The value of your car depreciates over time as a result of normal wear and tear. That’s why the more you drive your vehicle, the lower its value becomes. Depreciation can also be defined as the decrease in the value of an asset over its useful life.
One way to protect your car from depreciation is to purchase a Depreciation Cover. This is where the sales value of your vehicle, estimated by your Blue Book, is usually capped at 10% by insurance companies, this is also known as the base loss of value. This base loss of value is the most your insurance company will payout on a claim.
After you’ve purchased your car, you should protect it. Here are two of the most popular car insurance policies currently available on the market.
One way to reduce the cost of your premium is to purchase cars in a low insurance group. Purchasing group car insurance can be less expensive than purchasing individual car insurance. As you’re paying the wholesale rate rather than the retail rate.
A Government mandatory insurance ensures that everyone involved in a car accident is covered. Whether the person is a driver, a passenger, or a pedestrian, mandatory car insurance will cover any case involving the loss of life or body parts, as well as other situations.
It’s our job to make purchasing insurance as easy as possible for our customers, we ensure that you can find affordable coverage that fits your budget in several simple steps. Let us take the stress out of choosing a car insurance plan and add-ons, so you can relax knowing that your car is fully protected with the best insurance for your budget and needs.
Before you purchase your next vehicle, do some fast and easy research to get an idea of potential depreciation. Certain brands are more vulnerable, mostly as a result of their residual reputation for poor dependability.
While several variables influence how and when vehicles depreciate, one thing is always true, regardless of the type of vehicle you purchase, new cars depreciate much faster than used cars.
1. After one minute: When you drive a brand-new car off the lot, it loses between 9 – 11% of its value. So, with a 900,000 baht new car, you’re essentially tossing 90,000 baht out the window the first time you drive it home.
2. After one year: According to research, new cars lose the most value within the first 12 months of ownership. Your car would most likely be worth around 20% less than what you paid for it after a year.
3. After five years: The new car will depreciate by 15 – 25% every year after the steep first-year drop before it reaches the five-year mark. As a result, after five years, the new car would have lost roughly 60% of its value.
A diminished value claim compensates a driver for the loss of resale value of their vehicle as a result of an accident.
The decrease in value is due to the fact that the vehicle has a damage history or has been involved in an accident or depreciation, lowering its resale value in the eyes of potential buyers. The diminished value of your car is the amount it has lost in market value as a result of being in an accident.