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For most people, their car is one of their most-valued assets. While a comprehensive insurance policy will look after bumps, dents, scratches, and even medical expenses you might incur due to an accident, most policies will not cover you for regular wear and tear of car parts. But, what exactly does this mean?


Let’s say you bought insurance for a new car. For every year since then, you’ve renewed your policy on time, and you’ve never made a claim. However, in the 4th year, you meet with an accident and there’s quite a bit of damage done to your car. When you put in a claim request, your insurance provider will use a formula to understand how much is payable to you. Part of this formula will factor in the depreciation that has taken place since you bought the car, 4 years ago. While your claim will get settled, you may end up having to spend a little extra out of your pocket to pay for a new part.

Thankfully, there is a way you can avoid those hefty out-of-pocket expenses. By opting for zero depreciation cover from your insurance provider, you can safeguard yourself against the part of the formula that factors in depreciation. If you choose to get this additional cover, your insurance provider will cover the entire cost of repairing your car after an accident.

What Exactly Does it Cover?

If you opt for this policy, you can rest assured that you will get 100% cover for your car’s metal, fibre and rubber parts. It is important to keep in mind that in a mechanical breakdown, engine damage due to an oil leak or water ingression, and oil change are not covered under these policies. There is also a limit on the number of claims you can make per year.

Benefits of Zero Dep Insurance Policy

It’s important to remember that zero depreciation insurance is more beneficial to some people over others. If you’re one of the following people, you should definitely think about investing in this additional cover:

  • You have a new car

  • You have a luxury car

  • You’re a new or inexperienced driver

  • You live in an accident-prone area

  • Your car’s spare parts tend to be really expensive

How Much Zero Dep Will?

Zero depreciation car insurance could cost anywhere between 15%-20% more than your regular car insurance policy. But, if you’ve got a car that is less than 5 years old, it’s definitely worth the extra money.

If you choose to add the zero depreciation rider to your regular car insurance policy, you could end up saving yourself a lot of money in the long run. Despite a higher premium, the eventual benefits are definitely worth the increased cost. So, if you’re looking for a policy that offers comprehensive cover with zero depreciation, click here.

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Disclaimer: The content provided is for education and informational purpose only, none of the information contained in our blog amounts to any form of opinion or advice. Please go through policy related documents carefully or consult an expert before making any insurance-related decisions.


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