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Zero depreciation or Nil Depreciation or Bumper-to-Bumper Cover is a car insurance add-on. At the time of claims, this add-on puts the liability of paying for depreciated parts of your car on the insurance company, instead of you.
You pay partial cost of depreciated parts of your car. Specifically, 50% cost of all rubber / nylon / plastic parts, tyres and tubes, batteries and air bags and 30% cost of fiberglass components needs to be paid by you. The rest [including the cost of glass parts] is paid by the insurance company.
If your car [a standard hatchback] was damaged and the workshop billed you at Rs. 40,000 for the repairs, you might have to pay as much as Rs. 20,000-25,000 out of your own pocket, on account of depreciation of plastic and metal parts.
Your insurance company settles the entire amount of the cost of depreciated parts.
Remember: This add-on cover is offered only for cars up to 5 years of age. Some insurers do not allow you to make more than two claims in a policy period under this add-on.
Your car’s engine is not covered by a comprehensive car insurance policy. The engine protect cover passes on the liability of paying for the damages to your engine on your insurance company.
Your car insurance will not cover for the repair or replacement costs for the engine.
For a standard hatchback, repair or replacements of engine parts like crankshaft, piston and pins, block assy cylinder and head assy cylinder etc, can cost you a hefty Rs. 1,05,000 or more. This is exclusive of the metal and plastic part costs which could be an additional Rs. 20,000. With just a comprehensive car insurance policy, you’d have to pay the entire engine repair costs and a part of metal and plastic parts.
Your insurance company settles the entire amount for engine repairs or replacement.
Remember: Most insurance companies offer this add-on cover for only cars under 5 years of age. One can’t make more than 2 claims in one policy year under this add-on cover. Also, if your engine was damaged not directly in the accident but in a subsequent event, say an oil leakage, your insurance company wouldn’t pay for the engine repairs.
Engine protect cover works best when combined with a zero depreciation add-on to your comprehensive car insurance policy. Like this your insurance company will pay for the engine repairs as well as the cost of depreciated parts.
There are certain consumable parts or substances used in the repairs of any car. To name a few - nuts, bolts, pipes, engine oil, grease to AC gas, coolant and ball-bearings etc. These are not covered under any insurance policy. With consumables cover add-on, you’re passing on that liability on your insurance company.
Your insurance company will not pay for the consumables used during the repairs. The individual costs of consumables may seem relatively low but it’s not the case when the damage in itself is larger.
For repairing a simple frontal damage, Rs. 1000 worth of consumables may be used. But for repairing or replacing engine, this cost can shoot up to Rs. 7,000.
With a consumables cover, you would not have to pay for consumables used in the repairs.
Remember: For suitable coverage, consumables cover works best when combined with a comprehensive car insurance and zero depreciation add-on. Like that your insurance company will pay for the cost of depreciated parts as well as the consumables. By further loading your policy with engine protect cover, you can protect yourself from paying for hefty engine repair costs too.
This add-on cover helps you recover as much as the original on-road price of your car in case it was totally damaged.
A car is considered totally damaged or lost when its estimated repair costs are looking to exceed 75% of its Insured Declared Value (IDV). In that case, under a comprehensive car insurance policy, you are paid as much as the IDV, which is the depreciated value of your car for that year.
With a return to invoice cover, you can get as much as the on-road price of your car in compensation. On-road price includes the ex-showroom price, registration costs and road tax.
For instance, a Maruti Alto’s ex-showroom price in 2016 may be Rs. 5,25,000, and it’s on-road price can reach up to Rs. 6,00,000 post taxes and registration costs. However, the same car’s IDV in 2018 will be Rs. 4,80,000 after applying standard depreciation. So when you file for a total loss claim... you get the math, right?
Remember: Most insurance companies offer this add-on cover for only cars under 3 years of age.
Your flawless, claimless driving fetches you a discount called no-claim bonus (NCB) on your car insurance premium year on year. NCB Protect Cover helps you preserve this discount even when you made a claim.
Your NCB for the next policy year will be zero. No NCB means that you’d have to higher premium in the next year.
If you didn’t claim for 3 years, in the fourth year you can get up to Rs. 4,200 in discount over a car insurance policy of Rs. 12,000. But if you make a claim, you lose that accumulated discount.
With NCB protector, you’ll be able to keep the accumulated NCB discount in the next renewal year, even if you had made a claim.
What is this add-on recommendation tool?
This add-on recommendation tool analyses your car details - like make, model, variant, fuel-type and your past policy details. Based on our inferences from thousands of transactions that we do everyday, this tool recommends you must buy with your comprehensive car insurance policy.
Why do I need add-ons?
A third-party liability component ensures that any one injured by your car is compensated by your insurance policy. Personal accident cover makes sure you or covered for injuries that might happen during a car accident. The own-damage component makes sure that damages done to your own car are covered. Here’s the catch: you may not be covered for the entire cost of repairing the car damages. You might have to pay a part of the repairs out of your own pocket. To avoid doing that, add-ons are recommended.
Does the claim process change if I buy these add-ons?
No. The process of filing a car insurance claim would still be the same. You’d have inform your insurance company. You’d have to take your car to the garage, schedule an inspection with the surveyor of the insurance company, get due approvals, and file relevant papers like the garage bill. It is the claims amount that will change thanks to the add-ons you would have bought. And if you’ve insured your car through Coverfox.com, you can just give us a call and our claims specialist will take care of the rest. Having said that, have you heard of our free of change Express Claims Service?
How do these add-ons affect my premium amount?
These add-ons come at an additional cost which depends on the make-model and IDV of your car. Once you use our recommendation tool, you can get exact quotes for your car too.
What if I don’t get my car repaired at a cashless garage?
Not getting your car repaired at a cashless garage means that you’d have to pay for the entire cost of repairs on your own before getting it reimbursed.