When buying car insurance in India, you’ve likely come across the term Zero Depreciation Car Insurance or bumper-to-bumper cover. But is it worth the additional cost?
As cars age, their parts lose value — a concept known as depreciation. Standard car insurance policies deduct this depreciation when settling claims. This means you pay a part of the repair cost out of your pocket. However, Zero Depreciation Car Insurance eliminates this deduction, offering complete coverage for replaced parts.
In this article, we’ll explain what zero depreciation cover means, how it works, and whether it’s worth the premium for your car.
What is Zero Depreciation Car Insurance?
Zero Depreciation Car Insurance is an add-on cover that ensures you get the full claim amount without any deduction for depreciation on replaced parts.
When you raise a claim under a standard car insurance policy, the insurer pays only the depreciated value of the damaged parts. However, with zero depreciation cover, you are reimbursed for the full cost of repairs or part replacements.
In simple terms, this policy helps you avoid out-of-pocket expenses during repairs, making it ideal for new and high-value cars.
How Does Depreciation Affect Regular Car Insurance?
Every vehicle part loses value over time due to wear and tear. Insurance companies apply a depreciation rate to these parts when calculating claim amounts.
Here’s how depreciation typically works:
| Car Part | Standard Depreciation Rate |
|---|---|
| Plastic parts | 50% |
| Rubber parts | 50% |
| Fiberglass components | 30% |
| Metal parts | 5–40% (based on vehicle age) |
Let’s take an example:
If your car’s bumper costs ₹10,000 and has 50% depreciation, you’ll receive only ₹5,000 under a regular policy. With Zero Depreciation Car Insurance, you’ll get the full ₹10,000 — saving ₹5,000 instantly.
Benefits
Here are the top advantages of opting for zero depreciation cover:
- Full Claim Settlement – You receive the total repair or replacement cost, without deductions.
- Peace of Mind – No stress about depreciation calculations or extra repair expenses.
- Higher Savings – The small extra premium saves you from major expenses in case of damage.
- Better Resale Value – Keeps your car well-maintained with genuine part replacements.
- Ideal for New Cars – Especially beneficial for cars less than 5 years old.
Limitations You Should Know
While this Insurance offers excellent protection, there are a few points to keep in mind:
- The premium is higher, usually 10–20% more than a standard policy.
- Most insurers limit the number of claims under this cover (typically two per policy year).
- Cars older than 5 years may not be eligible for this add-on.
- It doesn’t cover mechanical breakdowns or damages due to normal wear and tear.
So, while it offers great benefits, it’s important to review your insurer’s terms before purchasing.
Is Zero Depreciation Car Insurance Worth the Extra Cost?
If you’re wondering whether paying a bit more for this cover makes sense — the answer depends on your car and driving habits.
- For new or luxury cars, this cover is almost essential.
- If you live in metro cities with heavy traffic, your risk of minor accidents is higher.
- Even a small scratch or bumper replacement can cost thousands — zero depreciation ensures you don’t pay anything extra.
Example Calculation
Let’s assume:
- Standard premium: ₹12,000/year
- Zero Depreciation premium: ₹14,000/year
If your car faces damages worth ₹60,000, the depreciation deduction may be ₹15,000–₹20,000. Paying ₹2,000 extra in premium saves you ₹18,000 during claims — clearly a smart deal.
How to Buy Zero Depreciation Car Insurance Online
Getting the right zero depreciation cover is easy with KaroInsure.
Here’s how you can get started:
- Visit KaroInsure’s website and enter your vehicle details.
- Compare top-rated insurance providers and plans.
- Choose the Zero Depreciation Car Insurance add-on.
- Review premium details and make secure online payment.
You’ll receive your policy instantly via email — quick, paperless, and hassle-free.
Tips Before Buying Zero Depreciation Car Insurance
- Always check the age eligibility of your car.
- Review the claim limit per policy year.
- Ensure cashless garage network availability near your location.
- Compare multiple insurers before finalizing your policy.
By keeping these tips in mind, you can ensure maximum coverage and value for your premium.
Conclusion
Zero Depreciation Car Insurance is more than just an add-on — it’s a financial safety net that protects you from hidden repair costs. For anyone owning a new, expensive, or frequently used car, this cover is absolutely worth the additional cost.
Protect your investment, drive confidently, and handle accidents without stress. Compare and buy the best Zero Depreciation Car Insurance in India today — only on KaroInsure.
Leave a Reply