Is a Zero Depreciation add-on insurance really needed in the 1st year?

What if we omit it at the time of purchase and then include it from the 2nd year onwards?

BHPian hemant.kamat recently shared this with other enthusiasts.

Hello everyone. While I believe a zero depreciation add-on is absolutely essential considering the soaring cost of vehicles & spares, is it really required when purchasing a new car? What if we omit it at the time of purchase and then include it from the 2nd year onwards? Appreciate your thoughts and insights.

Here’s what BHPian Roadie9 had to say on the matter:

Hello everyone. While I believe a zero depreciation add-on is absolutely essential considering the soaring cost of vehicles & spares, is it really required when purchasing a new car? What if we omit it at the time of purchase and then include it from the 2nd year onwards? Appreciate your thoughts and insights.

Here’s what BHPian Sufficient_shop had to say on the matter:

15k on 10L vehicle sounds too high. From what I remember, it was less than 7.5k for a 20L vehicle when I got a quotation. Cross check with different insurance companies.

Here’s what BHPian ghodlur had to say on the matter:

The Zero dep add on is a mandatory add any new car buyer should include in their Insurance premium. Although its voluntary its highly recommended. No two thoughts about it.

15k cost of the zero dep add on – which Insurance co is this quoting such an astronomical price. I have paid 6.5k as add on on a 18L vehicle and is dependent on the IDV for the policy year. As IDV reduced the cost of the add ons also reduce.

The vehicle depreciation for the first year is 5% and then for subsequent years is 10%, suggest to check the policy document where the depreciation rates are clearly mentioned. Your understanding on the depreciation rates seemed to be mismatched with the policy document.

Here’s what BHPian funkydude had to say on the matter:

Zero Dep is optional however one should always go for zero Dep as long as it’s available. Few insurance companies offer zero dep till 7 years of the car age.

Useful for the ones who prefer to get the repairs done by authorized body shops (i.e. the dealership)

However, if you prefer to get the repairs done at the local body shops you would end up saving a lot.

Sorry, but am not an expert here.

I have comprehensive insurance for my Alto (5 years) and zero dep for Alcazar (3 months) and Tigor EV (1.3 years).

For Alto, I prefer to get the denting/painting done by the local garages, if needed.

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