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
Highlights
Enjoy seamless free service at 4300+ garagesCheck in your CityAvail perks of zero dep without any limits1,00,000+ happy customers and countingRenew your car insurance policy in minutes95.30% Claim settlement ratioIFFCO Tokio General Insurance
Read MoreIFFCO 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.
IFFCO Tokio Car Insurance User Reviews
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2. Royal Sundaram Car Insurance
Highlights
3300+ Avail prompt services at authorized cashless garagesCheck in your City4 working hours Claim Survey is done92.66% Recorded claim settlement ratioRound the clock assistance and emergency services providedRoyal Sundaram General Insurance
Read MoreFrom 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.
Royal Sundaram Car Insurance User Reviews

3. New India Car Insurance
Highlights
Only direct insurer in India to be rated A-(Excellent) by AM BEST Company since 2007Check in your CityPan India operation with 2452 officesPioneer in the non-life insurance segment for more than 40 yearsRound the clock supportNew India Assurance Company
Read MoreNew 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.
New India Car Insurance User Reviews

4. TATA AIG Car Insurance
Highlights
90.49% Super impressive claim settlement ratioCheck in your City5900+ Cashless garagesQuick and Hassle-free Policy RenewalsEnjoy 24*7 emergency assistanceTata AIG General Insurance
Read MoreTATA 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.
TATA AIG Car Insurance User Reviews

5. Bajaj Allianz Car Insurance
Highlights
Round the clock road-side assistanceCheck in your City4000+ Cashless garages at your service95% claim settlement ratioExclusive DriveSmart service availableBajaj Allianz General Insurance
Read MoreBajaj 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.
Bajaj Allianz Car Insurance User Reviews
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6. Oriental Car Insurance
Highlights
Network of 31 regional offices and more than 1,800 active branchesCheck in your CityA huge number of network garages, which offer direct cashless claimTotal strength of 14,000+ employees and well established in the rural parts of the country.Overseas operations in countries like Nepal, Kuwait and DubaiOriental General Insurance
Read MoreOriental 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.
Oriental Car Insurance User Reviews

7. Universal Sompo Car Insurance
Highlights
First private-public joint venture company in IndiaCheck in your CityRanked 5th in ICMR-BMF survey of top 15 non-life insurance companies24*7 responsive customer supportInstant and paperless policy renewalUniversal Sompo General Insurance
Read MoreUniversal 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.
Universal Sompo Car Insurance User Reviews