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Difference Between Own Damage And Zero Depreciation Car Insurance

Written by Saad Ahmad
Updated On Jan 03, 20242 min read

Difference Between Own Damage And Zero Depreciation Car Insurance

While buying a car insurance the most common terms one will come across are ‘own damage’ and ‘zero depreciation’. They brings into light one’s policy coverage as well as the way of calculation of the claimed amount. 

Lets dive into the article to read about  Own Damage Car insurance vs Zero Depreciation Car Insurance in depth! 

Difference Between Own Damage And Zero Depreciation Car Insurance

What is Own Damage Car Insurance

The type of insurance that helps the owner against the damages by self, these damages may be endured due to unanticipated events like natural calamities, road accidents, theft and many more. This type of car insurance leads one to get covered financially and obtain compensation for own damages.

In order to cover self damages endured by the car, one can buy car policy with a third party liability. According to the Motor Laws of India, it is compulsory to purchase third party car insurance as it cover losses like injury, death or property damage.

One can also avail own damage cover with the help of a Comprehensive car insurance policy as it covers both third party liabilities as well as own damage to the car, offering a more wider coverage. One can claim damage to the insured car only it they own a Comprehensive Car Insurance Policy.

As per the Insurance Regulatory and Development Authority (IRDAI), it has been made mandatory to own a motor insurance policy for each and every car purchased after 1 September, 2018, this states that every car insurance company must sell a bundled policy which offers three year party and one year self (Own) damage cover.

What is Zero Depreciation Car Insurance?

An additional cover purchased by the policy holder along with the Comprehensive Car Insurance is called Zero Depreciation Car Insurance and also known as Nil Depreciation Cover. It also provides coverage for depreciation over the car as well as its parts over many years.

One can purchase a zero dep add on, in order to do that one must pay some extra premium in addition to the price of car insurance. 

Generally a normal insurance policy precludes normal wear and tear sustained over the years but Zero Dep add on, unlike others includes this and get this depreciation covered at one’s claim settlement which will further include both the amount of car depreciation and that of its parts. 

Own Damage Car Insurance vs Zero Depreciation Car Insurance


Own Damage Car Insurance

Zero Depreciation Car Insurance


Includes depreciation of the car insured and its parts

Depreciation borne by the insured car is not included




Amount can be Claimed

Claim amount is higher as depreciation amount is also included

Claim amount is lower as depreciation amount is excluded

Calculation of depreciation of Car

Increase in depreciation is directly propotional with how old the car is

Car’s age is not taken into consideration



Zero dep add on might or might not be included under Own damage as it is totally dependent on the policy holder. A person must consider buying a Zero Depreciation add on along with their car insurance as it provides security irrespective of the car’s age and includes normal wear and tear sustained over the years unlike other Standard Insurance Policies. The premium on own damage is higher as compared to the zero depreciation car insurance and covers own damages endured by the car.

Also read: In India, Why And How Is A Car Insurance Background Check Performed?

What Is Collision Damage Waiver and How Does It Work?


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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Written by Saad Ahmad
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 Saad is a marketing guru and has some exciting knowledge to share about the motor and related industry. Saad in his last work with a major Indian yet global conglomerate has made direct contributions to the Insurance sector. In his free time, Saad likes to play badminton and listen to melancholic music

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