{"id":42364,"date":"2026-08-19T13:30:00","date_gmt":"2026-08-19T08:00:00","guid":{"rendered":"https:\/\/kuvera.in\/blog\/?p=42364"},"modified":"2026-08-17T08:45:47","modified_gmt":"2026-08-17T03:15:47","slug":"what-is-zero-depreciation-car-insurance-and-who-should-consider-it","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/what-is-zero-depreciation-car-insurance-and-who-should-consider-it\/","title":{"rendered":"What Is Zero Depreciation Car Insurance and Who Should Consider It ?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_86 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/kuvera.in\/blog\/what-is-zero-depreciation-car-insurance-and-who-should-consider-it\/#how_depreciation_works_in_a_standard_policy\" >how depreciation works in a standard policy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/kuvera.in\/blog\/what-is-zero-depreciation-car-insurance-and-who-should-consider-it\/#what_zero_depreciation_cover_does\" >what zero depreciation cover does<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/kuvera.in\/blog\/what-is-zero-depreciation-car-insurance-and-who-should-consider-it\/#who_should_consider_zero_depreciation_cover\" >who should consider zero depreciation cover<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/kuvera.in\/blog\/what-is-zero-depreciation-car-insurance-and-who-should-consider-it\/#what_is_excluded\" >what is excluded<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/kuvera.in\/blog\/what-is-zero-depreciation-car-insurance-and-who-should-consider-it\/#key_limitations_and_costs\" >key limitations and costs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/kuvera.in\/blog\/what-is-zero-depreciation-car-insurance-and-who-should-consider-it\/#frequently_asked_questions\" >frequently asked questions<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p class=\"wp-block-paragraph\">a comprehensive car insurance policy may not be as comprehensive as it sounds. when a claim is filed, insurers deduct depreciation on every replaced part before settling the payout. the older the car, the less the insurer pays&nbsp;<a href=\"https:\/\/www.paybima.com\/blog\/car-insurance\/is-zero-depreciation-car-insurance-worth-it#1\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.zurichkotak.com\/knowledge-center\/car-insurance\/comprehensive-vs-zero-depreciation-insurance\" target=\"_blank\" rel=\"noopener\"><\/a>. this leaves the owner to cover the gap. zero depreciation cover is an add-on that removes that deduction&nbsp;<a href=\"https:\/\/www.sbigeneral.in\/motor-insurance\/private-car-insurance\/zero-depreciation-car-insurance\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.paybima.com\/blog\/car-insurance\/is-zero-depreciation-car-insurance-worth-it#1\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how_depreciation_works_in_a_standard_policy\"><\/span><strong>how depreciation works in a standard policy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">depreciation is the reduction in a car&#8217;s value over time due to wear and tear. every part of a car depreciates at a different rate&nbsp;<a href=\"https:\/\/www.sbigeneral.in\/motor-insurance\/private-car-insurance\/zero-depreciation-car-insurance\" target=\"_blank\" rel=\"noopener\"><\/a>. plastic and rubber components lose value faster than metal parts&nbsp;<a href=\"https:\/\/www.sbigeneral.in\/motor-insurance\/private-car-insurance\/zero-depreciation-car-insurance\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.91wheels.com\/buyers-guide\/zero-depreciation-car-insurance-explained-benefits-limitations-claim-rules-and-whether-its-worth-it#1\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">a damaged bumper worth \u20b910,000 may fetch only \u20b95,000 from the insurer after depreciation&nbsp;<a href=\"https:\/\/www.business-standard.com\/finance\/personal-finance\/zero-depreciation-cover-may-be-the-shield-your-car-insurance-misses-125082700412_1.html#1\" target=\"_blank\" rel=\"noopener\"><\/a>. the owner pays the rest out of pocket. with zero depreciation cover, the insurer pays the full \u20b910,000&nbsp;<a href=\"https:\/\/www.business-standard.com\/finance\/personal-finance\/zero-depreciation-cover-may-be-the-shield-your-car-insurance-misses-125082700412_1.html#1\" target=\"_blank\" rel=\"noopener\"><\/a>. the difference can be significant.