How Can Zero Depreciation Cover Be Beneficial During Claims?

Ideal for New or Premium Cars

This is considered one of the most important benefits of zero dep car insurance. If your car is new or comes with expensive features, this add-on makes a big difference. New cars lose value quickly, and even small damage can be costly. Zero depreciation helps protect your investment by covering the actual cost of parts without cutting corners.

Full Claim Settlement

With zero depreciation cover, you do not have to pay out of pocket for damaged parts. Unlike a regular policy that deducts for wear and tear, this cover ensures you receive the full repair or replacement cost for a bumper, headlight, or mirror.

**Cost-Effective **

While the car insurance premium may be slightly higher, it usually pays for itself when you make a claim. You save on repair bills, which makes this add-on especially useful for city driving or frequent commuters.

Better Coverage

Standard policies often do not fully cover parts made of plastic, rubber, or fibre. With zero depreciation, these parts are included as well. This provides broader protection and fewer unpleasant surprises during claims.

No Depreciation Deductions

Unlike standard policies that reduce the claim amount based on the car’s age, this cover pays the full cost of damaged parts.

Protection Against Everyday Damage

Small dents, scratches, or minor accidents are common. Zero depreciation addresses these everyday issues so they do not become expensive repairs, keeping your costs under control.

Faster and Smoother Claims

Since depreciation is not calculated, claims are processed more quickly, helping you get your car fixed and back on the road without unnecessary delays.

Peace of Mind

Being one of the most important zero dep insurance benefits, knowing your insurer has your back makes driving stress-free. You can focus on the road, not on potential repair bills or financial setbacks.

Also Read: What Is Depreciation Reimbursement in Car Insurance?

Inclusions Under the Zero Depreciation Cover

• Man-Made Damage: Damage caused due to vandalism, riots, or other man-made disturbances is also covered. If it is broken glass or body damage caused by external interference, this add-on ensures you are not left paying out of pocket for something beyond your control.

• Damage from Natural Disasters: Natural disasters such as floods, heavy rains, storms, earthquakes, or hailstorms can cause severe damage to your vehicle. With the zero depreciation cover, the insurer covers the full repair or replacement cost of affected parts. This helps you recover faster without worrying about financial setbacks.

• Accidental Damage: If your car gets damaged due to an accident, this add-on ensures you do not lose money because of depreciation. Certain parts, like the bumpers, doors, mirrors, or headlights, are repaired or replaced at their full cost. You will not have to pay extra just because your car is not brand new anymore.

Exclusions Under the Zero Depreciation Cover

• Certain Parts May Be Excluded: Parts like tyres, tubes, batteries, and sometimes engine components are not covered under zero depreciation unless specifically mentioned in your policy terms.

• Total Loss or Constructive Total Loss: If your car is damaged beyond repair or the repair cost exceeds a certain percentage of its value, the claim is settled based on the Insured Declared Value (IDV). In such cases, zero depreciation benefits do not apply.

• Older Vehicles: Zero depreciation cover is usually available only for cars up to five years old. As vehicles age, wear and tear increase, which is why insurers limit this benefit to relatively newer cars.

The insurance companies use the following calculation criterion, as defined by the IRDAI (Insurance Regulatory and Development Authority of India), to calculate the rate of depreciation.

• 50% depreciation on rubber, nylon, plastic parts and batteries

• 30% depreciation on fibreglass components

• 5% depreciation in the first year and 10% depreciation in the second year on the wooden parts of the car.

Depreciation is the reduction in a car’s value over time due to wear and tear. In standard car insurance, this depreciation is deducted from the claim amount, meaning you pay a portion of the repair costs out of pocket. This can significantly impact your financial burden, especially for high-end vehicles or expensive spare parts.

However, with zero depreciation car insurance, the insurer covers the full cost of repairs without considering depreciation. This ensures that you receive the maximum reimbursement, making it a preferred choice for many car owners.

Also Read: 5 Essential Car Insurance Add-Ons

Think of zero dep insurance benefits as a safety cushion for your car insurance. It protects you from losing money when parts of your car need repair or replacement due to wear and tear. Normally, insurers reduce the claim amount based on the age of the parts, but with zero depreciation, that deduction does not apply.

Here is how this zero depreciation cover works:

Perfect for Newer Cars

If your car is fairly new or has premium features, this add-on is especially useful. It helps preserve your car’s value and keeps repair costs predictable so that you can drive with confidence.

