Mon. Jun 10th, 2024
car insurance

Zero depreciation cover, or nil depreciation, is an optional feature of stand-alone own-damage policies and comprehensive car insurance policies that enable you to claim the total cost of replacing damaged car parts in the event of an accident. The damaged parts’ depreciation value will not lower the claim amount as part of this coverage.

Selecting car insurance with zero depreciation is usually a smart move. It enables you to get the most out of your car insurance policy by offering the highest possible payout at the time of a claim. When exploringinto car insurance, understanding zero depreciation, especially the details of Bajaj Allianz car insurance, becomes essential for comprehensive coverage. Claims are subject to terms and conditions set forth under the motor insurance policy.

What Advantages Does The Zero Depreciation Add-On Offer For Car Insurance?

Higher Payout For Claims

You may receive the replacement cost based on the depreciated value at the time of claim if you do not have zero depreciation. However, zero depreciation coverage does not account for any depreciation when settling claims.

Increased Savings

The higher payouts in depreciation cover mean you won’t have to break the bank to pay for the repaired parts.


The majority of people think that having zero depreciation is expensive. Nevertheless, you won’t find that it strains your budget when you compare the costs and benefits.

Peace Of Mind

You can get coverage for unintentional damages to your car without reducing its value when you purchase car insurance with zero depreciation add-on. You can drive your car worry-free as a consequence.

No Reduction In Claim Amount

Zero depreciation coverage ensures no reduction in claim amount due to depreciation, offering higher and more accurate reimbursements for damages, providing financial protection and peace of mind.

Should You Choose Zero Depreciation Car Insurance?

  • Are you a nervous driver, or are your hands just getting used to the steering wheel? Think about purchasing a cover with no depreciation.
  • Purchasing a zero-depreciation cover would be wise if you enjoy taking long drives in your vehicle.
  • Consider purchasing a zero-dep add-on for your car insurance if you live in a region that frequently experiences accidents or natural disasters.
  • If you’re planning to renew Bajaj Allianz car insurance, understanding zero depreciation can be a valuable aspect of your policy.*


It is applicable for replacement and repairs if:

  • Damage Resulting From Man-Made And Natural Disasters: A zero dep add-on may assist you if your vehicle sustains damage from a landslide, earthquake, flood, terrorist attack, riot, or vandalism. Claims are subject to terms and conditions set forth under the motor insurance policy. *
  • Accidental Damage: A zero depreciation add-on may cover you if your vehicle is damaged in an accident. Claims are subject to terms and conditions set forth under the motor insurance policy. *
  • Damage During Transit: If during the moving process, your vehicle is damaged in transit, your insurance provider may repair it under zero dep. Claims are subject to terms and conditions set forth under the motor insurance policy. *


If you file a claim for car damage in such situations, zero dep will not apply.

  • Driving without a license.
  • Driving while under the influence of alcohol or drugs.
  • Normal ageing or malfunctioning machinery.
  • Issues with the coolant, engine oil, clutch oil, etc.
  • Total loss for your vehicle.
  • The cost of repairs matching or surpassing the insured value.
  • Making more than two claims under this add-on in a calendar year.

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*Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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