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Zero Depreciation Car Insurance

 

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Understand your vehicle registration number

Your vehicle registration number is the unique vehicle identification number issued by Regional Transport Office (RTO) and mentioned in your vehicle RC book. The vehicle registration number is printed on license plate and affixed to your vehicle.

Kindly note: While entering your vehicle registration number, please be careful about similar looking characters and number, like alphabet ‘O’ being used in place of number 0 or vice-versa.

  • 1 The first two letters together indicates the state in India where the vehicle is registered.
  • 2 The second group comprises two numbers, which represents RTO district code.
  • 3 The last group is usually a unique combination of a character(s) and four digits. If it’s 0001, please enter all the four digits and not just 1.

What is Zero Depreciation Car Insurance Cover?

You file a car insurance claim, the workshop gives you a repair estimate, and you assume the policy will cover most of it. Then the settlement comes in, and the payout is lower. But what happened? Depreciation. Every car part loses value over time, and when your insurer calculates the claim, that lost value gets deducted from what they pay you. The older the part, the bigger the deduction.

Zero dep insurance is an add-on that helps close that gap. When covered parts need to be repaired or replaced after an accident or another covered event, depreciation deductions on those parts are reduced or removed, as per the policy terms.

Two Wheeler Insurance - Security Round The Clock

What are the Benefits of Zero Depreciation Cover in Car Insurance?

Here is what zero depreciation car insurance actually changes when a claim is made:

You End Up Paying Less from Your Own Pocket

Under a standard policy, depreciation on replaced parts is deducted from the claim. With this add-on, that deduction is reduced significantly. The difference between what the insurer pays and what the workshop charges becomes much smaller.

The Settlement Actually Reflects the Repair Cost

A standard policy approves the claim, but the final payment can still feel short. Zero dep insurance keeps the settlement closer to what repairs actually cost, so the cover feels like it is doing its job.

It Makes More Sense for Newer Cars

The newer your car, the more its parts are worth, and the more depreciation stings when those parts need replacing. If your car is relatively new, zero depreciation cover can make a meaningful difference to what you receive at claim time.

No Unpleasant Surprises When You Claim

Finding out that depreciation has quietly reduced your payout is one of the more frustrating parts of an insurance claim. This add-on makes it less likely to catch you off guard.

More Useful When Damage Goes Beyond the Surface

Minor scratches are manageable. But when parts need replacing after serious damage, costs can rise quickly. That is when zero depreciation car insurance earns its place in your policy.

Should You Opt for Zero Depreciation Insurance?

You drive home happy after buying a new car. Then one day, a scratch, a dent, or something worse happens. You file a claim expecting the full repair cost to be covered. The payout arrives, and it is lower than the garage bill.

That is depreciation at work.

Your insurer deducts the depreciated value of every replaced part before settling the claim. The older the part, the less you get back. The remaining amount? That comes out of your pocket. On a newer car, that gap adds up faster.

Zero depreciation insurance makes the most sense if you drive a new car, a premium vehicle, or deal with bumper-to-bumper city traffic every day. It comes down to one simple question: how much of that gap are you comfortable covering yourself?

When Does a Zero Depreciation Add-On in Car Insurance Come Into Play?

The way the zero depreciation add-on works is simple. If your car is damaged in an accident, flood, earthquake, riot, vandalism, or even during transit, your insurer pays the full repair or replacement cost, subject to policy terms and conditions. No deductions for depreciation.

That said, the add-on does not cover everything, like:

  • Regular wear and tear

  • Engine failure from oil leakage or water ingress

  • Consumables

  • Situations where the driver was unlicensed or under the influence of drugs or alcohol

Also, most policies allow up to two zero dep insurance claims in a policy year. Once this limit is reached, any further claims are still processed, but without this add-on benefit.

How to Buy Two-Wheeler Insurance Online

How to Get Zero Dep
Car Insurance Online?