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>typical depreciation rates (for cars under 5 years)<\/strong>&nbsp;<a href=\"https:\/\/www.spinny.com\/blog\/what-is-zero-depreciation-in-car-insurance\/#respond\" target=\"_blank\" rel=\"noopener\"><\/a>:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">age of vehicle<\/th><th class=\"has-text-align-left\" data-align=\"left\">depreciation rate<\/th><\/tr><\/thead><tbody><tr><td>less than 6 months<\/td><td>5%<\/td><\/tr><tr><td>6 months to 1 year<\/td><td>15%<\/td><\/tr><tr><td>1 to 2 years<\/td><td>20%<\/td><\/tr><tr><td>2 to 3 years<\/td><td>30%<\/td><\/tr><tr><td>3 to 4 years<\/td><td>40%<\/td><\/tr><tr><td>4 to 5 years<\/td><td>50%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">these rates are set by the insurance regulatory and development authority of india&nbsp;<a href=\"https:\/\/www.spinny.com\/blog\/what-is-zero-depreciation-in-car-insurance\/#respond\" target=\"_blank\" rel=\"noopener\"><\/a>. for older vehicles, depreciation can be 40-50% on rubber and plastic parts and 30-40% on fibre components&nbsp;<a href=\"https:\/\/www.universalsompo.com\/blogs\/motor-insurance\/zero-dep-car-insurance-after-5-years\/\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what_zero_depreciation_cover_does\"><\/span><strong>what zero depreciation cover does<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">zero depreciation cover waives the depreciation deduction on replaced parts during a claim&nbsp;<a href=\"https:\/\/www.shriramgi.com\/article\/is-zero-depreciation-car-insurance-worth-it-for-new-cars-in-2026\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.paybima.com\/blog\/car-insurance\/is-zero-depreciation-car-insurance-worth-it#1\" target=\"_blank\" rel=\"noopener\"><\/a>. the insurer pays the full cost of repair or replacement for eligible parts&nbsp;<a href=\"https:\/\/www.paybima.com\/blog\/car-insurance\/is-zero-depreciation-car-insurance-worth-it#1\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.zurichkotak.com\/knowledge-center\/car-insurance\/comprehensive-vs-zero-depreciation-insurance\" target=\"_blank\" rel=\"noopener\"><\/a>. it covers plastic, rubber, and metal parts, ensuring comprehensive protection&nbsp;<a href=\"https:\/\/www.sbigeneral.in\/motor-insurance\/private-car-insurance\/zero-depreciation-car-insurance\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>how a claim changes with zero dep cover<\/strong>&nbsp;<a href=\"https:\/\/www.shriramgi.com\/article\/is-zero-depreciation-car-insurance-worth-it-for-new-cars-in-2026\" target=\"_blank\" rel=\"noopener\"><\/a>:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">item<\/th><th class=\"has-text-align-left\" data-align=\"left\">cost<\/th><th class=\"has-text-align-left\" data-align=\"left\">standard payout (with dep)<\/th><th class=\"has-text-align-left\" data-align=\"left\">zero dep payout<\/th><\/tr><\/thead><tbody><tr><td>front bumper<\/td><td>\u20b915,000<\/td><td>~\u20b99,000<\/td><td>\u20b915,000<\/td><\/tr><tr><td>headlamp<\/td><td>\u20b918,000<\/td><td>~\u20b912,000<\/td><td>\u20b918,000<\/td><\/tr><tr><td>side mirror<\/td><td>\u20b98,000<\/td><td>~\u20b95,000<\/td><td>\u20b98,000<\/td><\/tr><tr><td><strong>total<\/strong><\/td><td><strong>\u20b954,000<\/strong><\/td><td><strong>~\u20b935,000<\/strong><\/td><td><strong>\u20b954,000<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">the gap widens when damage involves multiple plastic, rubber, or fibre parts&nbsp;<a href=\"https:\/\/www.91wheels.com\/buyers-guide\/zero-depreciation-car-insurance-explained-benefits-limitations-claim-rules-and-whether-its-worth-it#1\" target=\"_blank\" rel=\"noopener\"><\/a>. zero depreciation can be particularly valuable for new cars, premium vehicles, and daily drivers in urban areas&nbsp;<a href=\"https:\/\/www.shriramgi.com\/article\/is-zero-depreciation-car-insurance-worth-it-for-new-cars-in-2026\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.universalsompo.com\/blogs\/motor-insurance\/zero-dep-car-insurance-after-5-years\/\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"who_should_consider_zero_depreciation_cover\"><\/span><strong>who should consider zero depreciation cover<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>new car owners.