What Is Zero Depreciation In Car Insurance

When settling claims, the Zero Depreciation add-on insurance eliminates the depreciation value of your car’s components. Popularly known as “bumper-to-bumper” auto insurance, it provides total protection without taking into account the depreciation value of the damaged auto components. This means that, aside from any stated deductibles or other relevant fees as per the terms and conditions of the policy, you are not required to pay the depreciation value of such items and will instead get a 100 percent claim amount.


Every physical asset will eventually lose value. For instance, if your smartphone cost you £100,000 the day you bought it, its worth may have decreased to £600 within a year.

Any product that is used often will degrade over time, losing value. Your car’s value decreases with time like that of all other assets. A car’s worth declines as a result of wear and tear as well as the varying prices of its component elements, such as iron, plastic, steel, etc.

How Are Depreciation Costs Determined?

The depreciation rates for automobiles have been determined by the Insurance Regulatory and Development Authority of India (IRDAI). The tables that demonstrate how depreciation is determined may be seen below.

What Is Zero Depreciation In Car Insurance

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