Zero Depreciation Car Insurance

Zero Depreciation Car Insurance Add-on Cover

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 handy.

What is Zero Depreciation 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.

Zero Depreciation Car Insurance Add-on Cover should be ideally opted by the following:

  1. New car owners
  2. People who have luxury cars which has expensive parts
  3. People living in accident-prone areas
  4. New drivers
  5. Regular car users

What is your car's brand?

When did you buy your car?
Have you made a claim in the previous year?

Zero Depreciation Car Insurance vs Normal Car 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



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Zero Depreciation Car Insurance FAQ

  • What is a zero depreciation cover in car insurance?

    Zero depreciation​ car insurance​ policy is an add-on cover under which the entire claim amount is paid by the Car Insurance Company without deducting the depreciation on the value of the car.

  • 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.

  • Can I claim bumper-to-bumper insurance if I damage my own car in an accident?

    Yes, you can claim bumper-to-bumper insurance if you have damaged your car in an accident.

  • Can I convert third party insurance for my car into zero depreciation insurance?

    Yes, you will have to get a comprehensive car insurance plan and enhance its coverage by opting for the zero depreciation cover. Third-party insurance will still be a part of this plan and you can get the coverage of both the policies.

  • What will I get covered in zero depreciation of car insurance?

    Zero depreciation is an add-on cover that covers the Expenses incurred on repair or replacement of insured parts without taking into consideration the depreciation value. It increases the coverage of the basic car insurance, thereby reducing your expenses to almost nil.

  • Should I buy zero depreciation car insurance?

    Yes, it is advisable to opt for a zero depreciation car insurance add-on policy as it offers complete coverage for your car against damages caused due to unforeseeable event without deducting the depreciation.

  • Is zero depreciation insurance required for cars?

    It is not a mandatory cover, but one should opt for this add-on in order to avail of additional coverage and benefits with your standard car insurance policy.

  • 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.

  • What is not covered by zero depreciation car insurance?

    Zero depreciation does not provide coverage if your car is more than 5 years old, cost of fuel, mechanical breakdowns, driving under the influence of alcohol etc.

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