Car insurance is essential for every vehicle owner in India, but not all policies offer complete protection. One of the most valuable add-ons available today is Zero Depreciation Car Insurance. If you want maximum claim benefits without worrying about depreciation cuts, this cover can save you thousands of rupees during repairs.
In this detailed guide, we explain what zero depreciation car insurance is, how it works, its benefits, cost, and whether it is worth buying.
What Is Zero Depreciation Car Insurance?
Zero depreciation car insurance, also known as bumper-to-bumper insurance, is an add-on cover available with comprehensive car insurance policies. Under this cover, the insurer does not deduct depreciation on car parts while settling claims.
Normally, insurers reduce the claim amount by factoring in depreciation on parts like plastic, rubber, fibre, and metal. With zero depreciation cover, you receive the full cost of repair or replacement, except for consumables and compulsory deductibles.
How Depreciation Affects Normal Car Insurance Claims
In a standard comprehensive car insurance policy, depreciation is applied as per IRDAI rules:
Plastic & rubber parts: 50% depreciation
Fibre parts: 50% depreciation
Metal parts: 10%–50% depending on vehicle age
This means you end up paying a significant amount from your pocket. Zero depreciation car insurance eliminates this burden.
Benefits of Zero Depreciation Car Insurance
- Higher Claim Amount
The biggest advantage is that you receive a higher claim payout, as depreciation is not deducted.
- Lower Out-of-Pocket Expenses
Repair costs, especially for plastic and fibre parts, are fully covered.
- Ideal for New and Expensive Cars
Luxury and new cars have costly spare parts, making zero depreciation cover highly beneficial.
- Peace of Mind
You don’t have to worry about hidden costs during claim settlement.
- Better Protection in Accidents
Even minor accidents can lead to expensive repairs—zero dep cover ensures better financial protection.
Who Should Buy Zero Depreciation Car Insurance?
Zero depreciation car insurance is best suited for:
Owners of new cars (less than 5 years old)
Luxury or premium car owners
People living in accident-prone or high-traffic areas
New drivers with limited driving experience
Those who want maximum claim benefits
If you frequently drive in city traffic, this add-on is highly recommended.
What Is Covered Under Zero Depreciation Insurance?
Zero depreciation car insurance covers:
Cost of plastic, fibre, and rubber parts
Full replacement cost without depreciation
Repair expenses after accidents
Damage due to fire, theft, vandalism, or natural disasters
It works only when added to a comprehensive car insurance policy.
What Is Not Covered?
Despite its benefits, zero depreciation cover does not include:
Engine oil and consumables
Tyre damage (unless covered under another add-on)
Mechanical or electrical breakdown
Claims beyond the allowed limit (usually 2 per year)
Mandatory deductibles
Always read policy terms carefully before purchasing.
Cost of Zero Depreciation Car Insurance
Zero depreciation cover increases your car insurance premium by 10%–20%, depending on:
Car age
Car model
Insurer
Location
Though the premium is higher, the savings during claims often outweigh the additional cost.
Zero Depreciation Car Insurance vs Normal Car Insurance
Feature Normal Insurance Zero Dep Insurance
Depreciation Deduction Yes No
Claim Amount Lower Higher
Premium Lower Slightly Higher
Out-of-Pocket Expense High Minimal
How to Buy Zero Depreciation Car Insurance Online
Buying zero depreciation car insurance online is easy:
Visit the insurer’s website or insurance aggregator
Enter car details
Select comprehensive car insurance
Choose zero depreciation add-on
Compare premiums
Make online payment
Get policy instantly via email
Online purchase often offers discounts and better transparency.
Is Zero Depreciation Car Insurance Worth It?
Yes, zero depreciation car insurance is worth it, especially for new and premium cars. Even one major claim can recover the extra premium you pay. It ensures stress-free repairs and higher claim settlements.
Final Thoughts
Zero Depreciation Car Insurance offers maximum protection by eliminating depreciation deductions during claims. While it comes at a slightly higher premium, the financial relief during accidents makes it a smart choice for most car owners in India.
If you want better coverage, lower repair costs, and peace of mind, zero depreciation cover is an investment—not an expense.