Zero depreciation car insurance is an add-on cover that can be purchased with a comprehensive car insurance policy or a stand-alone own damage policy. This add-on cover ensures that the insurance company does not consider the depreciation cost of damaged parts during claim settlement. In other words, with a zero depreciation cover, you will receive the total cost of car parts during claim settlement. Typically, during claim settlement, an insurer deducts the depreciation value of parts before replacing the damaged parts. However, with this add-on, there’s no such deduction, and you receive the 100% claim.

This add-on cover is beneficial for those who own a car that is less than 5 years old. It helps in reducing car insurance premiums significantly. The expenses pertaining to voluntary deductibles and depreciation of car parts are paid by the insured at the time of claim. But with this add-on, you are entitled to claim the full amount of the sum assured. Depreciation on car parts will not be deducted. Moreover, this cover applies to vehicles that are less than 5 years old and the policyholder can avail of it twice during the policy tenure.

In summary, zero depreciation car insurance is an add-on cover that can be purchased with a comprehensive car insurance policy or a stand-alone own damage policy. It ensures that the insurance company does not consider the depreciation cost of damaged parts during claim settlement, and you will receive the total cost of car parts during claim settlement. This add-on cover is beneficial for those who own a car that is less than 5 years old and helps in reducing car insurance premiums significantly.