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Zero Depreciation Car Insurance


What is zero depreciation car insurance cover

Sometimes referred to as nil depreciation, zero depreciation cover is an add-on for the comprehensive car insurance policy and stand-alone own damage policy that allows you to claim the entire cost of replacing car parts in the event of an accident. As part of this cover, the claim amount will not be reduced by the depreciation value of the damaged parts.

Going for zero depreciation car insurance is always a wise decision. It lets you make the most out of your car insurance coverage by providing maximum reimbursement at the time of claim.

What are the benefits of the zero depreciation add-on in car insurance?

Higher Claim Pay Out

Higher claim pay-out

If you don't have zero dep, you will get the replacement cost based on the depreciated value at the time of claim. But zero depreciation cover does not take any depreciation into account while settling claims.

Better Savings

Better savings

Since you receive higher pay-outs in depreciation cover, you won't have to empty your wallet to meet the expense of the repaired parts.



Most individuals believe that zero depreciation comes at a high cost. However, when you weigh the price against the benefits, you will find that it does not put a strain on your budget.

Greater peace of mind

Greater peace of mind

When you buy car insurance with zero depreciation add-on, you obtain coverage for accidental damages to your car without any value reduction. As a result, you can drive your car without any worry.

Eligibility criteria for family health insurance

Should you opt for zero depreciation car insurance?

  • Are your hands new to the car's steering, or are you a fearful driver? Consider buying a zero-depreciation cover.

  • If you love taking your car on frequent long drives, then investing in a zero depreciation cover would be a good idea.

  • If you reside in an accident-prone or natural-calamity prone area, consider buying a zero dep add-on in your car insurance.

When does a zero depreciation add-on in car insurance come into play?

  • Inclusions
  • Exclusions

It will apply for repairs and replacement in case of:

  • Damage due to natural and man-made disaster

    If your car gets damaged due to a landslide, earthquake, or flood, or in a terrorist attack, riots, or vandalism, our zero dep add-on will help you.
  • Accidental damage

    If your car gets damaged in an accident, our zero depreciation add-on will have your back.
  • Damage during transit

    If you move your car from one location to another and it gets damaged in transit, we will cover it under our zero depreciation policy.

Zero dep will not apply if you claim for car damage for cases like:

  • Driving without a licence.
  • Driving under the influence of drugs or alcohol.
  • Normal wear and tear or mechanical breakdown.
  • Problem with engine oil, coolant, clutch oil etc.
  • Total loss to your car.
  • The cost of repairs equalling or exceeding its insured value.
  • Having claimed more than twice in a year under this add-on.

How to get zero depreciation car insurance online?

Zero depreciation is crucial for getting the most out of your car insurance. You can get it from our website in four easy steps.



Get a quote by sharing your vehicle registration and your contact details here.



Pick the plan you like and add zero depreciation cover to it.



Make the payment online using our secured payment gateway.



Get the car insurance policy with zero depreciation cover instantly.

How does zero depreciation in car insurance work?

When it comes to claim settlement, having a zero depreciation policy saves a lot of money. Even if your car is old, the depreciation rate with zero depreciation coverage is 0%. Here’s an example of what happens when your car insurance is with and without zero depreciation add-on.

Case 1: Car insurance without Zero Depreciation add-on If your car gets damaged in an accident and your damaged bumper’s repairs are worth ₹5,000. Then, your claim amount (what we’ll pay for) will be ₹1500 after applying a standard deductible of ₹1000 and 50% depreciation on plastic parts. Thus, you’ll have to pay ₹3500 in this case from your pocket.

Case 2: Car insurance with Zero Depreciation add-on If your car gets damaged in an accident and your damaged bumper’s repairs are worth ₹5,000. Then, your claim amount (what we’ll pay for) will come to ₹4000, and you will only need to pay ₹1000, which is a standard deductible applicable on all claims. An additional 50% deductible on plastic parts won’t apply to your claim.

Zero depreciation cover vs comprehensive car insurance

Parameters Zero depreciation add-on in car insurance Comprehensive car insurance without Zero Dep cover
Meaning A zero dep cover is an add-on in car insurance under which we won't charge you for depreciation during the claim settlement. In simple words, you are not required to pay for the depreciation cost while making a claim. A comprehensive policy provides coverage for own damage and damages caused to the third party. 
Premium When you opt for a zero dep add-on, the overall cost of your car insurance premium is increased. The comprehensive car insurance policy without zero depreciation add-on has a lower policy premium.
Number of claims You can make 2 claims in a policy year under zero depreciation cover. There’s no limit on the number of claims you can make under this policy during your policy period.
Depreciation cost Under zero depreciation add-on, you don’t need to pay the depreciation costs while filing the claim. During the claim settlement process, you have to pay the depreciation expenses from your pocket.
Savings By paying a slightly higher premium for zero dep, you save a lot on depreciation while filing a claim. Under the comprehensive policy without a zero dep policy, you will have to bear the cost of depreciation.

