Zero Depreciation Insurance

Zero Depreciation or Zero Dep. Insurance also called Nil Depreciation is the costliest & most beneficial policy available as on date.  Here, additional premium is demanded over & above the premium charged for vehicle value.

This policy includes Comprehensive as well as Third Party Insurance.  It rather is a extension of Comprehensive Insurance as it is an optional add-on, which can be opted to convert Comprehensive Policy to Zero Depreciation Policy.  This policy compensates Third Party expenses as well as the repairing cost of the damaged vehicle – that too without any deductions for depreciation whatsoever.

It is available for new vehicles only for upto 3 years by most of the companies & 5 years by some companies.  It does offers different options like :

  1. Normal Zero Dep. – Its the cheapest zero dep. version which covers damages to car body.
  2. Engine Zero Dep. – A bit costly as it additionally covers engine & engine fluids in addition to the above.
  3. Consumable Zero Dep. – Its the costliest version with maximum benefits & covering each & every part of the vehicle, even tyres too.

Additional benefits of Zero Dep. Policy are as follows :

  1. Emergency Transport & Hotel Expenses.
  2. Loss of Personal Belonging.
  3. Key Replacement.
  4. Roadside Assistance Cover (Offered by some, while some charge for it).

Other benefits may vary from company to company.


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