to 0% as well?

Yes

[ghodlur]

Originally Posted by varunsangal

I buy zero dep in the first year, and keep renewing it every year, in the 6th year, will I still get zero dep, or will it not be allowed because of the age?

Depends mainly on the Insurance co. If you renew with the same insurance co and fortunately don't have any claims in the first 5 yrs of ownership, the Insurance co may offer you the cover for the 6th year too. As of now the zero dep add on cover offered by Insurance is for ownership till 5 yrs maximum.

[Metallicar]

I own a Honda Brio VMT 2011 model. From the 2nd year till now I have been on a zero depreciation insurance from ICICI. Never thought I am going to use it.

Last month my cousin had an accident. He was not wearing seat belts so the airbags didn't deploy.

Damage - Windshield, Bonnet, RHS side view mirror, Bonnet, Front bumper, Side fender and front headlights all gone.

Garage's bill was 33k. I got 30k from the insurance company. If it had been a normal insurance then it would have costed me some 18k.

Moreover in case of complete damage or theft they pay you the price at which you bought the car. I think with taxes (not sure though). But in case of normal cars you are going to get way lesser.

But this policy can be bought only for first 5 years and is not applicable after that.

I am not sure but I think you cannot claim zero depreciation twice in a month. This was told to me by the garage owner but cannot confirm it.

[ghodlur]

Originally Posted by Metallicar

Moreover in case of complete damage or theft they pay you the price at which you bought the car. I think with taxes (not sure though). But in case of normal cars you are going to get way lesser.

Provided you have bough the Return to Invoice Add on cover when buying/renewing Insurance.

But this policy can be bought only for first 5 years and is not applicable after that.

Subject to no claims in the initial 5 yrs of ownership, some Insurance co are known to offer you zero dep add on for an additional year or so.

I am not sure but I think you cannot claim zero depreciation twice in a month

Some Insurance co offer zero depreciation claims only twice a year, some offer unlimited zero dep claims. There is no such rule which says zero dep cannot be claimed twice in a month.

[Metallicar]

Originally Posted by ghodlur

Provided you have bough the Return to Invoice Add on cover when buying/renewing Insurance.

Yes I have return to invoice with zero depreciation.

No Claim Bonus only be allowed provided the policy is renewed with in 90 days of the expiry date of the previous policy.

Avail coverage on replaced parts with zero deduction for depreciation. However this endorsement shall be applicable to the first two (2) claims during the policy period.

These conditions are for ICICI Lombard. We can claim zero depreciation twice only in an year. Other insurers may have different t&c.

[rohanak1]

I have insured my car through Tata AIG 0% depreciation policy (TA01). This is commonly known as bumper-to-bumper. I did not know this and kept telling the insurance agent I want a 0% depreciation policy when he meant the same thing by bumper-to-bumper

The insurance is up for renewal on Sept 25th. Already started receiving calls from Trident Renault asking me to buy Bajaj Allianz as they have a cashless setup with the service center. They are quoting a 15k premium for an IDV on 8L with 0% dep. and roadside assistance. But the fine print of BA says that this roadside assistance is only for 50km radius from our city of residence. Planning to shift from TAIG to BA due to the cashless facility. My 20% NCB will also be transferred

[Metallicar]

Originally Posted by rohanak1

I have insured my car through Tata AIG 0% depreciation policy (TA01). This is commonly known as bumper-to-bumper. I did not know this and kept telling the insurance agent I want a 0% depreciation policy when he meant the same thing by bumper-to-bumper

The insurance is up for renewal on Sept 25th. Already started receiving calls from Trident Renault asking me to buy Bajaj Allianz as they have a cashless setup with the service center. They are quoting a 15k premium for an IDV on 8L with 0% dep. and roadside assistance. But the fine print of BA says that this roadside assistance is only for 50km radius from our city of residence. Planning to shift from TAIG to BA due to the cashless facility. My 20% NCB will also be transferred

Add return to invoice too. Really helps in case of theft or car damage beyond recovery.

[rohanak1]

Originally Posted by Metallicar

Add return to invoice too. Really helps in case of theft or car damage beyond recovery.

I believe this is only for the 1st year of a car.

[Metallicar]

Originally Posted by rohanak1

I believe this is only for the 1st year of a car.

No. Nothing like that. I didn't have it in my first year but have been adding it from the 2nd year. My car is in its 4th year now.

[rohanak1]

Originally Posted by Metallicar

No. Nothing like that. I didn't have it in my first year but have been adding it from the 2nd year. My car is in its 4th year now.

Does this mean that the IDV of the car is the total cost paid by me during purchase? This would bump up the premium right? As of now I have opted for 8L IDV. In case of total loss or theft I would get 8L right? Or lesser?

[Metallicar]

IDV will remain the same as normal insurance. The premium on that will be calculated on IDV. With return to invoice you will get the invoice value of the car which is the ex-showroom price of your car when bought. Also first time registration charges and road tax will be paid to you. Its like paying you enough so that you can buy a brand new car.

Without return to invoice you get IDV which decreases by 20% every year.