Why Car Experts Strongly Recommend Zero Depreciation Cover Over Basic Car Insurance Policies

You’ve insured your car, paid the premium, and expect full support during repairs. But when the bill comes, your claim covers less than it should. This is due to depreciation deductions. Zero depreciation car insurance solves this. Let’s break down why experts recommend this cover over basic car insurance plans.

What is Zero Depreciation in Car Insurance and How is it Different?

Zero depreciation car insurance is an add-on that excludes depreciation from your claims. Normally, insurers reduce the payout to account for the wear and tear on parts. This can significantly reduce the money you receive, even for minor repairs.

With this cover:

• You receive the full cost of repair or replacement.
• There’s no deduction for age-related part depreciation.
• It’s available for cars up to 5 years old (in most cases).

Key Differences:

5 Reasons to Choose Zero Depreciation Car Insurance Over Basic Covers

Most parts of your car – bumpers, headlights, rubber seals – lose value as your car gets older. A standard car insurance policy deducts for that depreciation when settling claims. So, even if your bill is ₹25,000, you may only receive ₹17,000. But with zero depreciation car insurance, that gap doesn’t exist. You receive a payout that matches the amount spent at the garage.

Here are five key reasons why car owners who want full coverage lean towards this add-on:

Reason 1: More Value From Every Claim

With zero depreciation car insurance, the insurer pays for the entire cost of parts, regardless of their age.

You benefit more if:

• Your car is new or under 5 years old
• You drive often or live in high-traffic areas
• You own a vehicle with expensive or imported parts

Here's how the difference looks in practice:

Reason 2: Better Coverage for Plastic, Rubber, and Fibre Components

Modern cars have more non-metallic parts than ever before. These parts depreciate more quickly and are more expensive to replace.

Parts affected most by depreciation:

• Front and rear bumpers
• Side mirrors
• Roof rails
• Rubber window linings
• Plastic panels under the body

Basic policies deduct for these parts. Having a car insurance with a zero depreciation add-on, you get back what you spend every time.

Reason 3: Ideal for Multiple Claims in a Year

Even if your driving is careful, city roads and tight parking spaces increase the chances of minor accidents. With a basic policy, every claim sees a deduction. But if you make two or more claims in a year, that gap adds up quickly. Zero depreciation car insurance gives you more consistency across multiple claims. For high-traffic driving or first-time car owners, this makes financial planning easier and more predictable.

Reason 4: Adds Long-Term Value to Your Vehicle

Many people hesitate to add zero-depreciation car insurance because of the slightly higher premium. However, it’s essential to view this not as a cost, but as a long-term savings. You pay a bit more upfront, but avoid paying large amounts during repairs. Even one claim can help recover the entire additional premium.

For example, if you pay an additional ₹2,500 per year and save ₹7,000–₹10,000 per claim, the numbers speak for themselves. A vehicle maintained under zero depreciation car insurance often looks better on paper and in reality.

When you eventually sell or exchange your car:

• The claim history shows fewer out-of-pocket expenses
• Prospective buyers feel more confident
• You maintain service records without cost-cutting during repairs

This cover also helps retain your car’s condition over time, especially when replacements are needed for non-metallic parts. You benefit even more if:

• You’ve financed your car
• You plan to keep your car in good condition
• You want your ownership journey to be stress-free

Reason 5: Practical Peace of Mind
During an emergency, the last thing you want to worry about is your claim amount.

Zero depreciation car insurance takes out the guesswork. It allows you to focus on getting repairs done, not on calculating losses.

It’s particularly useful in:

• Urban areas with dense traffic
• Areas prone to waterlogging or bad roads
• Long-distance commutes

It also supports those who may not have time to deal with multiple follow-ups or cost disputes during claims.

Should You Choose Zero Depreciation Cover?

Consider this cover if any of the following apply:

• Your car is under 5 years old.
• You drive daily, especially in cities.
• You own a luxury or premium segment vehicle.
• You plan to sell your car in the next few years.
• You want full value for repairs, every time.

Opting for zero depreciation in car insurance is a smart step if you want consistent value from your policy. It eliminates guesswork during claims, covers more parts, and provides real cost savings over time. If your goal is long-term peace of mind, this add-on is well worth considering at your next renewal or when purchasing a new car.