Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Claim, renew, manage & moreLogin

Zero Depreciation Car Insurance

Zero depreciation is a car insurance add-on cover that makes the insurance companies settle the claim amount without taking the depreciation on various parts of the car into consideration, which enhances the claim amount of the policyholder. It can be availed for a limited number of times in a policy term of the insurance policy.

Car insurance starting from Rs. 2072/year*
Car insurance starting from Rs. 2072/year*
  • Save upto 75%*
    Lowest Car Premiums
  • 45 Lakh+
    Happy Customers
  • Claim Support
    7 days a week

*TP price for less than 1000cc four wheeler. All savings/offers are provided by the Insurers which are subject to modification. Terms and conditions apply

What is Depreciation Mean?

Like every other commodity, your car is also subject to depreciation, i.e., the devaluation with time due to wear and tear. The onus of bearing the depreciation liability originally rests with the car owner and not the insurance provider. Thus, at the time of a claim settlement, the amount of depreciation applicable on your car and its parts get deducted from the compensation amount thereby reducing it. This is where the Zero Depreciation add-on cover comes in handy.

What is Nil/Zero Depreciation Car Insurance?

Zero Dep Car Insurance - A zero depreciation add-on cover, also known as Nil Depreciation and Bumper-to-Bumper cover, is a popular car insurance add-on cover which is most commonly opted by car owners along with their comprehensive car insurance policy. It shifts the liability of bearing the depreciation of your car and its parts from you to the insurance company against a nominal premium. Sometimes, even a single claim helps you recover the entire zero depreciation cover’s premium amount.

A zero depreciation add-on covers all parts of your car at 100% except tyres, tubes and batteries which are covered at 50%. Generally, insurers allow 2 zero depreciation claims during the policy tenure, however, there are some insurers like IFFCO Tokio who allow you to make an unlimited number of zero depreciation claims during the tenure of your car insurance policy.

Who Should Opt for a Zero Depreciation Cover Add-on?

Here is the list of types of people who should buy the zero depreciation cover:

1. New Car Owners – New car owners who have purchased a new car should opt for this cover as depreciation starts since the car is sold. Hence, if a new car gets damaged, one might not get a good amount of claim without this add-on cover.

2. People who have Luxury Cars that have Expensive Parts – If you own a luxury car and it gets hurt due to an accident, it clears that you will have to spend a huge amount on its repair. Hence, a complete amount of claim can only help you to get your car repaired easily.

3. People Living in Accident-Prone Areas – People who reside in accident-prone areas are more likely to get indulged in accidents. Therefore, in order to receive a relevant amount of claim to get their cars repaired they should pick the zero-depreciation cover.

4. New Drivers - People who have just begun to drive a car or a new driver could take a little more time to become an expert and are more likely to get involved in a collision. Hence, this add-on cover is a must for such people.

5. Regular Car Users – Since accidents can bring any amount of damage, hence, it may not be easy for even old car owners to bear the cost of repair. Hence, if your car is eligible to be covered with the zero depreciation plan, you should opt for it.

Benefits of Zero Depreciation Car Insurance Cover

The benefits of zero depreciation car insurance cover are mentioned below:

1. Enhances Coverage: A zero depreciation add-on cover is not just beneficial for amateur drivers but also for experienced drivers. It offers additional protection to the policyholder from financial crises arising due to damages or losses to the car in an accident or mishap. Also, this cover reduces the expenses of policyholders to almost zero.

2. Repair Cost Considered Without Depreciated Value: Cost arising out of replacement or repair of car’s insured parts are resolved without taking into account the depreciated value.

3. Curbs Additional Expenses: Expenses arising out-of-pocket are limited as the cost of depreciation is not considered while going for claim settlement.

4. Save Money in the Long Run: With a zero depreciation cover, the premium amount becomes higher. However, in case of a mishap, the claim amount will not take into account the depreciation of the car hence giving you a higher compensation. This compensation amount is usually much higher than the premium paid for the add-on and

5. Greater Compensation: The limit of the claim you can receive is determined by the policy’s IDV. This is directly affected by the depreciation rate. Hence, with the zero depreciation add-on cover, you can make claims that do not take into account the depreciation rate of the car and receive a higher claim amount.

6. Greater Peace of Mind: Car insurance provides a layer of protection for the car owner and the car by compensating for losses and peace of mind. This is further strengthened by a zero-depreciation add-on cover as it negated the depreciation rate of the car.

Zero Depreciation Car Insurance Vs Comprehensive Coverage

The difference between zero depreciation cover and comprehensive cover can be understood with the help of the table below:


Comprehensive Car Insurance Cover

Zero Depreciation Car Insurance Cover


Low premium amount

High premium amount

Claim Settlement Amount

Low claim settlement amount due to depreciation estimated for all parts of the car.

High claim settlement amount since estimation of depreciation is not done.

Car Parts Repair

50% depreciation is considered on all repairing parts.

Zero depreciation add-on insurance provides cover for all the repairing costs.

Car Age

The depreciation of the car increases with the passing age of the car.