Buying zero dep car insurance online takes only a few minutes:

1

Enter your vehicle registration number to generate a quote

2

Select a comprehensive policy

3

Choose zero depreciation cover from the add-ons section

4

Proceed to payment

5

Your policy is issued instantly and sent to your registered email

Zero Depreciation Cover vs Comprehensive Car Insurance

Basis Comprehensive Car Insurance Zero Depreciation Cover (Add-on)
What it covers Covers accidents, theft, third-party liability, and natural/man-made calamities Offers zero depreciation on replaced parts
Depreciation deduction Depreciation is deducted on parts at the time of claim No depreciation deduction on covered parts
Claim payout Lower payout due to depreciation costs borne by you Higher payout as depreciation cost is not deducted
Parts coverage impact Plastic, rubber, and fibreglass parts attract up to 50% and 30% depreciation These parts are covered without depreciation cuts
Premium Lower premium Slightly higher premium due to added benefit
Out-of-pocket expense Higher, as you pay for depreciation Lower, as insurer covers full cost (as per terms)
Best suited for Older vehicles or budget-focused buyers New or high-value cars where repair costs can be significant

A comprehensive car insurance policy gives you wide protection, but a zero depreciation add-on ensures you do not lose money on part replacements during claims.

What is Depreciation?

Depreciation is the drop in value insurers apply to individual parts when settling a repair or replacement bill. Older parts are paid out at a lower rate than new ones. Zero dep insurance removes this deduction, so a part's age no longer affects what you receive at claim time.

How is Depreciation Calculated in Car Insurance?

Depreciation is calculated component-wise:

  • Rubber, plastic, nylon parts, tyres, tubes, batteries, airbags: 50%
  • Fibreglass parts: 30%
  • Glass: Nil

Vehicle-level depreciation increases with age. For example:

  • 4 to 5 years: 35%
  • 5 to 10 years: 40%

These rates reduce your claim payout in a standard policy. With zero depreciation in car insurance, these deductions are removed.

Note: Tyres, tubes, and batteries may still have partial depreciation depending on the insurer.

What is the Role of a Zero Depreciation Cover During Claim Settlement?

Let’s break it down with a simple example.

Consider a bumper repair costing INR. 5,000.

  • Without zero depreciation cover:
  • With zero depreciation cover:

  • Repair cost: INR 5,000

  • Deductible: INR 1,000

  • Depreciation applied (50%)

  • Insurer pays: INR 1,500

  • You pay: INR 3,500

  • Repair cost: INR 5,000

  • Deductible: INR 1,000

  • No depreciation deduction

  • Insurer pays: INR 4,000

  • You pay: INR 1,000

The difference is clear. This is where a zero dep insurance claim delivers value.

How to Renew Zero Depreciation Insurance Online?

To renew zero dep insurance online:

  • 1
    Visit the car insurance renewal page
  • 2
    Enter your vehicle registration number or mobile number
  • 3
    Confirm zero depreciation cover is included in your renewal
  • 4
    Complete your zero depreciation insurance renewal through the secure payment gateway

Aim to renew some days before the expiry date. If your policy lapses, a vehicle inspection may be needed before it can be reinstated.

Things to Remember

Things to Remember About Zero Depreciation in Car Insurance

Zero dep is only available for cars up to five years old. After that, the option is no longer available. A few more conditions worth knowing:

  • Generally, a maximum of two zero dep claims is permitted per policy year. Further damage is settled under standard depreciation terms

  • The compulsory deductible applies to every claim, regardless of whether zero dep is active

  • Engine damage from water ingress or oil leakage, consumables, and mechanical failures are not covered. A separate engine protection add-on handles those.

Read your policy document carefully to understand the zero dep cover conditions.

What Factors Influence Your Zero Depreciation Car Insurance Premium?

  • Your car's age carries the most weight. Older, eligible cars are a higher claim risk, and that shows up in the zero-dep insurance price you pay.

