Best Car Insurance for Zero Depreciation Insurance Cover

Car insurance policy acts as a safety net for the policyholders. It provides protection against the damage caused to and by the insured’s vehicle in an unfortunate event. A car insurance is a great tool to mitigate the financial risks which may arise due to unforeseen liabilities involving your car.

However, the fact that the value of a car keeps diminishing with time cannot be denied. Therefore, at the time of claim settlement, policyholders get a relatively lower amount from the car insurance company as the cost of depreciation gets deducted. This is because the liability to bear the cost of depreciation is by default borne by the car owner and not the insurance company. But you can shift this liability of bearing the depreciation cost to the insurance company by purchasing a zero depreciation add-on. A zero depreciation add-on is an extra coverage which provides insurance for the depreciation incurred by your car.

The zero depreciation add-on is available with a comprehensive car insurance policy as well as standalone own damage policy, however, it is not available with third party car insurance policy. In the absence of a zero depreciation add-on, depreciation is applicable in accordance with the age of car.

Top 7 Car Insurance Companies For Zero depreciation Car Insurance As Per Own Damage Claim Settlement Ratio

Insurance company	Claim Settlement Ratio for FY 2017-18
IFFCO Tokio	96.52%
Royal Sundaram	94.96%
New India	93.96%
Tata AIG	91.52%
Bajaj Allianz	91.46%
Oriental Insurance	91.34%
Universal Sompo	90.63%

(Source: IBAI’s General Insurance Claim Insights Handbook For Policyholders - 3rd Edition)

According to the own damage claim settlement ratio of FY 2017-18, these seven insurance companies are the best for purchasing a zero depreciation add-on.

1. IFFCO Tokio Car Insurance

460 reviews

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Highlights

Enjoy seamless free service at 4300+ garages
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Avail perks of zero dep without any limits

1,00,000+ happy customers and counting

Renew your car insurance policy in minutes

95.30% Claim settlement ratio
IFFCO Tokio General Insurance
IFFCO Tokio featured an own damage claim settlement ratio of 96.52% in FY18 and provides zero depreciation to the cars of up to 10 years of age. The feature that makes IFFCO different from others is that it does not set any limitation on the number of claims that can be made under a zero depreciation cover during the validity of the add-on.
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IFFCO Tokio Car Insurance User Reviews
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2. Royal Sundaram Car Insurance

468 reviews

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Highlights

3300+ Avail prompt services at authorized cashless garages
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4 working hours Claim Survey is done

92.66% Recorded claim settlement ratio

Round the clock assistance and emergency services provided
Royal Sundaram General Insurance
From the day of establishment, the company has been able to provide innovative insurance plans individuals, families and businesses. It has created a good reputation in the market with an OD claim settlement ratio of 94.96%.This zero depreciation cover is available for cars with an age of up to 5 years.
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Royal Sundaram Car Insurance User Reviews
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After payment, I was able to sit back and relax. The portal ...
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3. New India Car Insurance

501 reviews

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Highlights

Only direct insurer in India to be rated A-(Excellent) by AM BEST Company since 2007
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Pan India operation with 2452 offices

Pioneer in the non-life insurance segment for more than 40 years

Round the clock support
New India Assurance Company
New India registered an impressive OD claim settlement ratio of 93.96% in FY18.Cars up to 15 years of age are eligible to avail this zero depreciation cover. The New India zero depreciation add-on allows you to get the full claim settlement amount without any deduction for the cost of wear and tear incurred by your car.
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New India Car Insurance User Reviews
No Claim Bonus
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4. TATA AIG Car Insurance

475 reviews

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Highlights

90.49% Super impressive claim settlement ratio
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5900+ Cashless garages

Quick and Hassle-free Policy Renewals

Enjoy 24*7 emergency assistance
Tata AIG General Insurance
TATA AIG is a joint venture between the TATA group and American International group. Car not older than 5 years are eligible to take TATA AIG zero depreciation cover. Policyholders can make a maximum of up to 2 claims against the TATA AIG zero depreciation cover during the cover’s validity period.
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TATA AIG Car Insurance User Reviews
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5. Bajaj Allianz Car Insurance

554 reviews

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Highlights

Round the clock road-side assistance
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4000+ Cashless garages at your service

95% claim settlement ratio

Exclusive DriveSmart service available
Bajaj Allianz General Insurance
Bajaj Allianz General Insurance provides zero depreciation cover only to the cars which are up to 5 years old. A maximum of 2 claims are allowed under this cover during the validity period. You should purchase this add-on as when you buy it, the cost of depreciation is borne by the company.
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Bajaj Allianz Car Insurance User Reviews
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6. Oriental Car Insurance

93 reviews

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Highlights

Network of 31 regional offices and more than 1,800 active branches
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A huge number of network garages, which offer direct cashless claim

Total strength of 14,000+ employees and well established in the rural parts of the country.

Overseas operations in countries like Nepal, Kuwait and Dubai
Oriental General Insurance
Oriental Insurance is a great insurance company for zero depreciation cover and registered an Own Damage Claim Settlement Ratio of 91.34% in FY18.This add-on is available for private vehicles not older than 3 years and commercial vehicles not older than 5 years.
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Oriental Car Insurance User Reviews
Zero Depreciation Cover
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7. Universal Sompo Car Insurance

299 reviews

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Highlights

First private-public joint venture company in India
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Ranked 5th in ICMR-BMF survey of top 15 non-life insurance companies

24*7 responsive customer support

Instant and paperless policy renewal
Universal Sompo General Insurance
Universal Sompo zero depreciation cover is available only to cars aged up to 5 years. Policyholders can make a maximum of up to 2 claims against this add-on during the policy period.
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Universal Sompo Car Insurance User Reviews
Zero Depreciation car cover
Having this type of insurance cover, it made my car insuranc...
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