Zero-depreciation cover: when is it worth the extra premium?
By Editorial Team· 30 May 2026· 4 min read
Without zero-dep, the insurer applies depreciation on plastic (50%), rubber/glass (50%), and even some metal parts during a claim. You eat the difference. With zero-dep, you get full claim value with no depreciation deduction.
The math by car age
- 0-2 years: Zero-dep is a no-brainer. Bumper, headlight, fender replacements often cost ₹15-30K each — depreciation eats half.
- 3-5 years: Still worthwhile, especially for premium models. Premium delta is recoverable in 1-2 minor claims.
- 5+ years: Diminishing returns. The IDV is already low; depreciation deduction is smaller in absolute terms.
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Editorial Team
Independent insurance writers and former product managers from leading insurers — focused on plain-English explainers, no marketing fluff.
Published 30 May 2026· 4 min read