  • Make and model come next. Luxury vehicles have parts that cost significantly more to replace, which pushes zero depreciation car insurance pricing further.

  • Your registered city also plays a role. Metro cities like Mumbai, Delhi, and Bengaluru see more accidents in dense traffic, and insurers price that in.

  • Claims history at renewal can shift the final figure, too.

Car Depreciation Rates Approved by IRDAI

The following IRDAI depreciation rates apply during claim settlement:

Age of Car Without Zero Dep Cover With Zero Dep Cover
Under 6 months Nil 0%
6 months to 1 year 5% 0%
1 to 2 years 10% 0%
2 to 3 years 15% 0%
3 to 4 years 25% 0%
4 to 5 years 35% 0%
5 to 10 years 40% 0%
Above 10 years 50% 0%
Part Type Without Zero Dep Cover With Zero Dep Cover
Rubber, plastic, nylon, tyres, tubes, batteries, airbags 50% 0%
Fiberglass 30% 0%
Glass 0% 0%

How is Zero Depreciation Car Insurance Premium Calculated?

  • Your car's IDV, make, model, fuel type, and registration city form the base of the calculation. The zero dep insurance premium is then added on top as an extra charge over the base own-damage premium.
  • Cars with costly parts or higher accident exposure attract proportionally higher zero depreciation car insurance pricing.
  • A clean claims record at renewal generally works in your favour.
Documents Required for Filing a Bike Insurance Claim

Key Features of the Zero Depreciation Add-On for Car Insurance

The zero depreciation car insurance add-on covers rubber, plastic, nylon, fibreglass, metal, and glass parts at full replacement cost, with no depreciation applied.

Key zero dep insurance features include:

  • Six-month repair quality assurance at authorised network garages
  • Instant policy issuance
  • Direct garage settlement by the insurer

The add-on must be purchased alongside a comprehensive or standalone own-damage policy and applies only to cars up to five years old.

Claim Settlement with Zero Depreciation Car Insurance

When damage occurs, inform your insurer as soon as possible to raise a zero dep claim. A surveyor visits to assess the damage, and the car is sent to an authorised network garage for repairs.

Documents you will need:

1

Policy document

2

Registration certificate

3

Driving licence

4

Signed claim form

5

Repair estimates

Once repairs are done, the insurer pays the garage directly. You only pay the compulsory deductible. That is how zero depreciation claim settlement works, exactly as it should.

Steps To Renew Bike Insurance Online

Advantages of Buying Nil Depreciation Add-On Cover with
ICICI Lombard

A new car comes with high parts costs. And when something goes wrong, a standard policy quietly deducts depreciation before settling your claim. That gap between the actual repair bill and what you receive is exactly what the nil depreciation add-on cover with ICICI Lombard eliminates.

Here is what you get when you add it to your policy:

  • Your claim payout reflects what repairs actually cost, with no depreciation deducted

  • ICICI Lombard settles directly with the network garage, so there is no upfront payment from you

  • Six-month repair quality assurance at authorised network garages gives you peace of mind after every repair

  • Issuance and renewal are fully online, making the entire process straightforward and easy

  • The cover delivers the most value in the early years of ownership, when parts costs are high, and the depreciation gap is at its widest

Why Choose ICICI Lombard Bike Insurance?

The earlier you add it, the more you save when it matters.

Reviews and ratings
for zero depreciation in car insurance

  • 4.2 star rating

  • Our customers have rated us

    Based on 132 reviews

Andleeb Mandai

I just purchased this car insurance policy because of the following reason even after getting cheaper offer from other competitors: 1. Proper follow up and prompt update 2. The way your team explained the feature of policy such as 24x7 road side assistance, zero depreciation, and high number of cashless garages etc. 3. Excellent customer service

Puneet Gupta

Your team was very helpful in telling the details of the premium breakup and the IRDA specific mandates. Unlike others, they informed me about the terms and conditions of zero depreciation coverage in the car insurance policy. Thanks for advising and helping with information.

