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Zero depreciation car insurance means an insurance add-on where the depreciation value of any damaged or replaced car parts is not deducted from your insurance claim. Depreciation is made on the reduction in the value of the car’s part with age. With the Zero depreciation insurance add-on cover, you can claim the complete amount. Zero depreciation car insurance is also called bumper-to-bumper cover.

Zero Depreciation Car Insurance Plans

Car Insurance Provider

Highlighting Features

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Bajaj Allianz Car Insurance

  • Save more with Zero Dep Cover

  • Enjoy a wide garage network of 4000+ 

  • 24*7 customer support

  • Easy claim settlement

  • Online purchase and renewal of plan

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Acko Car Insurance

  • Enjoy the ease of digital-only model

  • Enhanced coverage of 8+ add-ons

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HDFC Ergo Car Insurance

  • Over 8200 garage support

  • Get an NCB up to 50%

  • Quick claim settlement

  • Zero depreciation cover available

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SBI General Car Insurance

  •  Claim ratio settlement of 98.00%
  • Multiple Add-on Covers
  • Cashless Claims
  • Minimal Documentation
  • 24*7 Customer Care

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How to Buy/Renew Zero Depreciation Car Insurance Online?

Zero Depreciation Car Insurance Cover can be quickly purchased online without having to go anywhere. With the following simple steps, you can buy zero depreciation car policy for your vehicle:


  • Go to the ‘Car Insurance Premium Calculator’ page.

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

  • Before you proceed make sure to choose zero dep car insurance policy or select the zero depreciation add-on. 

  • Fill the form and read the inputs properly to avoid any errors.

  • Attach the documents as required.

  • 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 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. It makes 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.

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. Inclusion refers to the coverage provided and exclusions are the conditions that cannot be covered by the company. 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 impact 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 (that includes 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 claims of zero depreciation cover 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

  • 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.

  • Vehicles that are over five years old aren’t eligible to avail this rider because much of the original value has declined by this point in time.

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

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

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

Why Should You Buy Zero Depreciation Car Insurance From Bajaj Markets?

Competition in the insurance policy market may make it a tough game for the customers to choose the right plan. Bajaj Markets makes it easier for you to make a choice by comparing various plans available. To make your decision easier, have a look at some of the benefits of purchasing a zero depreciation car insurance policy from Bajaj Markets:

  • Trust of millions

With more than 100 million customers across the country, Bajaj Markets feels proud in providing quick and hassle-free services.

  • Assistance

Bajaj Markets provides round-the-clock assistance, no matter where you face the problem. Contact the company’s call centre to seek help in case of emergencies. 

  • Minimum documentation

Bajaj Markets lets you purchase your preferred zero depreciation plan without any hectic paperwork. With minimal paperwork, the plan is successfully purchased

  • Quick Claim Process

Bajaj Markets offers all assistance to help you with a simple, quick and hassle-free experience. You can enjoy the ease of a cashless claim at a network garage.

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Check Out Car Insurance Partners Available at Bajaj Markets

FAQs on Zero Depreciation Car Insurance

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

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

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.

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

  • A car is a property of depreciating nature. With time, the value of various parts will decrease which may impact your claim amount heavily. However, with a Zero depreciation car insurance policy, the insurer will not depreciate the value of your car.

  • IDV refers to the Insured Declared Value. It is the market price of your car that an insurance company agrees to pay you in case your car suffers total loss or theft.

While zero dep is a great add-on option, this is 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.

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

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

Depending on the frequency of your claims, a zero depreciation car insurance plan can be beneficial. If your car is above 5 years of age, you cannot purchase a zero depreciation car insurance policy.

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

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

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