"Zero depreciation" (bumper-to-bumper) is the most talked-about add-on and the most misunderstood. Here's exactly what it does, with numbers, so you can decide for your car.
What depreciation costs you at claim time
In a regular policy, the insurer deducts depreciation on replaced parts — roughly 30–50% on plastic/rubber/fibre parts and an age-based slab on metal. You pay that portion, plus the compulsory deductible. Zero-dep waives the depreciation, so you only bear the small compulsory deductible.
The same claim, both ways
| ₹40,000 bumper + fender repair (2-yr-old car) | Regular cover | With zero-dep |
|---|---|---|
| Depreciation deducted | ~50% on plastic parts | None |
| You pay out of pocket | ₹12,000–15,000 | ₹1,000–2,000 |
| Extra premium | — | ~15–20% (a few thousand/yr) |
When to buy it — and when to skip
- Buy: new / near-new cars (under ~5 yrs), pricier models, lots of plastic panels, tight city driving.
- Skip: older cars (insurers may not offer it) or very low-value cars where the premium bump outweighs likely payouts.
Zero-dep only removes depreciation — it doesn't cover engine water damage or pay your invoice on total loss. Stack add-ons to your actual risk; see the premium guide.
FAQ
Does it cover everything? No — exclusions like engine water damage still apply unless separately covered.
Claim limit? Many insurers cap zero-dep claims per year — check your wording.
Compare quotes before renewing. Background: the full insurance guide and why claims get rejected.
