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Zero Depreciation Car Insurance

What is zero depreciation car insurance cover

Zero depreciation cover, also known as nil depreciation cover, is an add-on available with comprehensive car insurance and stand-alone own damage policies. This cover ensures that you receive the full cost of repairing or replacing car parts without any deduction for depreciation during your car insurance claims. Opting for zero depreciation car insurance is a smart choice, especially for new or luxury cars, as it maximises reimbursement, reduces out-of-pocket expenses and offers greater peace of mind in the event of an accident.

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

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

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.

Affordable

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

When you buy car insurance online 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 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.

Policy documents: Private car package policy wordings| Stand-alone own damage private car insurance policy wordings

How to get zero dep 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

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

Pay

Make the payment online using our secured payment gateway.

Policy

Get the car insurance policy with zero depreciation cover instantly.

The zero depreciation add-on in car insurance eliminates the deduction for depreciation on parts during claim settlement. Even for older cars, the depreciation rate under this cover is treated as 0%, which means you get higher compensation. For example:

Case 1: Car insurance without Zero Depreciation add-on Suppose your car is damaged in an accident, and bumper repairs cost ₹5,000. Without zero depreciation add-on, your insurer will deduct ₹1,000 as the standard deductible and 50% depreciation on plastic parts. As a result, the claimable amount will be only ₹1,500 and you will end up paying ₹3,500 from your own pocket.

Case 2: Car insurance with Zero Depreciation add-on In the same situation, if you have opted for zero depreciation coverage, the insurer will pay ₹4,000 and you will pay just ₹1,000 as the standard deductible. The additional 50% deduction on plastic parts won’t apply. This add-on is highly recommended for new cars and luxury vehicles, as it provides comprehensive financial protection and lowers out-of-pocket expenses.

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 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 insurancec 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

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

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

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.

Reviews and ratings
for zero depreciation in car insurance

4.2
Our customers have rated us
Based on 132 reviews

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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!!

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.

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

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.

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.

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!

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.

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.

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.

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.

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!

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.

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!

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.

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!

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!

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.

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.

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.

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!

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.

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Read all reviews

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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 in car insurance 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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Zero Depreciation Car Insurance

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Understand your vehicle registration number

What is zero depreciation car insurance cover

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

Higher claim pay-out

Better savings

Affordable

Greater peace of mind

Should you opt for zero depreciation insurance?

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

It will apply for repairs and replacement in case of:

Damage due to natural and man-made disaster

Accidental damage

Damage during transit

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

How to get zero dep car insurance online?

Share

Pick

Pay

Policy

Zero depreciation cover vs comprehensive car insurance

What is depreciation?

How is depreciation calculated in car insurance?

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

How to renew zero depreciation insurance online?

Things to remember about zero depreciation in car insurance

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

Car’s age

Car’s model

Your location

Reviews and ratings for zero depreciation in car insurance

4.2

Andleeb Mandai

Puneet Gupta

Arvind Chauhan

Asif Khan Chowdhury

Shahnawaz Mateen

Nilesh Date

Mithun Chakraborty

Sivakumar Kr

Manoj Kumar

Karthikeyan P

Lyton Roy

Sarguna Raja Marimuthu

Neeraj Kumar

Vijay Choudhary

Senthilnathan C

Prashant Deshmukh

Rajeev Palanki

Satish Chandra

Arindam Sau

P.K. Dhar

Vikram Singh Kaintura

Jigar Katoriya

Sridhar K.

Rahul Thathoo

Arun Saxena

Hemant Srivastava

Eshwar Pavan Manthena

Bala Showry Raju Pudota

Jayamurugan Natarajan

Nitin Baban Pabal

Narasimha Rao Gopisetty

Praveen Redddy

Radhakrishnan A.R.

Saurabh Prasad

Adarsh Kumar Singh

Suhel Singh

Palanisamy Aspa

Raja Rajeshwaran

Kapil Kumar

Varagunan Sambandam

Varad Sawant

Rajnesh Dagar

Abhineet Mittra

Vishnu Sarkar

Reviews and ratings
for zero depreciation in car insurance