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Difference between Comprehensive and Zero Depreciation Insurance

Comprehensive Insurance + Zero Depreciation = 100% Satisfaction

Zero Depreciation is an ‘Add on’ cover, in other words, an added benefit that can be bought with Comprehensive Insurance. Basically, Zero Depreciation is part of Comprehensive Motor Insurance😊! Let’s explain the whole thing in detail to give you a better understanding. First let’s tell you a bit about Comprehensive Insurance, shall we😊!

What is Comprehensive Insurance?

Comprehensive Insurance is a ‘premium insurance’ policy for motor vehicles, both cars and bikes. And as the name suggests, it’s the ‘complete package’ that covers any damage to the vehicle, it’s occupants and the ‘third party’, in case of any mishap. By and large, Comprehensive Insurance covers:

  • Damage to your vehicle due to an accident
  • Personal injury during an accident
  • Theft of your vehicle
  • Damage to your vehicle due to fire
  • Damage to your vehicle due to natural disasters
  • Damage to the vehicle or property of the third party in an accident
  • Injury to the third party during an accident

Now, here’s where Zero Depreciation makes a grand entry!

Since Comprehensive Insurance is a premium motor insurance policy, you have the option to choose from various ‘Add on’ covers or ‘Benefits’. These covers can be availed at a slight premium over the basic insurance policy cost.

There are plenty of ‘Add on’ covers such as roadside assistance, engine protection cover, consumable cover etc. So, basically, Zero Depreciation is one of the ‘Add on’ covers that you can choose among a platter of mouth-watering added insurance benefits for your vehicle!

Difference between Comprehensive policy vs Zero dep Insurance policy

Comprehensive policy with Zero Dep cover

Comprehensive policy without Zero dep cover
Premium amount

Slightly higher than a normal comprehensive policy

Lower than a policy with the Zero Dep addon
Claim settlement amount

Higher as depreciation is not considered

Lower as depreciation is considered for all body parts that need to be repaired
Repairing of Plastic parts

With the Zero Dep addon, no depreciation is considered for such parts

50% depreciation on such parts are considered before paying the claim
Age of the covered car

With Zero Dep addon, the depreciation rates are considered as nil

With age, the depreciation of your car keeps increasing and will not be covered in the claim
So, a Comprehensive policy without a Zero-Depreciation is ideal if your car is brand new or you think you are going to buy a new one very soon. And a Comprehensive policy with a Zero-Depreciation add on is ideal if you do not want any bummers at the time of claims, and don’t want to spend a penny from your pocket in case of an emergency.

Benefit of taking Zero Depreciation Cover

Age comes with its drawbacks. The same applies to your vehicle. The older it gets, the more the value of your car or bike drops or ‘depreciates’. But, not to fret, this ‘Add on’ ensures that the value of your vehicle will remain as valuable as the day you bought it!

Zero Depreciation is also known as Nil Depreciation or Bumper to Bumper cover that leaves out the ‘depreciation’ factor from the coverage.

It basically means that if your car or bike gets damaged following a collision, no depreciation is subtracted from the coverage of wear and tear of any body parts of your vehicle.

The insurance company will offer you 100% of the entire cost (of course, minus the deductibles) of the body part which has to be repaired or replaced.

So, as we see we cannot really compare comprehensive insurance vs zero depreciation, as zero depreciation is only an add-on that can be taken with comprehensive cover, however, the former includes everything required to protect your car.

Rest assured with Zero Depreciation your beloved vehicle will always remain 100% as good as new!


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