What is depreciation?

Just like any other product, cars are also subject to depreciation. They lose value over time due to wear and tear. In motor insurance, the customer is responsible for depreciation costs. As a result, the depreciation value is deducted from your claim amount. Zero depreciation coverage can help you avoid this.

How is depreciation calculated in car insurance?

When your car is new, its depreciation starts the instant you get behind the wheel; it immediately loses 5% of its ex-showroom value, and its worth continues to decline. This is termed as overall depreciation. In case of a complete loss or theft, you get your car's entire insured declared value, and no depreciation is applied on parts mentioned below. For partial loss, depreciation is computed on certain parts of your car that need a replacement.

Depreciation rates for various parts with and without depreciation cover.

Parts of car Depreciation rate without zero dep add-on Depreciation rate with zero dep add-on
Fibre glass parts 30% 0%
Glass parts 0% 0%
Rubbers/ plastic parts/ nylon/paint work/ tubes and tires/ batteries/ airbags parts 50% 0%

What is the role of a zero depreciation cover during claim settlement?

  • It covers the costs of depreciation that you would otherwise bear during the claim settlement procedure.

  • Zero dep enhances the value of basic car insurance and reduces your investment to nearly nothing at the time of claim settlement.

How to renew zero depreciation car insurance online?

You can renew your zero depreciation car insurance online with us in a hassle-free way. All you need to do is:

  • 1
    Click here to visit our car insurance renewal page.
  • 2
    Enter your vehicle’s registration number or your registered mobile number.
  • 3
    Click on ‘Proceed’.
  • 4
    Follow the instructions to renew your car insurance with zero depreciation add-on.

You can also visit the link sent to your registered mobile number and e-mail id to renew your car policy with zero depreciation add-on.

Things to remember about zero depreciation in car insurance

  • As zero dep is an add-on feature, it costs you slightly higher. You have to pay an additional premium on your comprehensive car insurance policy to get this add-on.

  • Under zero-dep insurance cover, you can make up to two claims in a policy year.

  • When filing a claim under a zero-depreciation policy, you need to pay the applicable compulsory deductible.

What are the factors affecting your zero depreciation car insurance premium?

Car’s age

Car’s age

We all know that the depreciation value of a car is proportional to its age. The older the car, the higher the zero dep premium.

Car’s model

Car’s model

For car insurance, the type of car is important. Because different models use different sorts of parts, the cost of these parts varies as well. As a result, the car model is considered when computing the premium for zero depreciation.

Your location

Your location

The premium for your zero depreciation will be high if you live in a place where road accidents are frequent or someplace that is prone to natural disasters. The cost of a zero-dep premium is determined by the location where you drive your car.

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Frequently asked questions about zero depreciation car insurance

Is zero depreciation required?

How much will a zero depreciation add-on cover cost?

The cost of zero depreciation add-on cover depends on the value of your car and a couple of factors more. Your car’s make model, age, place of registration, engine type, fuel type, and accessories installation determine the premium for a zero depreciation cover. You can check the premium applicable to your car by taking a quote here.

Is nil depreciation cover transferable to another owner?

Yes, one can easily transfer the zero depreciation cover with the car insurance to the car’s new owner as the nil depreciation policy is for the car and not the owner. However, the registration number of the car should remain the same.

How is zero depreciation car insurance premium determined?

If you are planning to opt for a zero depreciation cover, consider the following factors that influence your zero depreciation premium.
  • Place of registration: You might be charged higher for zero depreciation if your car is registered in major cities such as Mumbai, Bengaluru, Chennai and Delhi, among others.
  • Insured Declared Value (IDV): The IDV plays a crucial role in determining zero dep premium. When calculating the premium under the IDV, the depreciation is deducted from the insured car’s current worth.
  • Engine type: You might be charged higher for zero depreciation cover if you drive a car with a higher cubic capacity engine.
  • Accessories installation: Keep your budget in mind when installing accessories in your car. This is because the zero dep premium for additional features and accessories is calculated separately.
  • Car’s age: The older the car, the higher will be the zero-dep premium. Moreover, cars older than five years are not eligible for zero depreciation cover.
  • Fuel type: The cost for zero depreciation might be higher depending on whether you drive your car on CNG, diesel, petrol, or an electric car.

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