When you claim on a standard car policy, the insurer does not pay the full cost of new parts. It deducts depreciation, because the old part had already aged.
How much is deducted? Typical depreciation on parts under a standard policy: - Rubber, nylon and plastic parts, tyres and batteries: 50% - Fibre glass parts: 30% - Metal parts: from 0% up to 50%, depending on the car’s age
So if a bumper costs ₹12,000, you may pay about half of it yourself.
What zero depreciation changes With a zero depreciation (also called "nil dep" or "bumper to bumper") add-on, the insurer pays the full cost of replaced parts, subject to the policy terms. You still pay the compulsory deductible.
Is it worth it? - Usually yes for cars up to 5 years old, and for anyone who parks on busy streets or drives daily in traffic. - It costs extra, and most insurers limit the number of zero-dep claims per year. - Many insurers do not offer it for cars older than 5 to 7 years.
Our advice Compare the extra premium with a single bumper or door replacement. For a newer car, one claim usually pays for the add-on. Ask us to show you the difference across insurers before your next renewal.
Need advice for your situation?
This guide is general information, not advice for a specific policy. Policy terms vary by insurer. Talk to an advisor for free.