<\/strong>&nbsp;cars lose value quickly in the first few years. this cover ensures full reimbursement of repair costs&nbsp;<a href=\"https:\/\/www.sbigeneral.in\/motor-insurance\/private-car-insurance\/zero-depreciation-car-insurance\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.business-standard.com\/finance\/personal-finance\/zero-depreciation-cover-may-be-the-shield-your-car-insurance-misses-125082700412_1.html#1\" target=\"_blank\" rel=\"noopener\"><\/a>. zero depreciation cover is typically available for cars up to 5 years old&nbsp;<a href=\"https:\/\/www.tataaig.com\/knowledge-center\/car-insurance\/benefits-of-zero-depreciation-during-car-insurance-claims#1\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.hdfcergo.com\/blogs\/car-insurance\/zero-depreciation-car-insurance-after-5-years\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>luxury and premium car owners.<\/strong>&nbsp;parts for these cars are expensive. depreciation deductions can be sizeable. a single claim can justify the extra premium&nbsp;<a href=\"https:\/\/www.sbigeneral.in\/motor-insurance\/private-car-insurance\/zero-depreciation-car-insurance\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.business-standard.com\/finance\/personal-finance\/zero-depreciation-cover-may-be-the-shield-your-car-insurance-misses-125082700412_1.html#1\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>drivers in high-traffic or accident-prone areas.<\/strong>&nbsp;those in congested urban areas or regions with poor road conditions face higher accident risk. the add-on offers financial protection&nbsp;<a href=\"https:\/\/www.sbigeneral.in\/motor-insurance\/private-car-insurance\/zero-depreciation-car-insurance\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.business-standard.com\/finance\/personal-finance\/zero-depreciation-cover-may-be-the-shield-your-car-insurance-misses-125082700412_1.html#1\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>new or inexperienced drivers.<\/strong>&nbsp;with a higher chance of minor accidents, zero depreciation provides peace of mind&nbsp;<a href=\"https:\/\/www.business-standard.com\/finance\/personal-finance\/zero-depreciation-cover-may-be-the-shield-your-car-insurance-misses-125082700412_1.html#1\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.spinny.com\/blog\/what-is-zero-depreciation-in-car-insurance\/#respond\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>those who drive daily in cities.<\/strong>&nbsp;for frequent commuters in cities like mumbai, bangalore, or delhi, fender benders and parking scrapes are common&nbsp;<a href=\"https:\/\/www.universalsompo.com\/blogs\/motor-insurance\/zero-dep-car-insurance-after-5-years\/\" target=\"_blank\" rel=\"noopener\"><\/a>. the cover reduces out-of-pocket costs significantly&nbsp;<a href=\"https:\/\/www.universalsompo.com\/blogs\/motor-insurance\/zero-dep-car-insurance-after-5-years\/\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what_is_excluded\"><\/span><strong>what is excluded<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">zero depreciation does not cover everything&nbsp;<a href=\"https:\/\/www.tataaig.com\/knowledge-center\/car-insurance\/benefits-of-zero-depreciation-during-car-insurance-claims#1\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.paybima.com\/blog\/car-insurance\/is-zero-depreciation-car-insurance-worth-it#1\" target=\"_blank\" rel=\"noopener\"><\/a>. the following are not covered:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>tyres, tubes, and batteries.<\/strong>\u00a0unless specifically included in the policy wording\u00a0<a href=\"https:\/\/www.tataaig.com\/knowledge-center\/car-insurance\/benefits-of-zero-depreciation-during-car-insurance-claims#1\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.paybima.com\/blog\/car-insurance\/is-zero-depreciation-car-insurance-worth-it#1\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/li>\n\n\n\n<li><strong>engine damage from water ingress or oil leakage.