"Zero depreciation" (or "bumper-to-bumper") is the most talked-about car insurance add-on — and the most misunderstood. It can be the difference between paying ₹2,000 and ₹15,000 out of pocket on the same claim. Here's exactly what it does, with the numbers, so you can decide whether it's worth the extra premium for your car.
What depreciation means at claim time
In a regular comprehensive policy, when you claim for parts, the insurer doesn't pay their full price — it deducts depreciation based on the part's material and the car's age. Typical deductions: plastic, rubber and fibre-glass parts ~30–50%, and metal parts on an age-based slab. You cover that deducted portion yourself, on top of the compulsory deductible.
A zero depreciation add-on waives those deductions — the insurer pays the full cost of replaced parts, and you only bear the small compulsory deductible.
A real claim, both ways
Example: a 2-year-old hatchback needs a new front bumper, a fender and repainting after a parking hit — total repair ₹40,000, mostly plastic parts.
- Regular cover: the insurer deducts ~50% depreciation on the plastic parts and applies the compulsory deductible. You could end up paying ₹12,000–15,000 yourself.
- With zero depreciation: no depreciation deducted — you pay only the compulsory deductible (often ₹1,000), so about ₹1,000–2,000.
The zero-dep add-on typically costs ~15–20% more in premium — often a few thousand rupees a year. One decent claim usually pays for several years of that difference.
When it's worth it — and when it isn't
- Worth it: new and near-new cars (roughly under 5 years), expensive models, cars with lots of plastic body panels, and anyone who drives in tight city traffic where small dents are common.
- Skip it: older cars where insurers may not even offer it, or very low-value cars where the premium bump outweighs likely payouts.
Don't confuse it with these
Zero-dep only removes depreciation. It doesn't cover engine water damage (that's Engine Protection) or pay your invoice price on a total loss (that's Return to Invoice). Stack add-ons to your actual risk rather than buying everything — more on that in our premium-reduction guide.
FAQ
Does zero dep cover everything? No — it removes depreciation on parts, but exclusions (like engine water damage) still apply unless separately covered.
Is there a claim limit? Many insurers cap the number of zero-dep claims per year — check your wording.
Is it worth it after 5 years? Usually less so, and some insurers stop offering it on older cars.
Compare your own quotes before renewing. See the full picture in our car insurance guide, and know the reasons claims get rejected so yours doesn't.
