Under a standard car insurance policy with own damage cover, depreciation is usually deducted from the value of parts replaced after an insured accident. Zero depreciation car insurance is an optional add-on* that helps reduce these depreciation deductions on eligible parts during an approved own damage claim, subject to the policy terms and conditions. You may also come across terms like zero dep insurance or zero dep car insurance. They all refer to the same type of cover.

This add-on* does not increase your policy coverage or cover new types of risks. Instead, it changes how depreciation is applied when an eligible own damage claim is settled, which can help reduce your out-of-pocket repair costs.

Since it is an optional add-on*, zero depreciation car insurance is available at an additional premium and must be included in your policy schedule. It works alongside your own damage cover.

The standard policy wording applies different depreciation rates to different materials:

For other parts, the standard rate increases with vehicle age:

Let's understand this with an example.

Suppose an eligible plastic part on your car costs ₹12,000 to replace. Under a standard car insurance policy, if 50% depreciation applies, ₹6,000 would typically be deducted from your claim amount. If you have Zero depreciation car insurance and the claim meets the applicable policy terms and conditions, this depreciation deduction may also be covered, helping reduce your out-of-pocket repair costs.

To know how zero depreciation car insurance differs from a comprehensive car insurance policy, the table below provides a simple side-by-side comparison.

Choosing zero depreciation car insurance can offer several advantages, including:

• Lower Depreciation Deductions: Helps reduce depreciation deductions on eligible parts during approved own damage claims.
• Reduced Out-of-Pocket Expenses: You may have to pay less towards eligible repair costs.
• Better Claim Value: Since depreciation on eligible parts is reduced, the payable claim amount may be higher than under a standard policy.
• Suitable for Newer Cars: It is especially useful for newer vehicles where repair costs can be relatively high.
• Greater Financial Convenience: Helps you manage unexpected repair expenses with fewer depreciation-related deductions.

A zero depreciation car insurance add-on* can be a good choice if you want to reduce depreciation-related deductions during eligible claims.

It can be suitable for:

• Owners of newly purchased cars.
• People who own premium or luxury cars with expensive spare parts.
• Drivers who frequently travel in busy cities or accident-prone areas.
• Individuals who are looking to reduce their out-of-pocket repair expenses after an insured accident.

Since this is an optional add-on*, it is available at an additional premium and is subject to the policy terms and conditions.

Depreciation represents the reduction in the value of vehicle parts due to age and usage. During an own damage claim under a standard car insurance policy, the applicable depreciation is deducted before the claim amount is calculated.

The depreciation amount generally depends on:

• The age of your car
• The type of part being replaced, such as plastic, rubber, glass, fibre, or metal
• The depreciation rates specified under the applicable policy guidelines

For eligible claims under zero depreciation car insurance, depreciation deductions on covered parts may be reduced or waived.

Inclusions

Depending on the policy terms and conditions, zero depreciation car insurance can help reduce depreciation deductions for repairs arising from:

• Accidental damage.
• Fire and explosion.
• Natural calamities such as floods, cyclones, storms, and earthquakes.
• Man-made events such as riots, strikes, or vandalism.
• Damage occurring while the vehicle is being transported, where covered under the policy.

Exclusions

This add-on* generally does not apply if the loss occurs due to:

• Driving without a valid driving licence.
• Driving under the influence of alcohol or drugs.
• Normal wear and tear or mechanical breakdown.
• Intentional or wilful damage.
• Consequential loss caused by continuing to drive a damaged vehicle.
• Participation in illegal racing or speed testing.
• Using the vehicle for purposes not covered under the policy.
• Damage occurring outside the geographical limits specified in the policy.

Note: It is important to refer to the policy wording for the complete list of exclusions.

The premium for zero depreciation car insurance depends on several factors, including:

• The age of your vehicle.
• The make, model, and variant of the car.
• The city or location where the vehicle is registered.
• Your previous claim history.
• Any additional add-ons* selected with the policy.

Buying zero depreciation car insurance online is simple. One can follow the steps mentioned below to buy zero depreciation car insurance from SBI General Insurance.

1. Visit the SBI General Insurance website or mobile app and enter your vehicle details.
2. Choose a comprehensive car insurance policy and add the Zero Depreciation Cover, if eligible.
3. Review your policy details, complete the online payment, and receive your policy documents via email.

Renewing your policy is just as easy. Follow the steps mentioned below to renew your policy:

1. Log in to the insurer’s website or mobile app.
2. Select the policy you wish to renew.
3. Review your coverage and update your details if required.
4. Complete the payment online and receive your renewed policy electronically.

With SBI General Insurance, you can enhance your comprehensive car insurance policy by opting for a Zero Depreciation Cover at an additional premium. This add-on* helps reduce depreciation-related deductions on eligible parts during approved own damage claims.

In addition to this benefit, SBI General Insurance offers a smooth claims process, 24x7 customer support, and access to 9,277+ network garages across India. Whether you're buying a new policy or renewing an existing one, the Zero Depreciation Cover can be a valuable addition for eligible vehicles, helping you manage repair costs more effectively after an insured accident.

A zero depreciation car insurance add-on* can help you manage repair expenses more effectively by reducing depreciation deductions on eligible parts. Understanding how it works is important as it helps you make a more informed insurance decision.