What is zero depreciation cover in car insurance?
Zero Depreciation Cover is a popular add-on in a motor insurance policy that eliminates deductions for depreciation during claim settlement. With a standard car insurance plan, depreciation is deducted from the value of replaced parts, meaning you pay more from your pocket. But with zero depreciation car insurance, you receive the full cost of repair or replacement, regardless of the wear and tear of vehicle parts like plastic, rubber, or fibre.
Whether you own a brand-new vehicle or a well-maintained used car, zero depreciation cover ensures that your car's current market value doesn’t reduce your claim eligibility.
Key features of zero depreciation insurance cover
Full claim settlement without factoring in part depreciation
Covers plastic, rubber, glass, and fibre components
Available as an add-on to comprehensive car insurance
Slightly higher premium with significantly lower out-of-pocket expenses
The number of claims allowed within a policy year varies by insurer. For Zuno, the limit is two claims per year.
Top benefits of zero-depreciation car insurance
100% repair cost coverage without depreciation deductions
Ideal for new cars and first-time owners seeking maximum financial protection
Lower out-of-pocket costs during accidental repairs
Protects your savings from repair shocks
Boosts the value of your motor insurance policy, making every claim count
What’s covered under the zero depreciation cover?
Replacement costs of plastic, rubber, glass, and fibre parts
Repair costs for body panels, lights, bumpers, etc.
Full compensation on claims (up to policy limits), without deduction for part depreciation
Applicable to vehicles usually less than five years old
What’s not covered under the zero depreciation cover?
Regular wear and tear beyond the car’s age limit (typically over 5 years) is excluded.
Mechanical breakdowns without an associated accident claim are not covered.
Total loss or constructive total loss claims are settled based on the car’s market value, not considering Zero Depreciation.
Claims are rejected if the car is driven without a valid driving licence or under the influence of alcohol/intoxicating substances.
Comparison: Standard vs Zero Depreciation Car Insurance
Feature | Standard car insurance | Zero depreciation car insurance |
|---|---|---|
Claim Settlement | Deducts depreciation | Full settlement without depreciation |
Premium | Lower | Slightly higher |
Out-of-Pocket Cost | Higher | Minimal |
Ideal For | Experienced drivers, older cars | New drivers, new/used cars < 5 yrs |
Add-On Required | No | Yes (Add-on to comprehensive plan) |
Is zero depreciation car insurance right for you?
Here’s who benefits the most from zero depreciation car insurance.
Owners of brand-new cars
If you’ve just purchased a new car, you’ll want to keep it in pristine condition and protect your investment. Comprehensive coverage ensures your vehicle is safeguarded against accidents, theft, and unforeseen damages, giving you peace of mind as you enjoy your new ride.
Used car owners
If you own a used car, you might still face unexpected costs from accidents or repairs. Comprehensive insurance can provide added financial protection, ensuring that your car remains covered even when unexpected situations arise.
First-time car owners
For those who are new to driving, mistakes can happen while you’re learning. Comprehensive coverage is ideal for first-time car owners as it offers an extra layer of protection, helping you feel confident and secure while improving your driving skills.
Drivers seeking full coverage:
If you value complete peace of mind, comprehensive insurance is worth the slightly higher premium. It provides extensive protection against a wide range of risks, making it an excellent choice for those who want to minimize potential out-of-pocket costs.
When should you add zero depreciation to your car insurance policy?
You can opt for zero depreciation insurance either:
- While buying a new motor insurance policy, or
- At the time of renewal of your existing plan
Always review the terms; some insurers may restrict eligibility to cars below a certain age (typically 5 years or less).
How does zero-depreciation car insurance work?
Let’s say your bumper is damaged in an accident.
- Without zero depreciation cover, only a partial amount is reimbursed after factoring in depreciation.
- Withzero depreciation insurance, you get full reimbursement, including the cost of parts like plastics and rubber, with no deductions.
This applies to both zero-dep insurance for new cars and used vehicles, making it a smart choice across categories.
Things to keep in mind before buying nil depreciation in Insurance
Vehicle age
Some insurers restrict the zero depreciation add-on to cars that are less than five years old, as older vehicles are more prone to wear and tear. Make sure to check your vehicle's eligibility before opting for this policy.
Claim limit
Certain policies may impose a limit on the number of claims you can make annually under this cover. For instance, some insurers might allow only two zero depreciation claims per year. Always read the fine print carefully to understand these restrictions.
Cost vs. Coverage
While zero depreciation car insurance policies offer excellent protection by covering the full cost of repairs without factoring in depreciation, they often come with higher premiums. Compare your options thoroughly to ensure you're paying a fair price for the level of protection you need.
Steps to buy zero depreciation car insurance cover online with Zuno
1. Enter your car number
Visit the Zuno car insurance page and enter your vehicle registration number (e.g., MH04DK8066) to fetch your car details.
2. Choose your motor insurance policy & add-ons
Select the base plan that fits your needs and add the zero depreciation cover as an add-on to your comprehensive policy.
3. Review your premium details
Get a transparent breakdown of your car insurance premium, including the cost for zero depreciation insurance. Use our calculator to estimate your savings.
4. Make payment securely online
Pay using UPI, credit/debit card, or net banking. Your policy will be activated instantly upon successful payment.
5. Complete KYC and receive your policy document
Share your nominee and vehicle details to complete the process. Your digital zero-depreciation car insurance policy will be issued immediately.
How to renew your insurance online with Zuno
Verify with your mobile number
Go to the renewal page and enter your mobile number. Enter the OTP sent to your phone for verification.
Enter your policy number
Provide your existing motor insurance policy number to auto-fetch your details.
Review and customise
Check your current coverage. If needed, modify add-ons like zero depreciation insurance before proceeding.
Pay and download your renewed policy
Confirm the premium and make your payment. Your renewed policy will be sent to your email and available on your Zuno dashboard.
Filing a claim under zero depreciation car insurance with Zuno
Call the helpline
Reach out to our 24/7 support team with your policy details.
Explain your situation
Share your vehicle’s location and describe the issue — whether it’s a breakdown or accident — so we can dispatch support quickly.
Get end-to-end assistance
We’ll send a tow truck (if required) and guide you through a seamless, zero-depreciation insurance claim process with cashless repairs at a network garage.
Conclusion: Is zero depreciation cover worth it?
Absolutely! If you're looking for maximum protection and minimal repair costs, zero depreciation car insurance is the way to go. Whether you're insuring a new ride or renewing a trusted one, this add-on ensures full claim settlement and complete peace of mind.
With Zuno, you can buy, renew, and manage your motor insurance policy online with ease, and add zero depreciation cover in just a few clicks.