Zero depreciation: worth it, or an upsell?
On a newer car it usually pays for itself in one claim. On an older one it often does not.
Without zero depreciation, the insurer deducts depreciation on the parts replaced. Plastic and rubber parts attract the steepest deduction, and modern vehicles are full of both.
Where the money goes
Bumpers, lamps, mirrors, trims and body panels are the parts most often replaced after an urban collision, and precisely the parts where depreciation bites hardest. Zero depreciation removes that deduction, subject to the number of claims the add-on allows in a year.
When it is worth buying
- Vehicle roughly up to five years old
- City driving with a realistic chance of minor damage
- Expensive body panels or imported parts
When it is not
- Older vehicle where the add-on premium approaches the likely claim
- Very low usage and secure parking
Add-ons worth more than most buyers realise
- Engine protection - water ingress damage is excluded from the base policy, and is common in Mumbai and Thane during the monsoon
- Consumables - oils, coolant, nuts and bolts add up on any workshop bill
- Roadside assistance - inexpensive, and useful at the moment it is needed
Add-on availability, claim limits and pricing vary by insurer and by vehicle.