Arvind Chauhan

Nice support and assistance given by your support team for renewal of my car insurance policy. Because of service and benefits offered by ICICI Lombard, I migrated from existing insurance firm to ICICI Lombard.

Asif Khan Chowdhury

Very helpful team of ICICI Lombard, they explained each and everything about the policy with patience which made me to buy car insurance right now. Thanks.

Shahnawaz Mateen

Thank you for the excellent service and clarification provided in even the minute details. Helped me a lot and I got a clear insight of the ICICI Lombard car insurance services. Thank you again. Keep up the good work.

Nilesh Date

I renewed my car insurance policy online, it was a very good experience I got a very nice guidance by your team. I would like to give 5 stars rating for the service.

Mithun Chakraborty

Your sales representative has been fantastic on his customer service skills. He has been very informative, and ensured that, I as a customer is completely comfortable before making the move to buy car insurance policy. Wish him good luck and graceful career ahead.

Sivakumar Kr

I am extremely satisfied with the way your Customer Support Executive addressed my need over phone and helped me renew my car insurance policy which was expiring today. His excellent service encouraged me to take this policy from ICICI Lombard instead of going to some other service provider. Keep up the good work.

Manoj Kumar

I was serviced by your team, they explained all the silent features of the car insurance policy and helped me to renew my car policy from ICICI Lombard.

Karthikeyan P

I am very much impressed with the customer care representative of ICICI Lombard, who helped me in the process of renewing my car insurance policy over the phone. She explained each and every information of a policy. Thank you.

Lyton Roy

I am really delighted by the support, guidance and behavior of ICICI Lombard representative. The way she has guided me it’s really outstanding. "A Brand cannot be created by advertisement, it can be created only by good Customer Experience" A real caring human touch for the customer. She is an asset for any Organization. All the Best, Thank You

Sarguna Raja Marimuthu

To whomsoever it may concern, would like to acknowledge the excellent support provided by ICICI Lombard team in purchasing a new car insurance policy. They explained me inclusion & exclusion of a policy. Great job. Please keep it up.

Neeraj Kumar

I spoke with one of your representative, she was brilliant in order to make me understand all the benefits of the car insurance and very calmly shared the exclusions. Amazing customer service given by her. I wish her all the best for all her future endeavors.

Vijay Choudhary

It was a pleasure interacting with your team to buy an insurance policy for my car. They had a great understanding of the product and its features. An absolute customer delight.

Senthilnathan C

Great follow up and persistence from ICICI Lombard team. They had clearly elaborated on the options and the plan available in car insurance. They had been following up for the last 20 days with patience. Kudos!!

Prashant Deshmukh

Hi! I received an excellent support from your sales executive to get my old Car Insurance renewed with ICICI Lombard. He explained all the intrinsic details about the policy that I was looking for. His explanation and inputs helped me to make a decision of buying this policy. I appreciate his customer centric approach and his patience.

Rajeev Palanki

I’d like to take a moment to express my appreciation for your team member, who was extremely helpful when I called the customer care to renew my Car Insurance policy 3001/76974158/03/000. It was good to start the year with a positive customer experience. Thanks

Satish Chandra

Thanks to your salesperson, my experience of purchasing car insurance from ICICI Lombard was remarkably smooth. She explained to me the advantages of the policy, such as personal accident coverage of Rs. 2 lakh, in a clear and simple language. I’m really grateful for her assistance.

Arindam Sau

ICICI Lombard’s agent gave me complete information about the policy benefits, including roadside assistance and coverage against third-party legal liabilities. Moreover, she satisfactorily answered my queries, and made the policy buying experience seamless and easy for me. Thanks for being so supportive.

