In this article
- What zero depreciation cover does
- How claims work without it
- Who should buy this add-on
- Limitations to know about
What zero depreciation cover does
Under a standard comprehensive policy, when you claim for damaged parts, the insurer deducts a depreciation percentage from the claim amount for parts like plastic, fibre and metal components — meaning you pay a portion of the repair cost out of pocket even with 'comprehensive' cover.
A zero depreciation add-on (also called bumper-to-bumper or nil-depreciation cover) removes this deduction, so you receive the full claim amount for eligible parts, subject to policy terms.
How claims work without it
Without this add-on, plastic parts might see 50% depreciation deducted, fibre parts 30%, and metal parts a rate based on vehicle age. On a ₹40,000 repair bill, this can easily mean ₹8,000–₹15,000 paid from your own pocket, even though you have a valid comprehensive policy.
Who should buy this add-on
This add-on offers the best value for new cars (under 3–5 years old, depending on the insurer's cutoff), where repair costs are typically higher and depreciation deductions would otherwise be substantial. It's particularly worthwhile for premium or imported vehicles with expensive parts.
Limitations to know about
Most insurers cap the number of zero-depreciation claims you can make per policy year, commonly two. The add-on also doesn't apply to mechanical or electrical breakdown, and typically isn't available for vehicles above a certain age. Engine protection and consumables cover are separate add-ons worth considering alongside it for even fuller protection.
