zero depreciation car insurance or Nil depreciation car insurance

zero depreciation car insurance

In a zero depreciation car insurance or Nil depreciation car insurance policy the insured gets the total cost of the damage or loss that is caused to the insured vehicle . The depreciation value of the replaced or damaged parts is usually deducted at the time of claim, but with ‘nil-dep’ policy one can claim the full amount.

Imagine you’re driving your vehicle and you accidentally hit another. You’re okay but your vehicle needs some serious repairs.

what is zero depreciation in car insurance ?

With time and usage, each part of the vehicle wears out. Owing to this, the value of these parts decreases as well. This depreciation is directly related to the age of the vehicle. So, when you create a claim, the insurer calculates the value of your car or vehicle its part after factoring in depreciation, and only then do you get the settlement all amount.

Key Features of Zero Depreciation vehicle or Car Insurance:

  • Simple Claim Process
  • Road Side Assistance
  • 7500+ Cashless Garage Network
  • Retaining NCB from Previous Policy

Click here to buy Zero Depreciation Car Insurance

zero depreciation car insurance

It is also include in first party car insurance. when you get first party car insurance this time include zero depreciation car insurance but some extra money charges for zero depreciation car insurance.

zero depreciation car insurance online ?

you car get online zero depreciation car insurance its very easy for payment . if you want to zero depreciation car insurance online then please see google pay, Paytm or Phonepe etc. many people pay online like UPI .

Zero Depreciation: How to make the most of it!

Aren’t you glad you have vehicle insurance and now the insurer will pay for it?

But what if you don’t get the claim amount you were expecting and have to pay some out of your own pocket? Not what you had expected, right?

This is what nill depreciation cover does to your claims.

The rate of depreciation for all parts is as follows –

Subject to a deduction for depreciation at the rates mentioned below in respect of the parts replaced For All Rubber/ Nylon/ Plastic Parts, tires, tubes and batteries 50% For Fiber glass components 30% For All Parts made of Glass zero

The rate of depreciation for all parts including wood is as follows –

AGE OF car % OF DEPRECIATION Not exceeding 6 months Nil Exceeding 6 months but not exceeding 1 year 5% Exceeding 1 year but not exceeding 2 years 10% Exceeding 2 years but not exceeding 3 years 15% Exceeding 3 years but not exceeding 4 years 25% Exceeding 4 years but not exceeding 5 years 35% Exceeding 5 years but not exceeding 10 years 40% Exceeding 10 years 50%

This means, if you make a claim of Rs 10000 for your 4-year-old car, the insurer will not pay more than Rs 6500. This is why every vehicle should have depreciation reimbursement cover or add-on.

What is zero depreciation & how does it work?

Depreciation reimbursement cover can only be used for the first two claims in the policy period, so be prudent with your claims. But rest assured, in a claim where no parts are replaced and thus therefore no depreciation has been deducted, it won’t be counted as a claim under the cover.

Is zero depreciation required for car?

Additionally, you can also opt for add-on coverages like personal accident cover, zerodepreciation cover, hospital daily cash benefit, etc.


Pros and Cons of ZeroDepreciation Policy.

ParameterZero Depreciation PolicyStandard Policy
Age of the carNew cars up to 3 yearsAny car above 3 years old and less than 15 years
Zero Depreciation

% of Depreciation in Vehicles

Age of Vehicle% of Depreciation
Not Exceeding 6 months5%
Exceeding 6 months but not exceeding 1 year15%
Exceeding 1 year but not exceeding 2 years20%
Exceeding 2 years but not exceeding 3 years30%
Exceeding 3 years but not exceeding 4 years40%
Exceeding 4 years but not exceeding 5 years50%

% of Depreciation in Vehicles (Metallic Parts)

Age of Vehicle% of Depreciation
Below 6 monthsNil
Exceeding 6 months but not exceeding 1 year5%
Exceeding 1 year but not exceeding 2 years10%
Exceeding 2 years but not exceeding 3 years15%
Exceeding 3 years but not exceeding 4 years25%
Exceeding 4 years but not exceeding 5 years35%
Exceeding 5 years but not exceeding 10 years40%
More than 10 years50%

How much will a Zero Depreciation Addon Cover Cost? Is it worth it?

Generally, the cost of opting for a zero depreciation addon cover in your comprehensive policy will be approximately an additional 15% over your comprehensive car insurance premium.

When you’re paying just a 15% additional premium for your car’s overall protection, it’s completely worth it since the amount you will save during claims will be much higher than the cost of the addon. 

Know more about:

Difference between Zero Depreciation and Comprehensive Car Insurance

Zero Depreciation Car InsuranceComprehensive Car Insurance
What is it?A zero depreciation cover is an optional addon you can opt for in your car insurance policy. Having this addon in your plan ensures your insurer won’t charge for your car’s depreciation during claims and hence, you won’t be liable to pay for the cost of depreciation of your car’s parts during claims.A comprehensive car insurance policy is a type of car insurance policy that covers for your car’s own damages and third-party damages. This type of policy can further be customized for extensive coverage.
PremiumOn opting for this addon, your comprehensive car insurance premium will increase by approximately 15%.The premium for a standalone comprehensive car insurance policy is lower than that of a comprehensive car insurance policy with addons.
Cost of DepreciationHaving a zero depreciation addon means you don’t need to pay for the cost of depreciation during your car insurance claims.In a comprehensive car insurance policy, you will be required to pay for the cost of depreciation of your car’s parts during car insurance claims.
Age of the CarA zero depreciation addon can be opted for all cars that are less than five years old.A comprehensive car insurance policy can be opted for all cars that are less than fifteen years old.
How much do you save?While you pay a slightly higher premium, your long term savings are high as you aren’t required to pay for your car’s depreciation costs during claims.The only saving you have is the extra premium you would save on by not opting for addons.

Role of a Zero Depreciation Cover During Claim Settlement

The main role of a nill-depreciation cover during claims is to save the money you’d be spending from your pocket. Let’s take an example to make this simple for you;  If your total claim amount payable is Rs 20,000 and the total cost of your car’s part depreciation is Rs 6,000 then, without having a nill-depreciation cover- your insurer will account for this cost and only pay you Rs 14,000. However, if you have a nill depreciation or nill depreciation cover then, you will receive the entire Rs 20,000 as your claim amount

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