P.K. Dhar

I got a prompt and excellent service from ICICI Lombard while purchasing a car insurance plan. Your agent gave me a comprehensive explanation about the benefits of the policy, including roadside assistance for accommodation and minor car repairs. Thanks for the fantastic experience!

Vikram Singh Kaintura

I had a nice conversation with your customer care executive. He explained clearly the ins and outs of your car insurance plan including benefits such as inbuilt personal accident coverage. The polite way in which he answered each and every of my questions convinced me to purchase the policy.

Jigar Katoriya

My experience with ICICI Lombard’s customer care department has been very good. The executive that I spoke to was professional and courteous. Though the system faced some issues with the login and vehicle description, all in all, the process of policy purchase was very easy for me.

Sridhar K.

I’m delighted with ICICI Lombard’s customer service. The customer care person was very meticulous with his follow-ups, and ensured that the process of buying the car insurance policy was quick and easy for me. Good work! Keep it up.

Rahul Thathoo

The agent handled our interaction in a smooth and professional manner. She was able to resolve the technical glitch I’d been facing while buying ICICI Lombard’s car insurance policy online. I really appreciate her patience, and wish her great success for the future.

Arun Saxena

I received excellent support from your customer service associate while purchasing my car insurance policy. She made regular follow-ups, resolved all my queries, and really managed to convince me to become a policyholder with ICICI Lombard. God bless her!

Hemant Srivastava

Just bought a car insurance policy from ICICI Lombard. Your agent helped me to understand the benefits of the policy, such as coverage against third-party liabilities as well as roadside assistance for minor repairs and accommodation. She deserves a good rating for providing me with much-needed guidance.

Eshwar Pavan Manthena

The salesperson was of great help to me while I was buying car insurance from ICICI Lombard. He showed genuine interest in answering all my queries, and helped me to complete the purchase. Appreciate his patience. Keep it up!

Bala Showry Raju Pudota

I renewed my car insurance with ICICI Lombard today. I’m happy with the comprehensive explanation of the policy provisions that was provided by your customer service associate. He even helped me to buy an accident insurance plan. Appreciate the support.

Jayamurugan Natarajan

I would like to thank your customer sales representative for helping me choose the right policy for my car. She shared with me all the information I’d requested for with regard to your insurance plan. Kudos to her for the excellent support!

Nitin Baban Pabal

My conversation with your insurance advisor regarding the purchase of my car insurance plan turned out to be quite nice. He simplified the ins and outs of the policy, principally the advantages such as personal accident cover of Rs. 2 lakh. Thanks for the lucid explanation!

Narasimha Rao Gopisetty

I’d been looking up car insurance quotes online when your executive gave me a call. She sold me the idea of renewing my insurance with ICICI Lombard by highlighting the policy benefits like personal accident cover of Rs. 2 lakh, and coverage against third-party legal liabilities.

Praveen Redddy

Had a smooth, hassle-free experience while buying car insurance from ICICI Lombard. The customer service representative gave an excellent description of the policy advantages such as cashless services across an expansive network of garages. I am glad to have made the decision to buy the plan.

Radhakrishnan A.R.

Your executive spoke with me for nearly an hour in order to help me buy the right policy for my car. His precise answers to all my insurance queries has left me impressed. His dedication and devotion to his work is clearly evident. I wish him a successful career with ICICI Lombard.

Saurabh Prasad

ICICI Lombard’s executive was very diligent with his follow-ups. He responded to my queries in a courteous manner, and guided me through the purchase of my car insurance. I would love to interact with him again in the future for any insurance needs. Thanks for being so helpful!

Adarsh Kumar Singh

Received timely assistance from your customer service department when I was looking for guidance with regard to buying car insurance. The agent had good communication skills, and explained all the important details about the policy such as the inclusions and exclusions of coverage.

Suhel Singh

Your customer service associate came to my aid when I was looking to switch my car insurer. He helped me in the best possible way to renew my policy with ICICI Lombard. Really appreciate the guidance I was provided with during the purchase.