Due to the add-on of zero depreciation, the depreciation will be considered as nil.

Calculate Your Car Insurance

Select your car's brand
  • Maruti
  • Hyundai
  • Honda
  • Toyota
  • Mahindra
Which city is your car registered in?
  • Ahmedabad
  • Bangalore
  • Chandigarh
  • Chennai
  • Gurgaon
When did you buy your car?
Have you made a claim in the previous year?

Impact of Zero Depreciation on Car Insurance

Following is the impact of zero depreciation/nil depreciation/bumper to bumper insurance.

Age of Car

Depreciation Rate Without Zero Depreciation Cover

Depreciation Rate With Zero Depreciation Cover

Under 6 months



6 months to 1 year



1-2 years



2-3 years



3-4 years



4-5 years



5-10 years



Above 10 years



Part of Car

Depreciation Rate Without Zero Depreciation Cover

Depreciation Rate With Zero Depreciation Cover

Paint work / Rubber / nylon / plastic parts, tires and tubes, batteries and airbags parts



Fibre glass parts



Glass parts



What is the Cost of A Zero Depreciation Cover? What Makes it Worth the Price?

In most cases, the zero depreciation cover costs approximately 15%of the car insurance premium. Though it may seem like a steep price for an add-on cover, it is worth the cost as the compensation amount will prove to be significantly higher than the premium.

Things to Keep in Mind About the Zero Depreciation Add-on Cover?

These are a few things to keep in mind when purchasing zero depreciation car insurance:

  • This add-on is available only for cars that are less than five years old.
  • The Zero-Depreciation Cover does not deduct the compulsory deductibles of the policy.
  • There is a limited number of Zero depreciation claims within a year.
  • Zero Depreciation cover and the bumper to bumper to cover offer the same coverage.

How is Zero Depreciation Car Insurance Premium Determined?

The premium for zero depreciation car insurance is determined on the basis of significant factors such as the age of the car, the model of the car and the location on which the policy buyer is based.

How to Get Zero Depreciation Car Insurance Online?

You can easily get zero depreciation car insurance cover online by visiting the website of InsuranceDekho. You can also initiate contact at 7551196989 to talk to InsuranceDekho experts to gain information about the zero depreciation car insurance purchase process and the documents required.

How to Renew Zero Dep Car Insurance Online?

If you want to renew your zero depreciation car insurance online along with your car insurance policy, visit the website of InsuranceDekho. Choose ‘Car Insurance’. Go to ‘Renewal’. Follow steps mentioned under ‘Online Car Insurance Renewal Process Through InsuranceDekho’.

Claim Settlement with Zero-Depreciation Car Insurance Policy

Claim settlement with zero depreciation car insurance add-on policy is smooth. When a claim under this cover is made, the policyholder gets 100% settlement of the cost of the repair of their vehicle. The claim would be easily settled without considering the depreciation factor which takes place due to normal wear and tear. The add-on cover is highly recommended for car owners who want their car claim settlement to be hassle-free and peaceful even if the vehicle has undergone damage or loss.

How Does Zero Depreciation Work?

Zero depreciation car insurance cover works by eliminating the cost of repair or replacement of car parts without considering the depreciated value.

What Do You Need to Know About Bumper to Bumper Insurance?

Bumper to bumper car insurance policy is the car insurance type that provides complete cover for the vehicle despite the depreciation of its various parts. Bumper to bumper insurance is also referred to as nil or zero depreciation insurance.

What Is Not Covered in a Zero Depreciation Addon?

Some of the key exclusions under the zero depreciation car add-on cover are cars more than 5 years old, maximum number of claims, vehicles with more than a specified number of kilometres covered, car engine damage due to oil leakage or water ingression, ear and tear to clutch plates, tyres, bearings, and more, cost of oil, etc.

What Are the Factors Affecting Your Zero Depreciation Car Insurance Premium?

Car’s age & model and location of the policyholder are the prime factors that affect the zero depreciation car insurance premium.

Why Is Zero Dep Car Insurance Better Than a Standalone Comprehensive Car Insurance Policy?

Zero depreciation car insurance is considered better than a standalone comprehensive car insurance policy as it enhances coverage, covers repair cost without depreciation, eliminates additional expense, provides better compensation, saves money in the long run and enhances your peace of mind.

Role of a Zero Depreciation Cover During Claim Settlement

The zero depreciation cover plays a significant role during the claim settlement process by granting full compensation for the vehicle damage/loss. It saves the policyholder from paying additional cost for the depreciation of car parts.

What Is the Additional Premium Payable for a Zero Depreciation Cover?

The additional premium amount for a zero depreciation car insurance cover varies with the car insurance company. It is advised to check the additional premium to be paid before buying the add-on cover.

When Is a Zero Depreciation Claim Null and Void?

A zero depreciation claim is considered as null and void if the person is driving the car without the driving license, if the person is under drugs or alcohol intoxication while driving, if both of the car keys are stolen or lost and car is stolen as well, an FIR is filed at the nearest police station even before the car is missing.

