Zero Depreciation Car Insurance Explained – Is it Worth in 2025?
Zero Depreciation Car Insurance, also known as Bumper-to-Bumper Insurance, ensures that the insurer covers the full cost of replaced car parts without applying depreciation. In simple terms, you get maximum claim benefits without deductions on part value.
✅ Benefits of Zero Depreciation Cover
- Full claim settlement without depreciation deductions.
- Higher savings during accidental repairs.
- Best suited for new cars or expensive models.
- Peace of mind as you pay minimal out-of-pocket costs.
⚙️ How Zero Depreciation Works
Normally, insurers deduct depreciation value from parts like plastic, fiber, and metal. With Zero Depreciation, you don’t have to bear this cost. The insurer pays the full approved claim for replaced parts.
📊 Depreciation Rate Without Zero Dep Cover
| Part Type | Normal Depreciation |
|---|---|
| Plastic parts | 50% |
| Fiber parts | 30% |
| Metal parts | 0-50% (depending on age) |
⚠️ Limitations of Zero Depreciation Cover
- Usually available only for cars under 5 years of age.
- Slightly higher premium cost compared to standard policy.
- Limited number of claims per policy year (e.g., 2 claims).
🔍 Is It Worth in 2025?
If you own a new car, luxury vehicle, or live in accident-prone areas, Zero Depreciation Cover is highly recommended in 2025. Though premiums are higher, the savings during claims make it a smart choice.
