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Zero depreciation car insurance is an add-on cover where the depreciation value of any damaged or replaced car parts is not deducted from your claim. The value of a car’s parts depreciates with age. With this insurance add-on cover, you will be able to claim the complete amount.

Zero Depreciation Car Insurance Plans

Car Insurance Provider

Highlighting Features

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Bajaj Allianz Car Insurance

  • Save more with zero dep insurance

  • Enjoy a wide garage network of 4000+ 

  • 24*7 customer support

  • Easy claim settlement

  • Online purchase and renewal of plan

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TATA AIG Car Insurance

  • 7500+ garages across India

  • Quick claim settlement

  • Roadside assistance cover available

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HDFC Ergo Car Insurance

  • Over 8200 garage support

  • Get NCB up to 50%
  • Quick claim settlement
  • Zero depreciation cover available

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SBI General Car Insurance

  • Multiple Add-on Covers
  • Cashless Claims
  • Minimal Documentation
  • 24*7 Customer Care

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Impact of Car Depreciation

All cars tend to lose their value over time. Moreover, the regular wear and tear of vehicle parts can also cause depreciation. This has a huge role in deciding your car insurance premium, as insurers check the vehicle’s present value and reduce the depreciation rate to calculate the IDV.

How to Buy/Renew Zero Depreciation Car Insurance Online?

A zero depreciation car insurance cover can be quickly purchased without having to go anywhere. You can easily buy zero depreciation car policy for your vehicle online in the following manner:

  • Go to the ‘Car Insurance Premium Calculator’ page 

  • Enter details such as car make and model, etc. 

  • Before proceeding, make sure to choose zero depreciation car insurance policy or the zero depreciation add-on

  • Fill the form and read the details properly to avoid any errors

  • Attach the documents as requested

  • Submit the form with the attached scanned copy of the necessary documents

  • Make a quick online payment


Once the payment is done successfully, you will receive a confirmation email and message. You can also download a copy of your zero depreciation car insurance policy.

Benefits of Zero Depreciation Cover in Car Insurance

  • Get Higher Claim Settlements

With a zero depreciation insurance plan, car owners can benefit from having their insured claims settled without the depreciation value being deducted.

  • Peace of Mind

Zero depreciation car insurance coverage allows you to enhance the basic coverage of your car insurance plan, thereby making for a prudent investment. With such an add-on cover, you can rest easy knowing that the insurer has your back in the event that you have an accident involving your car.

  • Greater Resale Value

Zero depreciation insurance for a car means it acquires a greater resale value as long as this add-on rider is active.

Who Should Opt for Zero Depreciation Cover?

You can get a zero depreciation cover if you are:

  • New driver

  • Luxury car owner

  • Car owner with costly spare parts

  • Looking for reduction in out-of-pocket expenses

  • Driving in accident-prone areas

Inclusions and Exclusions Under Zero Depreciation Cover

Zero Depreciation car insurance policy lets you enjoy several benefits. Before you purchase the plan, it is vital to know the inclusions and exclusions of the plan. Check the table below for details:

Inclusions of Zero Depreciation Car Insurance 

Exclusions of Zero Depreciation Car Insurance 

Depreciation of all the fibre parts

Damage to the engine caused due to leakage of oil or water ingression

Depreciation value of all metal parts

Mechanical breakdown of the car

Depreciation of all rubber parts

Cost of replacing consumables

Impact of Zero Depreciation on Car Insurance Premiums

When you choose to buy a zero depreciation add-on cover with your car plan, the cost of the add-on will be added to your total car insurance premium. As a result, the premiums will be higher.


Here are some other important factors that also affect car insurance premium costs:

  • Age of the Vehicle Under Consideration

The newer a vehicle is, the more valuable it is. On the other hand, the older a vehicle is, the less valuable it may be.

  • Make and Model of the Vehicle

The make and model of the vehicle under consideration impacts the overall cost of the premium tethered to a comprehensive car insurance policy.

