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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



Royal Sundaram


New India


Tata AIG


Bajaj Allianz


Oriental Insurance


Universal Sompo


(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

421 reviews
Know more about IFFCO Tokio Car Insurance
  • Highlights

    Enjoy seamless free service at 4300+ garages
    Check in your City
    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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    On: December 24, 2019

2. Royal Sundaram Car Insurance

435 reviews
Know more about Royal Sundaram Car Insurance
  • Highlights

    3300+ Avail prompt services at authorized cashless garages
    Check in your City
    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

    Sit back and Relax

    After payment, I was able to sit back and relax. The portal ...

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    On: December 24, 2019

3. New India Car Insurance

465 reviews
Know more about New India Car Insurance
  • Highlights

    Only direct insurer in India to be rated A-(Excellent) by AM BEST Company since 2007
    Check in your City
    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

    To be honest I was completely unaware of the No Claim Bonus ...

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    On: December 24, 2019

4. TATA AIG Car Insurance

429 reviews
Know more about TATA AIG Car Insurance
  • Highlights

    90.49% Super impressive claim settlement ratio
    Check in your City
    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

    Compare before buying

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    On: December 24, 2019

5. Bajaj Allianz Car Insurance

507 reviews
Know more about Bajaj Allianz Car Insurance
  • Highlights

    Round the clock road-side assistance
    Check in your City
    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

    Got an insurance policy really fast

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    On: December 24, 2019

6. Oriental Car Insurance

93 reviews
Know more about Oriental Car Insurance
  • Highlights

    Network of 31 regional offices and more than 1,800 active branches
    Check in your City
    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

    I got to know of the term Zero Depreciation Cover only from ...

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    On: December 24, 2019

7. Universal Sompo Car Insurance

299 reviews
Know more about Universal Sompo Car Insurance
  • Highlights

    First private-public joint venture company in India
    Check in your City
    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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    On: December 24, 2019