Debunking Six Common Misunderstandings About the Zero Depreciation Add-on

Automobile insurance has a vast canvas of possibilities when it comes to customisation. It has various benefits and different types of policies like own damage car insurance and comprehensive insurance, car insurance, bike insurance, electronic vehicle insurance, add-ons, and coverage options.

It might be a little too vast, and maybe that is why there are many pre-consumed notions about the whole concept. It seems very distant and difficult.

One of the concepts that feels a tad bit technical to people is zero depreciation add-on cover. There are a lot of misconceptions about this cover due to the notions people carry about it.

But rest assured, and have faith when we say that it is not very complicated once you understand the concepts. Let us talk about this concept in detail and debunk a few misconceptions about it.

 Common Misconceptions About Zero Depreciation Add-On Cover

  • Zero Depreciation is Only For Cars

With leading insurers like Tata AIG, Zero dep insurance cover is available for cars as well as for bikes. This cover is not exclusively for cars. There is no apparent reason to associate zero depreciation coverage with four wheeler insurance only, but it has become a common notion nowadays. You can add this cover to your comprehensive car/bike plan at the time of purchase or renewal of the policy.

  • Wouldn’t need to pay Deductibles

It is a common belief that the deductibles are covered under the zero depreciation add-on cover. Deductibles are the amount that you have agreed to pay at the time of raising a claim.

It is exclusive of the depreciation cover, and you will have to pay it even if you add the benefit of zero dep car insurance.

  • Easily Available for Old Vehicles

It is a myth that zero depreciation is available for older vehicles. If your car/bike is above the age of 5 years, most insurance companies will deny you the rider.

This is a simple calculation. The car is already depreciated at 5 years of age. Covering something so obvious is risky and not profitable. Hence, this add-on cover is not available for old vehicles.

  • One Policyholder Can Only Claim Once

This is a misconception! Sure, there is a limit to the number of claims one policyholder can make, but it is not one per person. It is usually twice in a policy tenure in most of the insurance companies.

Since the company is taking up a good amount of risk by providing zero depreciation cover, it restrains from offering multiple claims on it.

  • Consumables Expenses are Covered

Consumables like nuts and bolts used by your garage will not be included in the cover provided for a zero-depreciation add-on. You must purchase an add-on zero depreciation with consumables cover. That way, you might receive the cover for consumables.

  • Covers All Wear And Tear

The belief that zero depreciation add-on cover has no exclusions is a misconception. There are a few things you must know that are excluded from this cover.

It is always better to know such small details before you buy zero-depreciation car insurance or bike insurance.

  1. Damage by mechanical blunder
  2. Wear-And-Tear damage
  3. Damage to uninsured parts
  4. Total loss
  • Not Suitable For Safe Drivers

An accident is not a one-sided event. It might happen due to external factors or other drivers. Even if one is a safe driver, there is no way that person is a hundred per cent safe out on the road. Hence, a zero-depreciation cover in car insurance and bike insurance is a safe game.


Zero-depreciation add-on is an optional cover you can opt for while purchasing a comprehensive motor policy. The cover will help in increasing the sum assured.

In this case, even if your premium increases, you should choose this cover. It is an important addition to your policy, which will be proven to be beneficial in the long run.

 Frequently Asked Questions (FAQs)

  • What is a zero depreciation add-on in car insurance?

A zero depreciation add-on is a cover that benefits you by negating the effect of depreciation on your vehicle insurance policy. It is a provision that helps you by deducting the depreciation cost at the time of an accident so that the policy claim is concentrated on the damage alone.

  • Is zero depreciation insurance worth it?

Zero dep insurance is definitely worth your extra premium payment. It provides you with benefits like enhanced coverage, reduced additional expenses, peace of mind, compensation, and much more.

  • Who should buy zero DEP insurance?

If your vehicle is not old and you want to save your money while protecting your automobile at the same time, the zero depreciation add-on cover is for you.

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