Secure Your Car With Zero Depreciation Car Insurance!

Believe it or Not! Save upto* 75% on TATA AIG Car Insurance

Secure Your Car With Zero Depreciation Car Insurance!

Believe it or Not! Save upto* 75% on TATA AIG Car Insurance

Insure your  Brand New Car

How Can Zero Depreciation Cover Be Beneficial During Claims?

  • Author :
  • TATA AIG Team
  • Published on :
  • 23/04/2021

Your car is your dream. You have put in all your hard-earned savings to buy your car, and you want to do everything in your power to keep it safe. The most beneficial step you can take to protect your car is to buy car insurance online. However, simple car insurance is not adequate to protect your car in all situations. Standard insurance for a car only offers limited coverage and does not include the general wear and tear of the vehicle.

Here is everything you need to know about the Zero Depreciation Cover:

But with a separate Zero Depreciation Cover, you can be assured that your car is safe from bumper to bumper. In a Zero Depreciation Cover, you will be fully compensated for the damage sustained by your car. So, even if your general car insurance offers limited coverage due to depreciation of your car, your Zero Depreciation Car Insurance Cover will offer full protection.

What is Zero Depreciation Motor Car Insurance?

A Zero Depreciation Cover is also known as bumper-to-bumper or NIL depreciation insurance cover. This type of insurance cover offers you complete, end-to-end protection for your car by excluding depreciation. So, in case your car meets with an accident, then the motor car insurance policy will pay for the entire expense involved in the replacement or repair of your car without deducting any depreciation.

Unlike standard car insurance, a Zero Depreciation Cover will cover car parts like rubber, fibre, metal body parts at their original value without depreciation. However, this insurance does not provide for the engine damage (because of oil leakage or water ingression), mechanical breakdown, oil change, consumables, car batteries and tires. You can buy this cover at the time of policy purchase or renewal to complement your car insurance plan and improve its coverage.

Depreciation in Car Insurance

The insurance companies use the below 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 wooden parts of the car.

Benefits of Zero Depreciation Cover during claims

A Zero Depreciation Cover is highly beneficial because of the following reasons:

Saves money: In a standard insurance plan, the depreciation of the parts of the car has to be borne by you. The insurance company pays your claim after subtracting depreciation. However, with a Zero Depreciation Cover, you save that money because you get end-to-end protection. This means you do not have to shell out any money from your pocket.

A higher claim amount: When you buy a Zero Depreciation Cover, the insurance company excludes the depreciation on the car and gives you a full claim amount. This means that you get a higher sum on your claim as compared to standard motor car insurance. 

Peace of mind: Having a Zero Depreciation Cover gives you the peace of mind that the insurance company will have your back in case of an unfortunate happening like an accident or damage. You get complete coverage for your damages and do not have to pay anything from your pocket. 

Who should opt for Zero Depreciation Cover?

This cover is ideal for:

  • Luxury car owners or people with car models that have expensive or rarely available spare parts.
  • People who live in accident-prone areas.
  • Inexperienced drivers or someone who has invested in a new car.
  • People who constantly worry about dents and bumps on their car and wish to keep it in pristine condition.

Zero Depreciation Cover with TATA AIG car insurance

Trust TATA AIG car insurance to provide you with enhanced coverage for your car. With the Zero Depreciation Cover, you can be assured that all your damages will be paid, and you would be financially relieved even in the most stressful times. You can buy car insurance online or renew car insurance and get the Zero Depreciation add-on easily.

A Zero Depreciation Cover from a trusted insurance company like TATA AIG car insurance is a sound investment for your car. Get your car insurance premiums and make an informed decision.


What is the benefit of zero depreciation car insurance?

Zero depreciation insurance pays the full claim amount without depreciation for your car.

Why does zero depreciation insurance make sense?

The Zero Depreciation Cover makes sense because, in the case of car damage, your insurer pays entirely without deducting depreciation. You do not have to pay anything.

Should I buy zero depreciation motor car insurance?

You should buy this cover if you own a luxury car, a new car with expensive spare parts, or you live in an accident-prone area or are a fairly new driver.

How many times can zero depreciation insurance be claimed?

This varies from company to company. Generally, you can claim twice during the policy year.

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Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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