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Buy or renew bumper-to-bumper (with zero depreciation cover) car insurance

It is not uncommon to see policyholders get a rude shock when they see the deductions made on insurance policy before reimbursing the repair bill amount. Not knowing about these deductions leads to poor choices in getting coverage for a car insurance. For repair bills reimbursement, depreciation is one major component which is deducted by an insurance company before the payout towards a claim. . It is important to note that this wouldn’t have been the case if the policyholder had opted for a zero depreciation add-on with his/her comprehensive insurance policy.

If you are interested to explore the concept of zero depreciation further, then you are at the right place. We look at everything there is to know about zero depreciation and how you can use it to your advantage for your car repairs and policy claims.

Zero Dep car insurance – What is bumper to bumper insurance?

A car insurance policy provides coverage as per the choices made by the policyholder. The base coverage is a comprehensive policy (which covers bodily injury and car repairs to own as well as to the other party). Then there are add-ons which improve the extent of coverage your four wheeler gets. Zero Depreciation is one such add-on that you can add to your policy coverage for a nominal amount. When you choose the add-on in your car insurance policy, the policy is called zero depreciation car insurance policy.

What Zero Dep car insurance does?

As an add-on, Zero Depreciation (also known as zero dep insurance, Nil-Dep insurance, or bumper to bumper insurance) provides coverage without deducting the depreciation value. As you know, an asset depreciates in value over time. Similar is the case with your car. Its value starts reducing the moment you take its delivery from the showroom.

The below are different components and its applicable depreciation rates as per IRDAI:

  • Depreciation against rubber, nylon, and plastic parts – 50% depreciation be deducted,
  • Depreciation against fiber glass components – 30% depreciation be deducted, and
  • Depreciation against wooden and metal parts – The rate is determined according to the car’s age (e.g. 5% in the first year, 10% in the second year, going up to 50% in 5th year)

With this add-on, you can be assured that the insurance company will not be deducting the applicable depreciation amount when processing your claims.

Benefits of zero depreciation car insurance

  1. Better claim settlement without considering depreciation
    With the zero depreciation add-on, you can be assured that you avail of better claim settlement. Rather than paying for the depreciated amount (for a policy not having zero depreciation add-on), you can expect the insurance company to bear this amount.
  2. Covers repairs of plastic and fiber parts
    You can expect 100% settlement of repair costs. While a standard policy doesn’t cover for plastic and fiber parts entirely, a zero depreciation add-on will consider this for claims payout.
  3. Better value for money
    The premium amount may increase nominally when you opt for this add-on. However, the returns will far outweigh the costs, especially after a major accident to a car.
  4. Better protection especially for new cars
    This type of comprehensive insurance with zero depreciation add-on cover covers costs of all the parts. The bumper to bumper protection offers total peace of mind, especially to new car owners.

Coverage Of zero depreciation insurance

The coverage of Zero Depreciation on Car Insurance are as follows:

CriteriaZero Depreciation Car Insurance Cover
PremiumAround 15% higher premium amount as compared to basic comprehensive policy
Claim Settlement AmountHigh claim settlement amount as the depreciation estimate is not calculated
Car Parts RepairOffers excellent cover for all the repairing costs
Claim AmountCovers entire loss/damage without decreasing the depreciation
Car AgeUp to 5 years
Own ExpenseLower burden on the insurer/policyholder during the claim time
Cost Of plastic parts and repairMaximum coverage

Exclusions under zero depreciation insurance

While add-ons cover almost every expense of your car damage, there are certain exclusions. To be more precise, these facilities are not available under the zero depreciation car cover. Make sure you check the policy to have a clear picture of the inclusions and exclusions in the plan. Below is a list of exclusions on zero dep car insurance.

  • Driving Without A License
    Individuals lacking a valid car driving license will not be eligible to avail the benefits of a zero depreciation add-on. This is because when individuals drive and meet with an accident, just in case, the insurance company cannot honour the claim.
  • Care Aged Over 5 Years
    The add-on does not cover cars that are over 5 years old. For further information, make sure you read the terms and conditions of the company. This is because the terms might vary depending on the company policies.
  • Does Not Cover Mandatory Deductibles
    While making claim settlements, the Zero Depreciation add-on does not cover any of your mandatory deductibles. It covers only the cost of the cart parts depreciation.
  • Does Not Cover Consumable Price
    Zero-Depreciation add-on does not take charge of compensating the costs of Engine oil, brake oil, clutch oil, gearbox oil, coolant, nuts, colts, lubricants, etc.
  • Does Not Cover Engine/ Mechanical Breakdowns
    Under a standard rule, the zero depreciation add-on does cover any mechanical breakdown or wear/tear of your car.
  • Total Loss of The Car
    In cases where the car suffers damage beyond repair or undergoes a total loss, the zero depreciation add-on will be considered null.
  • Replacement Of Particular Car Parts
    Unless and until the replacement of tubes and tyres are mentioned in the terms and conditions of the insurance policy, replacing parts does not come under the zero depreciation cover.

