March 2, 2024


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Why Should You Equip Your Car With A Zero Depreciation Cover? 

Difference Between Own Damage and Zero Depreciation Cover

Car insurance online or offline is beneficial as it protects you from the financial consequences of various unfortunate events while on the road. A comprehensive car insurance policy protects you against accidents, theft, flooding, vandalism, earthquakes, and other man-made and natural disasters. However, one thing that is not covered by a standard car insurance policy is depreciation! 

Depreciation means the loss of value for your vehicle and its parts due to wear and tear. In case of a claim, the insurance company will compensate you based on the vehicle’s depreciated value and components. This means the policyholder must pay the difference between the parts’ depreciated value and their replacement cost. 

You can easily avoid depreciation and its impact on your claims by selecting the depreciation waiver or zero depreciation add-on. Your policy will provide complete compensation for part replacements if you add this optional coverage. In the event of a claim, this will result in higher payouts and lower out-of-pocket expenses. Let’s look at how depreciation waiver or zero depreciation car insurance works. 


Three significant distinctions exist between a depreciation waiver or zero depreciation auto insurance and a standard comprehensive policy. These distinctions pertain to claim compensation, cost, and the vehicle’s eligibility age. You can easily distinguish between these two types of coverage, using the below information for either a fresh purchase or during the car insurance renewal on present policy. 


  1. Claim compensation:  

The most apparent distinction is that a policy with zero depreciation does not involve depreciation and is designed for full settlement. In comparison, standard coverage provides a claim based on the car’s current value, i.e., after depreciation. 


  1. Cost:  

An optional extra is the Depreciation Waiver or Zero Depreciation coverage. Although, you may have to pay a slightly higher premium if you want to include this add-on in your comprehensive car insurance policy.  

Advice: It is wise to calculate car insurance premium online before the final decision, this will help in identifying your needs and the actual premium price that it’ll come along with. 


  1. Vehicle eligibility age:  

You can purchase a standard comprehensive car insurance policy regardless of your vehicle’s age. Whether your car is one year old or fifteen, you can protect it with a comprehensive car insurance policy.  

What are the advantages of depreciation waiver or zero depreciation car insurance: 

Do you need help determining whether you should get standard coverage or zero-dep car insurance? On the other hand, the latter has several incredible advantages that will provide you with additional peace of mind every time you get behind the wheel of your vehicle. Some of these advantages are listed below to assist you in making an informed purchase decision. 


Advice: To calculate car insurance premium prior to finalising the requirements and budget from this type of car insurance can help make ideal choices. 

1. Provides a higher payout in the event of a claim: 

Assume you do not have zero depreciation car insurance and must file a claim under your policy. In this case, you will be compensated for replacements based on the depreciated value of the parts.


Fortunately, depreciation waiver or zero depreciation insurance for car does not consider depreciation when settling claims. This ensures that you receive a much higher payout for part replacements. 

2. Affordable: 

Because zero depreciation car insurance provides higher payouts, it reduces out-of-pocket expenses. This ensures that you will not have to spend your hard-earned money on part replacements in the event of a claim. 

3. Reasonably priced: 

You must be wondering that for the ideal coverage that zero-dep car insurance provides, the premium would be very high, right? On the contrary, the cost of this optional add-on is not prohibitively expensive. Adding zero depreciation coverage to your comprehensive car insurance online policy could be affordable. 


* Standard T&C Apply

‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.‘