<\/strong>\u00a0a separate engine protection add-on is required\u00a0<a href=\"https:\/\/www.paybima.com\/blog\/car-insurance\/is-zero-depreciation-car-insurance-worth-it#1\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.zurichkotak.com\/knowledge-center\/car-insurance\/comprehensive-vs-zero-depreciation-insurance\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/li>\n\n\n\n<li><strong>mechanical breakdowns and wear and tear.<\/strong>\u00a0these are considered maintenance, not accidental damage\u00a0<a href=\"https:\/\/www.tataaig.com\/knowledge-center\/car-insurance\/benefits-of-zero-depreciation-during-car-insurance-claims#1\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.paybima.com\/blog\/car-insurance\/is-zero-depreciation-car-insurance-worth-it#1\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/li>\n\n\n\n<li><strong>consumables<\/strong>\u00a0like engine oil, coolant, nuts, and bolts. a separate consumables cover may be needed\u00a0<a href=\"https:\/\/www.zurichkotak.com\/knowledge-center\/car-insurance\/comprehensive-vs-zero-depreciation-insurance\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/li>\n\n\n\n<li><strong>total loss or constructive total loss.<\/strong>\u00a0if the car is damaged beyond repair or repair costs exceed a certain percentage of the insured declared value, the claim is settled based on the idv. zero depreciation benefits do not apply\u00a0<a href=\"https:\/\/www.tataaig.com\/knowledge-center\/car-insurance\/benefits-of-zero-depreciation-during-car-insurance-claims#1\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"key_limitations_and_costs\"><\/span><strong>key limitations and costs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>higher premium.<\/strong>&nbsp;adding zero depreciation cover increases the premium by 15-30%&nbsp;<a href=\"https:\/\/www.zurichkotak.com\/knowledge-center\/car-insurance\/comprehensive-vs-zero-depreciation-insurance\" target=\"_blank\" rel=\"noopener\"><\/a>. for an own-damage premium of \u20b915,000, the add-on might cost an additional \u20b92,000-\u20b94,500 per year&nbsp;<a href=\"https:\/\/www.zurichkotak.com\/knowledge-center\/car-insurance\/comprehensive-vs-zero-depreciation-insurance\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>claim limits.<\/strong>&nbsp;most insurers limit zero depreciation claims to 2-3 per policy year&nbsp;<a href=\"https:\/\/www.business-standard.com\/finance\/personal-finance\/zero-depreciation-cover-may-be-the-shield-your-car-insurance-misses-125082700412_1.html#1\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.zurichkotak.com\/knowledge-center\/car-insurance\/comprehensive-vs-zero-depreciation-insurance\" target=\"_blank\" rel=\"noopener\"><\/a>. exceeding this limit means standard depreciation deductions apply.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>vehicle age limit.<\/strong>&nbsp;the cover is usually available only for vehicles up to 5 years old&nbsp;<a href=\"https:\/\/www.tataaig.com\/knowledge-center\/car-insurance\/benefits-of-zero-depreciation-during-car-insurance-claims#1\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.hdfcergo.com\/blogs\/car-insurance\/zero-depreciation-car-insurance-after-5-years\" target=\"_blank\" rel=\"noopener\"><\/a>. some insurers extend it to 7 years for well-maintained cars, but terms become more stringent&nbsp;<a href=\"https:\/\/www.hdfcergo.com\/blogs\/car-insurance\/zero-depreciation-car-insurance-after-5-years\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.universalsompo.com\/blogs\/motor-insurance\/zero-dep-car-insurance-after-5-years\/\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>no claim bonus impact.<\/strong>&nbsp;claims made under zero depreciation cover reset the no claim bonus to zero at the next renewal, just like standard comprehensive claims&nbsp;<a href=\"https:\/\/www.zurichkotak.com\/knowledge-center\/car-insurance\/comprehensive-vs-zero-depreciation-insurance\" target=\"_blank\" rel=\"noopener\"><\/a>. adding ncb protection cover separately can help preserve the bonus.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"frequently_asked_questions\"><\/span><strong>frequently asked questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>1. is zero depreciation cover worth it for a new car?