Zero Depreciation Car Insurance

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.

Car Insurance Provider	Highlighting Features	Check Plans
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	Check Plans
TATA AIG Car Insurance	7500+ garages across India Quick claim settlement Roadside assistance cover available	Check Plans
HDFC Ergo Car Insurance	Over 8200 garage support Get NCB up to 50% Quick claim settlement Zero depreciation cover available	Check Plans
SBI General Car Insurance	Multiple Add-on Covers Cashless Claims Minimal Documentation 24*7 Customer Care	Check Plans

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.

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.

• 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.

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

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:

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: 

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.

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