Zero Depreciation Car Insurance

Disclaimer: InsuranceDekho does not endorse, rate or recommend any particular insurance company or insurance plan.

Find Right Car Insurance Quotes by Cars Body Type

  • Hatchback
  • Sedan
  • SUV
  • MUV

Car Insurance Companies Reviews & Ratings

What users are saying
  • Instant policy quotes

    I was able to generate car insurance quotes quickly. I just had to enter my Maruti Wagon R car registration nu...

    Read More
    By Dheeraj Nagpal
    On: 3rd February, 2023
  • Transparent policy issuance

    While paying the premium amount from Universal Sompo car insurance policy to insure my Volkswagen Polo car t...

    Read More
    Universal Sompo
    By Nipun Rangnekar
    On: 3rd February, 2023
  • Say goodbye to paperwork

    I bought a Shriram car insurance policy for my Ford Classic car from InsuranceDekho. I purchased the insuran...

    Read More
    By Shripad Chittor
    On: 3rd February, 2023
  • Got the best policyv

    InsuranceDekho platforms get updated from time to time and offer the latest policy versions at affordable pr...

    Read More
    Iffco Tokio
    By Kedar Vidi
    On: 3rd February, 2023
  • Best insurance firms listed

    Identifying the best car insurance firms is very convenient for InsuranceDekho. I just had to check the deta...

    Read More
    New India
    By Raunak Nigam
    On: 2nd February, 2023

FAQs about Zero Depreciation Car Insurance

  • What is a zero depreciation insurance?

    A zero depreciation insurance is also known as a nil depreciation insurance. It is a kind of insurance plan that provides total coverage without deducting the depreciation value of the car. It simply means that in case your insured vehicle gets damaged in the accident, the insurance provider would compensate you with the entire cost.

  • What is the best zero depreciation car insurance in India?

    Zero depreciation is an add-on cover under which the claim amount is paid by the insurance company without any deduction of depreciation. Most of the car insurance companies allow up to 2 claims under zero depreciation add-on. However, IFFCO Tokio General Insurance Company, Royal Sundaram General Insurance, and New India Assurance allow unlimited zero depreciation claims.

  • What is the significance of buying a zero depreciation add-on cover?

    A zero depreciation add-on cover helps the policyholder in reducing the premium payable towards car insurance plan significantly.The expenses related to depreciation of car components and voluntary deductibles is paid by the policyholder during the claim settlement. However, with a zero depreciation add-on cover, a policyholder is entitled to receive the full sum assured amount. This means that depreciation on car components will not get deducted (except the tyres and tubes). It is highly recommended for all the new car owners to buy a zero depreciation add-on cover.

  • What is IDV or Insured Declared Value in zero depreciation add-on cover?

    Insured declared value is basically the sum assured value that the insured individual would receive in case of complete loss or theft of the insured vehicle. It simply refers to the present market value of the insured car after subtracting the registration cost and depreciation value of the car components.

  • Can I buy a zero depreciation add-on cover after 5 years?

    This depends from insurance provider to insurance provider. Generally, insurance companies allow zero depreciation cover for new cars that are not more than 5 years old. However, in case your car is more than 5 years old, you should talk to your insurance provider for the next suitable course of action. Moreover, there are certain insurance companies that offer zero depreciation cover for cars that are more than 5 years old but only through offline sources.

  • How many times am I allowed to make claims for a zero depreciation car insurance plan?

    Although, a zero depreciation cover is extremely beneficial for new cars yet note that it may limit the number of claims you are eligible to make in a year. This is because your vehicle gets depreciated once in a year. It simply means that without this add-on cover, your insurance provider may consider depreciation. However, it is advised to drive safely and prevent yourself from making any unnecessary claims. Therefore, most of the insurance companies have set a specific limit from the number of times a claim can be raised. So, before purchasing the cover, consult with your insurance company regarding the same.

  • What factors are responsible for affecting premium paid for zero depreciation car insurance?

    The three main factors that affect the premium paid towards your zero depreciation car insurance policy includes car’s Age, car’s Model and location in which you are based.

  • What is the difference between zero depreciation and comprehensive car insurance?

    The main difference is that comprehensive car insurance with zero depreciation is slightly expensive than the standard car insurance policy without zero depreciation. Moreover, the claim amount is higher in the case of comprehensive car insurance with zero depreciation since there is no deduction of depreciation. Click on zero-depreciation cover-versus-comprehensive to know the distinction between the two.

  • Is it true that zero depreciation cover is more applicable only to new cars?

    Generally, a policyholder can avail zero depreciation cover only for the new cars. For this the insurance providers set a certain age limit, wherein if your car happens to cross the age limit specified by the insurer, then you won’t be allowed to buy zero depreciation cover for your car.

Car Insurance News



Partner Car Insurance Companies

Disclaimer: InsuranceDekho does not endorse, rate or recommend any particular insurance company or insurance plan.

Calculate your Car IDV

#Applicable on non-inspection cases i.e. existing policy has not expired or when buying a policy for a new vehicle.