Zero Depreciation car insurance
Maximise your claim with Zero Depreciation add-on
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What is zero depreciation car insurance cover?
Zero depreciation, also known as nil depreciation or zero dep, is an add-on cover in car insurance that ensures you receive the full claim amount without any deduction for depreciation on car parts.
In a regular policy, the insurer deducts the depreciated value of parts before settling a claim. With this add-on, you get full reimbursement for the cost of repairs or replacements, making it a smart choice for new or luxury cars.
Choosing 0 depreciation car insurance cover helps you maximize your claim payout and ensures better financial protection for your vehicle.
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Key Benefits of Adding Zero Depreciation Car Insurance to Your Policy
Adding zero depreciation cover to your car insurance provides many valuable benefits:
Who Should Opt For A Zero Depreciation Car Insurance Add-on Cover?
For those who have recently bought a car or own a relatively new one, a zero-depreciation add-on is a prudent choice. Here’s why this coverage could benefit you:
Costly Spare Parts
If your car has expensive spare parts, their high depreciation can result in hefty out-of-pocket expenses. A zero-depreciation policy eliminates this burden by covering the full repair cost.
For New Drivers
Inexperienced drivers are more likely to face accidents, resulting in frequent repairs or part replacements. A zero-depreciation insurance policy can help you recover the full repair cost, saving you from unexpected financial strain.
Driving in Risky Areas
If you often drive in accident-prone regions, the likelihood of damage and repair costs increases. Investing in zero dep insurance ensures you won’t bear the brunt of such expenses from your pocket.
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What is covered/not covered under the zero depreciation add-on cover
With a zero depreciation add-on cover, you can avoid depreciation deductions on repair costs, but it is important to clearly understand its coverage and exclusions.
Plastic, rubber, and fibre parts
Covers full repair or replacement cost of bumpers, headlights, mirrors, and other plastic, rubber, or fibre components.
Metal parts
Provides complete coverage for metal body panels and structural components damaged due to an accident or collision.
Electrical and mechanical parts
Covers accident-related damage to electrical and mechanical parts, but excludes normal wear, breakdowns, or internal failures.
Accidental damage
Cover repairs or replacements required due to accidental damage, ensuring your vehicle is restored without additional repair costs.
Mechanical or electrical failures
Damage caused by internal mechanical or electrical breakdowns is not covered under this policy.
Commercial use
Claims may be rejected if a privately insured car is used for taxi, rental, or goods transport.
Loss or damage due to war, terrorism, or nuclear risks
Damage caused by war, terrorism, nuclear activity, or related risks is not covered.
Driving in a reckless manner
Damage resulting from reckless, careless, or negligent driving is excluded from coverage.
Wear and tear
Normal wear and tear, including tyres, batteries, and engine oil, is not covered.
Engine damage due to waterlogging
Engine damage from water entry or oil leakage is excluded without an engine protect add-on.
Illegal activities
No coverage applies if the vehicle was involved in illegal or unlawful activities.
Drunken driving or other violations
No claims allowed if the driver was intoxicated, on drugs, or without a valid licence.
Consequential damages
Indirect damage caused by ignoring earlier issues or continued driving after an accident is excluded.
Outside geographical limits
Damage occurring outside the policy’s defined territorial limits is not covered.
Zero Depreciation car insurance vs comprehensive car insurance
Parameter | Zero Depreciation Car Insurance | Comprehensive Car Insurance |
Meaning | An add-on cover with a Comprehensive Policy that prevents the insurer from deducting depreciation on car parts during claims. | A bundled policy including Third-party and Own Damage cover, but depreciation is deducted during claim settlements. |
Premium | Slightly higher premium compared to comprehensive coverage due to enhanced claim benefits. | Lower premium compared to zero dep insurance, as it does not include zero depreciation benefits. |
Eligible Car Age | Typically available for vehicles up to 5 years old. | Available for all vehicles up to 15 years old, depending on the insurer’s terms. |
Depreciation Factor | Depreciation on parts is not deducted during claim settlement (except for mandatory deductibles). | Depreciation is applied on replaced or repaired parts, reducing the claim amount. |
Savings | Lower out-of-pocket expenses during repairs; ideal for minimising personal expenses post-accident. | Saves on premium initially, but may lead to higher expenses during claim settlements. |
Depreciation rates in car insurance
Depreciation in car insurance reduces the claim amount as your vehicle ages, making it essential to understand how rates impact your coverage and out-of-pocket costs. To ensure transparency, IRDAI has established specific depreciation rates for car parts to calculate claims under standard car insurance policies. Here’s a quick breakdown:
Rate of Depreciation for All Parts Approved by IRDAI
CAR PARTS | RATE OF DEPRECIATION |
Rubber, Plastic, and Nylon Parts | 50% depreciation applies |
Glass Parts | No depreciation is applied—100% of the cost is covered. |
Fiberglass Parts | 30% depreciation |
Rate of Depreciation in Vehicles: Metallic Parts
AGE OF CAR | RATE OF DEPRECIATION |
Less Than 6 Months | 5% |
More Than 6 Months to 1 Year | 10% |
More Than 1 Year to 2 Years | 20% |
More Than 2 Years to 3 Years | 30% |
More Than 3 Years to 4 Years | 40% |
4+ years | 50% |
How Nil Dep Insurance Works During a Claim?
