Know Everything About Zero Depreciation Car Insurance

Zero depreciation car insurance has become extremely valuable at a time when there are a lot of accidents happening on the roads across India. The cover provides add-on benefits more than what you can find in the standard car insurance policy. You can get your car covered entirely with this policy that does not take into account the depreciation of the vehicle. In the event of your car getting damaged as a result of collision, you are entitled to get the entire cost from the insurance company. After getting through with the basic contours of zero depreciation cover, now see its comparison with the normal car insurance policy in the table below.

CriteriaStandard Car InsuranceZero Depreciation Car Insurance 
Age of the carYou can take this policy for a car aged more than 3 yearsGenerally, this policy is available for new cars only
Claim settlementClaim amount is determined on the current value of the car keeping in mind the depreciation factorDoes not factor in depreciation and thus offers complete coverage to the car
Cost of repairsYou will have to shell out some moneyInsurance company bears the cost

From the table, it is found that the features of zero depreciation car insurance cover is better than the standard one in terms of repair cost and claim settlement. But standard car insurance have a slight edge over zero depreciation policy in terms of age of the car and premium.

Zero depreciation cover-absolute necessity for new cars

It is advisable to take zero depreciation cover if you have a new car as the policy will protect the vehicle against all the damages and risks. Even though there have been a plethora of opinions suggesting this policy for new accident-prone drivers, but the cover can also help the experienced riders as they can also meet unwarranted accidents.

Benefits of zero depreciation can be briefly summarized in the points below.


  • You can recover the entire expenses made on the repairs of the car without factoring in the depreciation that results from wear and tear.
  • Zero depreciation cover pays for the damages caused to the glass, nylon, fibre, plastic and other parts of the car. But the same facility is not available under the standard policy.
  • Subscription to zero depreciation car insurance cover may be slightly higher than the normal one, but the gap can be easily narrowed when you raise the claim after a dreadful accident.
  • As you are assured of the fact that you are not going to face any monetary loss on account of damaged car with zero depreciation cover, it will bring tranquillity in your mind.
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Notwithstanding the benefits, there are certain factors that you need to be wary of before you say yes to zero depreciation car insurance. Please read below the points that you must keep in mind before taking the policy.


  • Zero depreciation cover is usually for new cars with a fixed age limit set by the insurer. So if your car is found out to be older than the specified age criteria, then the policy cover will not apply to the vehicle.
  • Not always the coverage is 100 per cent as it is being observed that some insurance companies do not provide cover for normal wear and tear, mechanical breakdown, etc under zero depreciation. Customers applying for zero depreciation are required to pay a mandatory policy excess known as compulsory excess.
  • The number of claims can be limited under zero depreciation cover, but the cap may vary from one insurer to the other.

Twelth Article

Tips to reduce premium on car insurance

In the age of inflation, nothing gets cheaper and car insurance premiums are no exception as they like other products are also getting expensive by the day. As you would be keen to sail through in today’s times of inflation, expensive insurance premiums can somewhat spoil your mood and pinch your pocket hard. So in order to ensure you enjoy the experience of seamless premium payment along with managing the family expenses at the same time, we have enlisted few points which you can consider.

Research on prices

Before you take insurance for your car, make sure you do the comparison of premiums and benefits provided by several companies including the one you are interested with. You can search for information like premium and others on the websites of insurance companies and other websites.

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Avoid claiming small expenses

It’s your right to recover the costs incurred on damage to your car from the insurer. But you can avoid making claims for small expenses such as a slightly broken tail light or a damaged bumper. You can go to a local mechanic and get that repaired at cheaper prices. The reason why you should do this is because of the fact that you will get no-claim bonus (NCB) for every claim-free year if you are an car insurance holder but have not made a claim. NCB refers to the number of years for which you have not made a claim on the car insurance policy. You can get a discount of up to 60-75% on the premium with an NCB of five years or above.

Transfer NCB to the new car

You can transfer the accumulated bonus to the new car that you purchase. So by the time you look to sell the car, have the insurance retained in your name. Subsequently, make sure you get the no-claim certificate from the insurance company and reserve the bonus if you do not want to purchase the new car immediately. You can transfer NCB within three years of the policy expiration.

Increase the deductible

Car insurance premium can be reduced if you increase the deductible, the amount which you are required to pay when you claim for the expenses. But in a bid to raise the deductible, don’t pay the hefty amount as doing the same will defeat the very purpose of buying car insurance. Instead you should pay the amount that you can afford. As it is required to renew car insurance every year, it is advisable you begin with a small deductible amount and increase it later depending upon your affordability.

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Bet on one good insurer for all the policies

The insurance premium on car is likely to get lower if you take all the coverage policies regarding health, life and personal from the same insurer.

Less premiums on more cars

If you can afford to buy multiple cars, then premiums can be reduced if all such vehicles are insured by the same company.

Avoid fancy car fantasy

As sports utility and fancy cars involve expensive repairs in the event of accidents, the insurance premiums for the same are generally higher. And if you stick to a certain budget, then it is advisable you do away with such cars and buy a normal one to keep the insurance premium low.

Avail discount

At a time when the traffic is jam packed, you may not find it comfortable to ride the car so often, Instead you would use other modes of transport. This actually nullifies the chances of accidents and thus certain insurers provide discount on such cars. You can avail this option if you are riding your car less.

Ride your car carefully

If you maintain a record of safe driving, then there are companies that provide discount in insurance premiums, believing that you are a good driver.

Place anti-theft devices in the car

It is necessary you install safety devices in your car in the face of growing thefts of vehicles across India. Annual insurance premium can be reduced by up to 5 per cent upon the installation of safety devices like anti-theft alarm, steering lock, gear lock and others.

Become the member of automobile bodies

Being a member of automobile bodies like Automobile Association of India (AAI) and others empowered under the Motor Vehicles Act and Rules can help you gain special discounts on insurance premium as members of AAI are considered to be safe drivers.

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