What Is Zero-Depreciation Cover?
Also known as “Nil Dep” or “Bumper-to-Bumper” insurance, it’s an add-on that ensures you get full claim amount without deduction for depreciation on car parts.
🔧 How Regular Insurance Works
Without Zero-Dep Cover, insurers deduct depreciation on parts during claim:
| Car Part | Depreciation Deducted |
|---|---|
| Plastic/Fiber parts | 30–50% |
| Metal parts | 20–50% |
| Paint work | 25% |
| Rubber/nylon (tires, tubes) | 50% |
You pay the rest out of pocket.
💸 How Zero-Dep Saves You
| Example (Minor Collision Repair) | Regular Insurance | With Zero-Dep Cover |
|---|---|---|
| Repair Cost | ₹40,000 | ₹40,000 |
| Depreciation Deducted | ₹10,000 (approx.) | ₹0 |
| Claim Amount Paid by Insurer | ₹30,000 | ₹40,000 |
| You Pay | ₹10,000 | ₹0 |
✅ Who Should Get Zero-Dep Add-On?
- Cars less than 5 years old
- High-end or luxury vehicles
- First-time car buyers
- People living in high-traffic or accident-prone areas
🧾 Cost of Zero-Dep Add-On
- Typically adds 15–25% to your base premium
- Still cheaper than paying out-of-pocket during a claim
🚦 Bottom Line
One major repair can cost more than the add-on itself.
✔️ Worth it if you want maximum claim payout
✔️ Saves big on plastic, metal, and paint jobs
✔️ Provides peace of mind during accidents
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