Zero Depreciation Car Insurance covers the full cost of repairing or replacing parts without deducting depreciation. Usually, we reduce claim payouts by factoring in the wear and tear value of parts. With Zurich Kotak’s Zero Depreciation cover, you only pay the standard deductible, while the insurer covers the rest.
For Example:
● Without zero depreciation: Repair cost Rs. 8,000, 40% depreciation + Rs. 1,200 deductible, you pay Rs. 4,400.
● With zero depreciation: Repair cost Rs. 8,000, no depreciation deduction, only Rs. 1,200 deductible, you pay Rs. 1,200.
This add-on maximises your claim payout and reduces your out-of-pocket repair expenses. This cover is ideal for new and luxury cars, providing protection usually up to 5 years (subject to policy terms).
Why Choose Zurich Kotak for Your 0 Depreciation Car Insurance?
Choose Zurich Kotak Zero Depreciation Car Insurance for complete financial protection against the depreciation cost of car parts during claims. Unlike a standard policy that deducts depreciation from the claim amount, this add-on ensures you get full reimbursement of parts cost, subject to policy terms, deductibles, and surveyor assessment, saving you from unexpected expenses.
Trusted claim settlements
Zurich Kotak combines clear policy terms with reliable claims processing and support. With Zero Depreciation included, you benefit from structured claim processes and transparent computation, so you know what will be covered and how the settlement works.
Benefit from an extensive network of cashless garages
Zurich Kotak’s nationwide cashless garage network helps you get authorised repairs quickly, with bills settled directly with the garage, subject to policy approval, reducing delays and out-of-pocket payments.
Tailored to your car’s needs
We offer flexible options so you can choose zero dep for the initial years of your car when part replacement is costliest. Multi-year eligibility and add-on bundles help you tailor coverage based on model, usage, and budget.
Competitive pricing & clear value
Zero Depreciation is priced to give clear, measurable value: a small premium uplift can save thousands at claim time. Zurich Kotak’s pricing is transparent and supported by online quotes and customised recommendations.
Digital convenience & support
Buy, renew, add covers, and raise claims through Zurich Kotak’s digital channels. Real-time claim tracking, dedicated support, and guided documentation make the process fast and customer-friendly.
Factors Affecting Zero Depreciation Premium
Several important factors influence the cost of zero depreciation add-on premiums, helping you understand how your car insurance premium is calculated.
Age of the vehicle
Newer cars typically qualify and attract lower add-on premiums.
Car make & model
Premiums are higher for luxury or premium models, where parts are more expensive. Compact or mass-market cars tend to have lower add-on rates.
Insured Declared Value (IDV)
A higher IDV increases the overall premium and thus the add-on cost.
Claim history
A history of frequent claims can increase the combined premium; conversely, a good NCB can reduce renewals.
Geographical location
Vehicles registered in high-risk or metro areas may attract slightly higher rates due to greater claims exposure.
Add-on bundling
Buying zero dep with other add-ons (engine protect, consumables) may change the premium structure. Bundling discounts may apply.
How to Get Zero Depreciation Car Insurance Online?
Zero Hassles, Full Coverage—Just a Click Away!
Buying zero depreciation insurance online is as effortless as cruising down an open road. Just a few clicks—enter details, pick your add-on, and pay. No paperwork, No waiting — with Zurich Kotak General Insurance
Click on the "Get a Car Insurance Quote" button on the Zurich Kotak Car Insurance Page
Fill in your car details such as registration number, model, make etc.
Fill in you personal details and make the payment online.
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How is 0 Depreciation Car Insurance Premium Determined?
The premium for zero dep cover depends on several factors:
How to renew zero depreciation insurance online?
Renew Your Zero Depreciation Policy in No Time!