Zero Dep car insurance Policy – Factors to be aware of

Only knowing zero depreciation meaning is not enough. You should also be aware of the following facts which come with the policy

  • Premium is higher 
    The cost associated with having an enhanced coverage is nominally higher than plain vanilla comprehensive policies. By paying for the future costs, you can avail of peace of mind when the claim actually arises.
  • Usually only two claims allowed a year
    With this coverage, insurance companies usually limit the number of claims you can make in a year. This way, they ensure that policyholders don’t file a claim for every little dent or scratch, simply because they can get it done for free.
  • Works well for a new car
    The zero depreciation is applicable only to cars aged 1 to 5 years. In recent times some companies have started offering zero dep coverage for 7-year old cars as well.
  • Doesn’t work in standard wear and tear
    Routine wear and tear such as clutch plates, brakes, and bearings are excluded in zero depreciation insurance. It also excludes engine oil, coolant, or brake oil.

Impact of zero depreciation on car insurance

Selecting zero depreciation car insurance coverage generally creates an impact on 3 major components or car insurance. These include

  • Claim amount (individuals can claim more because depreciation will not be analyzed/considered in case you have opted for a zero depreciation cover)
  • Coverage (the total coverage of your car insurance plan will elevate)
  • Premium (it slightly increases because depreciation shield in terms of car insurance provides more and better coverage as compared to a basic comprehensive policy)

Below listed is the impact of zero depreciation insurance on cars for better understanding. Have a look.

Car AgeDepreciation Rate (Without Zero Depreciation Cover)Depreciation Rate (With Zero Depreciation Cover)
Under 6 monthsNil0%
6 month – 1 year5%0%
1 year – 2 years10%0%
2 years – 3 years15%0%
3 years – 4 years25%0%
4 years – 5 years35%0%
5 years – 10 years40%0%
Above 10 years50%0%
Parts Of CarDepreciation Rate (Without Zero-Dep Cover)Depreciation Rate (With Zero-Dep Cover)
Glass partsNil0%
Fiberglass parts30%0%
Plastic parts/Paintwork/tires, tubes/Rubber/batteries/nylon/airbags parts50%0%

What is the cost of a zero depreciation cover?

Ideally, the cost of buying a zero depreciation add-on cover will cost you an additional 15% over your existing car insurance premium approximately. Although the might be a steep price with regards to an add-on cover, the price is definitely worth it as the compensation amount will turn out to be considerably much higher than the premium.

Moreover, this cost is worth it because the amount you save while making claims will be quite higher than the original cost of the zero depreciation add-on.

Who should buy zero dep car insurance?

Zero depreciation is usually 15-20% of the premium amount and is an ideal add-on for certain scenarios. Take a look at some cases where zero depreciation makes total sense to opt for with your insurance policy:

  • High end and luxury car spare parts that are expensive to repair and come with spare parts that are costly to replace or fix
  • New car owners (less than 5 years old)
  • Cars that run on roads with high car density and high likelihood of accidents. Here zero depreciation insurance coverage will assure peace of mind when driving on such roads.
  • For cars with expensive spare parts. Zero depreciation will protect you from bearing the costs of such spares from your own pockets
  • It is ideal for drivers who are improving their driving skills and are more prone to accidents

Things to keep in mind about the zero dep car insurance add-on cover

Few things to consider/keep in mind while buying the zero-depreciation car insurance are:

  • The zero depreciation add-on cover is applicable for cars aged under 5 years old
  • The cover does not compensate the mandatory deductibles of the insurance policy
  • During claims, the add-on cover the cost of car part depreciation only
  • There are restricted number of zero depreciation claims in a year

How to renew zero depreciation car insurance online?

Ideally, the Zero Depreciation car insurance renewal is quite easy and hassle-free when done online. Let’s have a look at the steps.

  • Record A Track Of The Renewal Date
    Generally, the insurer or the policy donor send a renewal reminder over a call or mail. However, it is great if policyholders keep a thorough track of these records so that the renewal process takes place effortlessly before the due date.
  • Enter The Essential Policy Details
    While renewing the insurance policy, individuals don’t need to run to and fro for paperwork, submissions, etc. These can take place online at the comfort of your fingertips by clicking on the policy renewal option from the website.
  • Follow The Instructions
    Moving ahead, make sure you submit all the necessary documents, fill the form with mandatory details, and tap the payment option.
  • Make The Payment Online
    Use your debit card or credit card as all the transactions will take place online.
  • Renewal
    The insurer will notify you with a zero-depreciation cover car insurance renewal on your phone number or the registered email ID.

