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May 10 2013

Why is Zero Depreciation Cover Beneficial?

Zero Depreciation or Zero Dep covers are nowadays the popular choice for more and more car buyers and insurance renewal clientele. Car buyers in the top and mid-segment are the majority of buyers who opt for a Zero Depreciation cover for their cars.


Zero Depreciation Cover basically gives an assurance that in any case of an accident the claimant receives full claim on the spare parts that will be replaced or are bought new for the repair of the car without any depreciation on their value. The Comprehensive Insurance or the standard insurance covers just about 50% of rubber/plastic parts and 10-50% on metal/glass parts.


Zero Dep covers are usually covered easily for new cars up to 3 years. One downside for Zero Depreciation Cover is that it costs higher than a comprehensive insurance. Zero Depreciation has been successful in India so far since it was allowed by the IRDA in 2007.


Some insurance companies have restrictions on the number of claims a customer can claim in a policy period. Some keep it to two (2) claims a year and some provide three (3) in a year.


Although, there are a few things that are not covered by Zero Depreciation Cover, like information that no agent might tell you without asking. CarSizzler has penned down a few of them below for you to always keep these in mind when renewing your insurance policy or upgrading to a Zero Depreciation.


  1. Damage due to breakdown mechanically.
  2. Accessories damage incase they’re not insured.
  3. Wear and Tear.
  4. No claim for an accident caused due to drunken driving.
  5. The moment you enter a racetrack, your zero depreciation cover does not cover you, neither will your standard cover.


Comments (1)
  • Karan Batra

    Thanks for this resourceful article I was comparing the difference in premium of Standard Insurance and Zero Dep Insurance and there was a significant difference in the premium. Is it worth paying the extra premium for Zero Dep Insurance. I reside in Delhi and it would be a single person driven car. Please advise.

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