Keep your car protected effortlessly—just follow these simple steps. Visit the Zurich Kotak Car Insurance page, get an instant quote, and renew your zero depreciation policy with a click.
Visit https://www.zurichkotak.com/renewal and choose the car insurance policy that you want to renew.
Enter your policy number and mobile number and click on ‘Submit’
Your policy number will be verified, and you will be able to check the details of your existing policy. You can continue to renew the existing policy or make changes.
Pay the renewal premium and your policy will be done instantly.
Zero depreciation cover claim settlement at Zurich Kotak General Insurance
Filing a claim has never been this easy – we made sure of it
Call us on 1800 266 4545 (8 a.m. – 8 p.m.) and intimate us about your claim with the details of your policy.
Once your claim is registered, our customer support executive will provide you with a Claim Reference Number.
You will be required to submit the relevant documents, which may include your Driving License, RC Copy, and Policy FIR Copy, in accordance with the Policy terms and conditions.
An arrangement will be made by us for an inspection, it will be conducted within 24 hours if a claim is reported on a working day, or the next working day if the claim is reported on a Sunday or a public holiday.
On cashless facility confirmation, the vehicle can be repaired at a preferred network garage, on payment made directly to the garage.
You will only be required to pay the deductible as mentioned in the policy, and the depreciation value, salvage, etc., as informed by the surveyor.
Call us on 1800 266 4545 (8 a.m. – 8 p.m.) and intimate us about your claim with the details of your policy.
Once your claim is registered, our customer support executive will provide you with a Claim Reference Number.
You will be required to submit the relevant documents, which may include your Driving License, RC Copy, and Policy FIR Copy, in accordance with the Policy terms and conditions.
An arrangement will be made by us for an inspection, it will be conducted within 24 hours if a claim is reported on a working day, or the next working day if the claim is reported on a Sunday or a public holiday.
The vehicle can then be repaired by the insurer followed by the payment for the same by the insurer.
Submit all bills, payment receipt along with your policy details to us, and we will make the payment within 7 working days of completion of the documentation
Documents required to file zero depreciation add-on cover
Get familiar with the documents needed for speedy claim process
Registration Certificate (RC) Copy
Policy Copy
Policy holder's valid ID proof
Drivers Driving license
FIR Copy (In case of theft and TP claim)
Duly filled Claim form
Any further requirements will be conveyed basis inspection
How to download your policy copy
Here is your step-by-step guide to access your policy copy
Losing your zero depreciation car insurance policy may lead you to pay heavy fines, although you have one. But now, you can immediately download your zero depreciation car insurance policy copy from our website.
Enter your policy number
Enter your registered mobile number Or your registered email Id
Click on Get OTP
Type the OTP and click on download car insurance policy document
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Frequently Asked Questions
Zero dep cover is an extremely useful add-on. It ensures you get higher payouts in case of a claim and ensures that repair costs do not burn a hole in your pocket.
Bumper-to-bumper insurance is often used interchangeably with zero depreciation cover. Both mean the insurer pays the full claim amount without deducting the depreciation value of car parts. This cover protects car owners from paying extra for wear and tear when claiming repairs, unlike regular comprehensive insurance, which deducts depreciation.
Usually, the zero depreciation add-on is available for cars up to 5 years old. The availability and premium might vary based on the car’s age and model. It is best to check the specific policy details for age limits and coverage. This add-on helps cover the full claim amount without deducting depreciation on parts during the repair process.
A zero dep car insurance gives coverage for the depreciable parts in case of an accident or theft. Usually, insurers deduct the car's depreciating value from the claim amount when settling the claim.
Own damage insurance vs zero depreciation car insurance. You can get car insurance coverage for own damage only if you buy a Comprehensive Plan. On the other hand, you need to separately buy the Zero Depreciation car insurance add-on to get coverage against depreciation on the vehicle
A zero depreciation policy is usually not available as a standalone policy, but rather as an add-on cover. You may not be able to buy it separately or with a third-party liability policy alone. Instead, you can add it to your comprehensive coverage.
The number of claims allowed varies by policy. Refer to your Zurich Kotak General Insurance policy document for specific details.
No, it generally does not include engine damages, tyre wear and tear, or consumables unless bundled with additional covers.
Yes, the premium for this cover is slightly higher, but it reduces financial liabilities significantly during claims.
You can include it as an add-on while purchasing or renewing your Zurich Kotak car insurance policy.
Yes, regular wear and tear, mechanical breakdowns, and damage due to uninsured risks are not covered.
Yes, you can opt for it at the time of renewal, subject to policy terms and your car’s eligibility.