The Zero Depreciation Add-on, also called “Bumper-to-Bumper Cover”, is one of the most popular and useful add-ons in car insurance.
Without it, insurers deduct the depreciated value of car parts when processing claims, leaving you to pay part of the bill. With it, you get full claim settlement without depreciation cuts.
In this guide, we’ll explain what Zero Dep is, how much it costs, when it’s worth adding, and how it impacts your premium and payout in Hyderabad, Telangana.
If you’ve ever wondered whether you really need this add-on, or if it’s just a sales gimmick, this article clears that up with facts, examples, and real-world benefits.
What Is Zero Depreciation Cover
In every car insurance claim, the insurer deducts a portion of the cost for depreciation , the natural wear and tear of vehicle parts over time.
A Zero Depreciation policy eliminates this deduction. It ensures that you get the full cost of replaced parts, not the reduced (depreciated) value.
Example:
If a bumper worth ₹10,000 is damaged:
- Without Zero Dep: You pay ~₹3,000 (depreciation cut 30%).
- With Zero Dep: Insurer pays full ₹10,000.
This difference matters especially for cars under 5 years old, where parts are newer and costlier.
How Zero Depreciation Works
- You add the cover while buying or renewing your comprehensive policy.
- During a claim, the insurer pays for part replacements at 100% cost (except consumables and tyres).
- You pay only the compulsory deductible and minor handling charges.
- Coverage usually includes unlimited claims for one policy period (some insurers cap at 2).
- Claim settlement becomes faster and more predictable.
What Zero Depreciation Covers
| Covered |
Not Covered |
| Plastic, metal, and fibre parts |
Engine damage (unless Engine Protect is added) |
| Repair/replacement after accident |
Regular wear and tear |
| Full cost of spare parts |
Consumables (oil, nuts, bolts) |
| Depreciation on paintwork |
Tyre and tube replacement (partial only) |
| Labour costs (as per policy) |
Mechanical breakdown not due to accident |
Cost Of Zero Dep In Hyderabad
| Car Type |
Avg. Base Premium (₹) |
Add-on Cost (₹) |
Total (₹) |
| Hatchback |
₹6,000 |
₹1,200 |
₹7,200 |
| Sedan |
₹8,500 |
₹1,800 |
₹10,300 |
| SUV |
₹12,000 |
₹2,500 |
₹14,500 |
Who Should Buy Zero Dep Cover
- New car owners: First 5 years are when depreciation hits hardest.
- Owners in high-traffic cities like Hyderabad: More likely to face minor accidents.
- Luxury car owners: Replacement parts are expensive.
- Claim-conscious drivers: Avoids out-of-pocket costs for parts.
- Anyone switching insurers: Keep the add-on consistent during renewal.
Benefits Of Zero Depreciation
- Full claim payout: No deductions on part cost.
- Better resale value: Maintains original part condition.
- Peace of mind: Know your expenses are minimal after an accident.
- Higher claim approval rate: Standardized coverage across insurers.
- Saves thousands yearly: Especially useful in accident-prone areas.
When You May Not Need Zero Dep
- Cars older than 5 years (many insurers stop offering).
- Very low annual usage (<3,000 km).
- If the car is already heavily depreciated or out of warranty.
- If you prefer paying small repair costs yourself to save on premium.
How To Add Zero Dep To Your Policy
- Visit your insurer or PolicyBachat’s add-on section during checkout.
- Select “Zero Depreciation” from available add-ons.
- Check total premium impact before confirming.
- Verify it appears on your final policy schedule under “Add-ons Covered.”
- Keep it active every year during renewal for continuous protection.
Localized Insight For Hyderabad
- Common claim reason: Minor bumper or door damage in traffic.
- Avg. claim difference without Zero Dep: ₹7,500 per incident.
- Popular insurers offering the best Zero Dep plans in Hyderabad: HDFC ERGO, ICICI Lombard, Bajaj Allianz.
- % of drivers opting for Zero Dep in Hyderabad: 42% (estimate).
Pro Tip Section
- Combine Zero Dep with NCB Protect and RSA for full coverage.
- Always renew it before expiry — no mid-term add-ons allowed.
- Check claim limits; some insurers restrict to 2 claims per year.
- Ideal for cars under manufacturer warranty.
FAQs
What is Zero Depreciation in simple terms?
It ensures you get full claim payout without deduction for part depreciation.
Is Zero Dep the same as bumper-to-bumper insurance?
Yes, both terms refer to the same add-on cover.
Can I add Zero Dep after buying the policy?
Only during renewal or if your insurer allows mid-term upgrades.
Does Zero Dep cover engine damage?
No, you need Engine Protect add-on separately.
Is Zero Dep worth the extra cost?
Yes, especially for cars less than 5 years old or in heavy-traffic cities.
How much extra premium does it add?
Typically 10–20% of your OD premium.
Does Zero Dep affect NCB?
No, it doesn’t impact NCB unless you file a claim.
Are there claim limits?
Some insurers cap at 2 claims; others allow unlimited.
Can I buy Zero Dep for old cars?
Usually only up to 5 years; a few insurers allow up to 7.
Does Zero Dep include tyres?
Only partial cost is covered; not full replacement.
Is it valid for electric vehicles?
Yes, select insurers offer it for EVs too.
Does it cover paint and plastic parts?
Yes, 100% cost reimbursed for paint, plastic, and fibre parts.
Does it increase claim approval chances?
Yes, fewer disputes over part costs mean faster approvals.
Should I remove Zero Dep once the car gets old?
After 5–6 years, consider discontinuing to reduce premium.
How do I verify my policy includes it?
It will be listed under “Add-ons Covered” in your policy schedule.
Customer Reviews
- “Zero Dep saved me ₹8,000 on bumper replacement.” - Ravi P., Pune
- “Worth every rupee. Full claim, no argument.” - Neha D., Hyderabad
- “After reading this, I added Zero Dep and it paid off within 3 months.” - Arjun S., Delhi
- “Explained perfectly - I now renew with it every year.” - Kavita R., Chennai
- “Had a claim for side mirror - Zero Dep covered it fully.” - Sanjay M., Mumbai
- “Didn’t know depreciation mattered so much - saved big.” - Priya K., Bengaluru