  • Residential Area

The location in which you purchase and drive your vehicle can impact what your premium (including zero depreciation cover) amounts to. Areas that are more susceptible to natural disasters, for instance, may have higher premiums tethered to them.

  • Price of the Vehicle

The actual cost of the car also affects insurance premiums (including zero depreciation cover) as the price of the car is considered when determining the Insured Declared Value (IDV) of a vehicle.


The IRDAI specifies the depreciation of car parts, which is calculated as per the car’s age: 

Age of Car 


0 to 6 months 


6 months to 1 year 


1 year to 2 years 


2 years to 3 years 


3 years to 4 years 


4 years to 5 years 


How Much Will a Zero Depreciation Add-on Cover Cost?

As this is an add-on rider that can be bought on top of a comprehensive car insurance plan, the cost for it ordinarily ranges around 10% to 15% above the primary premium amount. This cover is worth purchasing and is frequently endorsed by insurance experts. This is because by paying a modest sum of money, you are entitled to financial protection for your vehicle against depreciation.

Zero Depreciation Car Insurance Vs Comprehensive Coverage


Zero Depreciation Cover 

Comprehensive Insurance Cover

Coverage (Glass, plastic, metal parts)

This add-on cover does not provide coverage against the depreciation costs for these parts. 

Depreciation for these parts is covered prior to the payment of the claim amount. 


Premium is slightly greater than that of a comprehensive insurance cover.

Premium Amount is lesser than that of the zero depreciation cover.

Claim Settlement

The amount of claim will be more since the depreciation will not be considered.

The amount which you will receive will be lower since the depreciation will be considered.

Cost of Repair (Plastic Parts)

Covered by the insurance provider.

Usually not covered by the insurance provider.

Age of the Car

Depending on the insurance provider, it is typically available for a span of 3 years to 5 years.

Applicable for vehicles of any age.

Number of Claims 

There are restrictions on the number of zero depreciation cover claims which you can make

There are no restrictions on the number of claims you can make. You can make an unlimited number of claims.

When is Zero Depreciation Claim Null and Void

Here are the scenarios where the zero depreciation claim can become null and void:

  • If you happen to drive the insured vehicle without a valid licence and damage the car in any capacity, coverage will not be provided for the same

  • If you have an accident while driving your insured vehicle under the influence of intoxicants, this cover will not be applicable.

  • Compulsory deductibles that may be included with a base car insurance plan are not covered by the insurance plan

  • Additional costs associated with the purchase of coolants, brake oil, and engine oil are not covered under zero depreciation cover

FAQs on Zero Depreciation Car Insurance

Can I buy a zero depreciation add-on cover online?

Yes, most insurance companies allow you to buy insurance plans with add-on covers online.

Can I buy the zero depreciation cover without getting comprehensive car insurance?

Add-on covers are only available with comprehensive insurance plans. You cannot purchase the zero depreciation cover without buying a comprehensive car insurance policy.

Is it compulsory to buy zero depreciation cover?

No, it’s not mandatory to buy this cover. However, if you have a new car and wish to give it the utmost protection, getting a zero depreciation cover is ideal.

Can I buy zero depreciation cover for an old car?

You can only buy zero depreciation cover for cars that are between the ages of 0 and 5 years.

Is Zero Depreciation Insurance Cover better than Comprehensive Car Insurance?

While zero depreciation is a great add-on option, this can be a subjective topic because for different people, different car insurance plans can be the best ones. Depending on your requirements, you can pick one, however, when you purchase a new car, it is recommended that you opt for this add-on.

Can I get zero depreciation insurance after 5 years of owning a car?

No. A zero depreciation car insurance policy is only valid for cars that are not more than 5 years of age.

How many times can I claim zero depreciation insurance?

With the zero depreciation car insurance policy, you can raise a maximum of two claims per year.


Can I transfer the zero depreciation cover to another owner?

Yes. During car insurance policy transfer to the new owner, you can also transfer the zero depreciation cover.


Is zero depreciation insurance available for commercial vehicles?

Depending on the insurance company, you may or may not get a zero depreciation car insurance policy for commercial vehicles.


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