Palanisamy Aspa

I’d been on the hunt for a new car insurance company, and so decided to get in touch with your team. Your executive answered my queries regarding the renewal process. Her good technical knowledge of the policy prompted me to renew my car insurance with ICICI Lombard.

Raja Rajeshwaran

A big thumbs up to ICICI Lombard’s customer service! The insurance advisor I spoke with was very patient, and convinced me to buy the car insurance policy. Hope to receive a high standard of service from your other advisors too. Thanks.

Kapil Kumar

Thanks to your salesperson, I was able to buy car insurance from ICICI Lombard without any complications. She was polite and respectful, and gave some valuable assistance to help me out with the purchase. I’m fully satisfied with the service provided.

Varagunan Sambandam

Your agent spoke clearly and gave me a succinct outline of your car insurance plan. He simplified the policy buying process for me by walking me through each and every step. Looking forward to a good experience from ICICI Lombard in the future too.

Varad Sawant

I’ve renewed several of my insurance policies in the past, but my experience while renewing car insurance with ICICI Lombard was the best. Your agent explained clearly and understandably all policy-related details. I’ve decided to renew all my other insurance plans with you in the future.

Rajnesh Dagar

Just bought a car insurance plan online from ICICI Lombard. The salesperson explained to me the policy provisions in a clear manner, especially the benefits such as coverage on replaced parts of the car. He helped me to choose a suitable plan for my insurance needs. I would like to thank him for his support.

Abhineet Mittra

Thanks to your customer support associate, I was able to get the best insured declared value (IDV) and maximum number of add-ons, including a free Carnot device which keeps track of my car’s health. He also explained the features of your car insurance plan in detail and later, helped me to complete the payment online.

Vishnu Sarkar

Your salesperson walked me through the terms and conditions of your car insurance plan. She spelled out clearly the policy features like coverage against loss or damage to the car by natural and manmade calamities, and other facilities offered by ICICI Lombard. I would like to wish her all the best for the future.

Read all reviews

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Frequently Asked Questions

Should I buy zero depreciation car insurance?

If you want to avoid paying extra from your pocket during a claim, this add-on is worth considering. It is especially useful for newer cars, where part replacement costs can be high. If keeping your repair bills predictable matters to you, this can make a real difference.

What is the premium for zero depreciation car insurance?

The zero dep premium varies by your car's age, make, model, and registered city, and sits on top of your base own-damage premium.

Is bumper-to-bumper and zero dep insurance the same?

Yes. Bumper-to-bumper, nil depreciation, and zero depreciation are all different names for the same add-on cover.

Do I get No Claim Bonus in a zero-dep car insurance policy? The No Claim Bonus (NCB) builds

The No Claim Bonus (NCB) builds up for every claim-free year and comes off your insurance premium at renewal.

What is the Insured Declared Value (IDV) in a nil depreciation car insurance policy?

The IDV is what your insurer pays out if your car is stolen or totalled. Zero depreciation cover has no effect on that figure.

Which factors affect the zero depreciation car insurance premium?

Your car's age, make, model, registered city, and claims history all influence the zero dep premium. Luxury vehicles and cars in metro cities generally attract higher rates.

How can I check if my car insurance includes zero dep cover?

Open the add-ons or endorsements section of your policy schedule and look for the zero depreciation add-on to confirm it is active.

Is zero dep available after 5 years?

Zero dep cover is usually available for cars up to five years old.

Should I buy zero dep insurance after 7 years?

The zero depreciation add-on does not apply to cars older than five years. A standard comprehensive policy is the right call at that stage.

Can I transfer the zero depreciation insurance to another owner?

Yes. The policy, add-ons included, can usually be transferred as long as the insurer is informed within the required timeframe.

How do I know if my car insurance policy has zero dep cover?

Open the add-ons section of your policy and look for zero depreciation, nil depreciation, or bumper-to-bumper add-ons.

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