<\/strong><br>yes. new cars depreciate the most in the first few years. a single claim can save far more than the additional premium&nbsp;<a href=\"https:\/\/www.shriramgi.com\/article\/is-zero-depreciation-car-insurance-worth-it-for-new-cars-in-2026\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.business-standard.com\/finance\/personal-finance\/zero-depreciation-cover-may-be-the-shield-your-car-insurance-misses-125082700412_1.html#1\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>2. can zero depreciation cover be bought for a car older than 5 years?<\/strong><br>most insurers do not offer it beyond 5 years. some extend to 7 years for well-maintained vehicles, but the cost-benefit may not justify it&nbsp;<a href=\"https:\/\/www.hdfcergo.com\/blogs\/car-insurance\/zero-depreciation-car-insurance-after-5-years\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.universalsompo.com\/blogs\/motor-insurance\/zero-dep-car-insurance-after-5-years\/\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>3. does zero depreciation cover all repairs?<\/strong><br>it covers repair or replacement of eligible parts without depreciation deduction. exclusions like tyres, batteries, engine damage from water, and mechanical breakdown still apply&nbsp;<a href=\"https:\/\/www.tataaig.com\/knowledge-center\/car-insurance\/benefits-of-zero-depreciation-during-car-insurance-claims#1\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.paybima.com\/blog\/car-insurance\/is-zero-depreciation-car-insurance-worth-it#1\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>4. how many zero depreciation claims can be made in a year?<\/strong><br>most policies limit zero depreciation claims to 2-3 per year. claims beyond that revert to standard depreciation deductions&nbsp;<a href=\"https:\/\/www.business-standard.com\/finance\/personal-finance\/zero-depreciation-cover-may-be-the-shield-your-car-insurance-misses-125082700412_1.html#1\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.zurichkotak.com\/knowledge-center\/car-insurance\/comprehensive-vs-zero-depreciation-insurance\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>5. does zero depreciation affect the no claim bonus?<\/strong><br>yes. filing a zero depreciation claim resets the ncb to zero at the next renewal, just like any other own-damage claim&nbsp;<a href=\"https:\/\/www.zurichkotak.com\/knowledge-center\/car-insurance\/comprehensive-vs-zero-depreciation-insurance\" target=\"_blank\" rel=\"noopener\"><\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>a comprehensive car insurance policy may not be as comprehensive as it sounds. when a claim is filed, insurers deduct depreciation on every replaced part before settling the payout. the older the car, the less the insurer pays&nbsp;. this leaves the owner to cover the gap. zero depreciation cover is an add-on that removes that [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/kuvera.in\/blog\/what-is-zero-depreciation-car-insurance-and-who-should-consider-it\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":41,"featured_media":42367,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[112],"tags":[],"class_list":["post-42364","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insurance"],"yoast_head":"<!-- This site is optimized 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older the car, the less the insurer pays&nbsp;. this leaves the owner to cover the gap. zero depreciation cover is an add-on that removes that [...]Read More...","og_url":"https:\/\/kuvera.in\/blog\/what-is-zero-depreciation-car-insurance-and-who-should-consider-it\/","og_site_name":"Kuvera","article_publisher":"https:\/\/www.facebook.com\/kuvera.in","article_published_time":"2026-08-19T08:00:00+00:00","og_image":[{"width":3500,"height":2335,"url":"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2026\/08\/car-insurance-coverage-accident-benefits-1.jpg","type":"image\/jpeg"}],"author":"Kuvera Desk","twitter_card":"summary_large_image","twitter_creator":"@Kuvera_In","twitter_site":"@Kuvera_In","twitter_misc":{"Written by":"Kuvera Desk","Est. reading time":"4 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