Also Read: Check Vehicle Insurance Status Online

Claim settlement with zero-depreciation car insurance policy

Ideally, the claim settlement with a zero depreciation car insurance add-on policy

is quite smooth. When claims are made under this cover, policyholders receive 100% settlement on the total cost of repairing the car. The claim gets settled effortlessly without the need to consider the depreciation factor that takes place because of casual wear and tear.

The add-on zero depreciation cover is highly useful and reasonable for car owners who wish their car claim settlement to be efficient, peaceful, and hassle-free even in cases where the car has suffered damage or considerable loss.

How is zero dep car insurance amount determined?

Zero depreciation is based on a few crucial factors such as:

  • Age of the car
  • IDV of the car
  • Car model and variant
  • Location where you are based

Difference between comprehensive insurance with zero depreciation & without zero depreciation

You may want a compelling reason to pay additional upfront for future costs. So, here is the key difference between comprehensive and zero depreciation insurance which shows zero depreciation meaning and why it is important:

PointersInsurance with zero depreciationInsurance without zero depreciation
Coverage during claimsBetter coverage as depreciation amount is not deducted before payout of claimLower coverage as depreciation is factored for metal, fiberglass, and plastic parts before payout of claim
Who it is good for?Ideal for those who don’t want to pay for claims from their pockets and bumper to bumper coverageIdeal for those who don’t want to pay higher premium and are ok with higher repair bills to be borne from own pocket
Number of claims allowedUsually only two claims are allowed to prevent misuseMore than one claim is allowed by many insurance companies

The below table is a great way to show the savings incurred even after paying extra to opt for zero depreciation:

First, we have a look at the depreciation calculated on a Rs. 7-lakh car

1. Depreciation table

Repair bill breakupRepair Amount (Rs.)Rate of depreciationAmount of depreciation (Rs.)
Metal Spares8,0005%400
Fiber Spares1,50030%450
Plastic Spares12,00050%6,000

2. Comparison table

Cost of claim amountWith Zero Dep Add-onWithout Zero Dep Add-on
Basic premium (A)12,00012,000
Premium on zero depreciation cover (18% of premium for illustration purposes)(B)2,160
Policy amount = A+B (C )14,16012,000
Cost of repair as per first table (D)21,50021,500
Depreciation amount paid by policyholder (E )6,850
TOTAL costs borne by policyholder = C+E (F)14,16018,850

It is clear that even with an additional cost of Rs. 2,160, the policyholder ends up saving Rs. 4,690 on the claim made.

How to get Zero Depreciation Car Insurance with Turtlemint?

Buying a zero depreciation car insurance with Turtlemint is very simple. All you need to do is fill up information about your car and select Zero Depreciation as an add-on. You will be presented with quotes from different providers. You can pick one that is the best and lock it for your four-wheeler.

In just 3 steps, you can buy car insurance online by visiting our secure website

  • Enter details about car, city, name information to see basic quotes from different providers
  • Select comprehensive insurance and Zero Depreciation as add-on
  • Check revised premium and make payment to lock zero depreciation policy to your car

Why Choose Turtlemint for Zero Depreciation Car Insurance

When you set out to buy a Zero Depreciation Car Insurance, you will need to factor in quite a few things. You will need to check the different quotes and also be able to add the right add-on to provide solid protection for your four-wheeler. This will ensure that you get a winning deal in online insurance quotes.

At Turtlemint, we will help you simplify the entire process of buying a Zero Depreciation Car Insurance online. Some reasons why you can look forward to purchasing a zero depreciation policy from us include

1 – Total Support

At any point in time during the process of viewing quotes or while buying a policy, there may be many issues that can come up. If you don’t get a timely response, you may drop the idea of buying online insurance totally. This is why we at Turtlemint are there for you. Our team of experts is just one phone call away. You can connect with us on phone or on chat and get your issues clarified.

2 – Expert services

With Turtlemint, you can clarify any and every doubt about Zero Depreciation Car Insurance. The simple explanations and unbiased suggestions are just what you need to make a smart buy online

3 – Claims support

It may be possible that you may need a considerate guide to help you go through the maze of correct claims procedure. You can count on us for total support to get your claims filed, processed and paid out successfully.

4 – Best quotes

It is not possible in today’s busy times to go to every insurance provider’s office and take out quotes and then compare them. With the online comparison facility at Turtlemint, you are presented with best quotes on Zero Depreciation Car Insurance. You can get quotes at any time, from any place where you are surfing the Internet. This lets you compare the different quotes and pick one as per your preference.



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