Extra Protection for Your Car

Zero depreciation provides an additional layer of protection on top of your comprehensive insurance. It guarantees that your own car’s damages are fully covered, while your third-party protection stays the same. Even if a part needs complete replacement, you will not be penalised for its age.

No Depreciation Deductions

In a regular policy, parts like bumpers, mirrors, or headlights lose value over time, and you end up paying a portion of the repair cost. With zero depreciation, the insurer covers the full cost of replacing these parts, so you do not have to dip into your pocket.

Luxury and Premium Car Owners

Luxury cars come with expensive parts and higher repair costs. Even minor damage can lead to large bills. Zero depreciation insurance ensures that costly components are fully covered, helping you avoid heavy out-of-pocket expenses.

New Car Owners

If you have recently bought a new car, zero depreciation cover can be a smart choice. New vehicles lose value quickly, especially in the first few years. The zero depreciation car insurance benefits include protecting the value by ensuring you do not lose money due to depreciation during repairs.

Risk-Averse Individuals

If you want complete peace of mind and do not want to worry about repair bills, even for small damages, zero depreciation cover is a great choice. It ensures maximum protection with minimal financial stress.

Residents of High-Risk Areas

If you live in accident-prone or congested areas, you are more likely to experience dents, scratches, or collisions. This add-on helps you stay financially protected even in such unpredictable conditions.

New or Frequent Drivers

If you are new to driving or use your car daily, the chances of minor accidents or wear and tear increase. Zero depreciation cover provides an added layer of financial safety, making it easier to manage unexpected repair costs.

Also Read: Zero Depreciation in Two-Wheeler Insurance Explained

Make and Model of the Car

The type of car you own also affects the cost. Luxury or high-end models generally have expensive spare parts, which increases the premium. On the other hand, regular or budget-friendly cars usually come with more affordable zero-depreciation add-ons.

Age of the Car

The age of your vehicle plays a major role in deciding eligibility and premium. Newer cars usually attract a higher premium, but they also benefit the most from zero depreciation. As the car gets older, the premium reduces, and in most cases, vehicles older than five years may not be eligible for this cover.

Driving Record

Your driving history plays an important role in determining the premium. A clean record with fewer claims or violations helps keep costs lower, while frequent accidents or traffic violations push premiums higher.

Geographic Location

Where you drive and park your car matters. If you live in an area with heavy traffic, higher accident rates, or frequent thefts, insurers may charge a higher premium due to increased risk.

Coverage Amount

A higher coverage limit offers better financial protection but usually comes with a higher premium. It is essential to choose the right balance between coverage and cost.

Deductible Amount

The deductible is the portion you agree to pay during a claim. Choosing a higher deductible can reduce your premium, but it also means higher out-of-pocket expenses during repairs.

Step 1: Go to the Car Insurance Page

Visit the TATA AIG website and click on Car Insurance to begin.

Step 2: Enter Your Car Details

Fill in basic details like your car’s registration number, make, model, and variant. This helps show plans that are best suited for your vehicle.

Step 3: Choose Your Plan

You will be shown different insurance options. Pick a comprehensive policy and add the zero depreciation cover for extra protection.

Step 4: Review and Share Your Details**

Take a moment to review the coverage and premium. Once you are happy, enter your personal details such as your name, phone number, and email ID.

Step 5: Make the Payment

You can complete the payment using a debit card, credit card, or any other available online option.

Step 6: Get Your Policy Instantly

After a successful payment, your policy documents will be sent straight to your email. The process is quick, easy, and paperless

Zero Depreciation cover adds an extra layer of confidence to your car insurance by ensuring you receive full claim value without deductions for wear and tear. The benefits of zero dep insurance are most beneficial for those who want long-term protection and predictable expenses. When paired with TATA AIG’s four-wheeler insurance, it delivers complete financial security.

When you are planning to buy car insurance for a new vehicle, TATA AIG makes the process seamless, transparent, and reliable. From cashless garage support, seamless car insurance renewal and quick claim settlements to 24*7 assistance, every feature keeps you stress-free whenever you drive on the road.

Having the right zero dep car insurance coverage protects your car, your finances, and your everyday mobility. You must choose TATA AIG for dependable protection that goes the extra mile, every time you drive.