Car Insurance Policy

View the complete list of benefits that come along with a zero depreciation car insurance policy

Zero depreciation, also known as Nil depreciation or Bumper to Bumper car insurance, is a car insurance policy that leaves out the depreciation factor from the coverage, thus giving you complete cover. It means that if your car gets damaged following a collision, no depreciation is subtracted from the coverage of wearing out of any body parts of the car (excluding tyres and batteries). The insurance company will pay out the entire cost of the body part getting replaced. *

* Standard T&C Apply

Bajaj Allianz General Insurance Company’s policies provide zero depreciation car insurance with 100% coverage for all fibre, rubber, and metal parts, without deduction of depreciation. It does not cover engine damage due to water ingression or oil leakage. Any mechanical breakdown, oil change or consumables are also not covered in this policy. The policy comes with a limit on the number of claims you can put in a year. The zero depreciation cover offers complete coverage for the repair/replacement of the following parts of your car: fibre, rubber, metal, glass and plastic parts. *

* Standard T&C Apply

Zero Depreciation Car Insurance

Benefits of Zero Depreciation

A zero depreciation cover saves you from paying a hefty amount towards the repair/replacement of the parts of your car, following an accident, which you would have to pay otherwise. Without a zero depreciation add-on, the financial compensation you receive is arrived at after deducting the depreciation value of the car. This means that you receive a reduced claim amount. This add-on helps cover the gap between the actual cost of the repair and the deducted claim amount. *

  • With a zero depreciation cover, you get a maximum settlement of your claim amount. You just have to bear the cost of mandatory deduction. *
  • A zero depreciation cover provides coverage to your car over and above that provided by your existing car insurance policy. *
  • A nil depreciation cover helps to increase your savings when you file a car insurance claim. *

* Standard T&C Apply

Factors to consider before buying zero depreciation car insurance cover

  • You should check the exclusions of the zero depreciation cover before you decide to buy it. Some of the generic exclusions are: *
  • Engine damage due to water ingression or oil leakage *
  • Mechanical breakdown *
  • Damage caused because of common wear & tear *
  • Damage to uninsured items *
  • Complete/total loss of the vehicle *
  • You should check the number of times you can make a car insurance claim after purchasing the zero depreciation cover. Most of the companies do not allow you to make more than 2 claims in your policy year if you have opted for the zero depreciation cover along with your normal car insurance policy. *

* Standard T&C Apply

Bajaj Allianz Insurance

Why you should get a zero depreciation cover

  • Your car is new (less than 5 years of age)

The depreciation value of a car increases rapidly in the first five years. After the first six months, the depreciation level is already 5%. By the 3rd year, the depreciation level increases to 30%, reaching a staggering 50% in the car’s fifth year. Hence, buying a zero depreciation add-on, at least for the first few years, can prove to be advantageous. *

  • Your car is a luxury car

Luxury cars incur heavy repair costs. A zero depreciation add-on can be a helpful aid in dealing with these high costs. *

  • You live in an accident-prone area

The likelihood of you making claims is higher if you live in an area that is prone to accidents, whether manmade or natural. However, receiving a reduced claim amount due to deduction of depreciation each time may not seem financially wise, since you are not getting recompensated completely. This can be avoided with the help of a zero depreciation car insurance add-on. You have very expensive spare parts fitted in your car. *

* Standard T&C Apply

Repair of expensive spare parts can be heavy on your pockets. Even sourcing such spare parts may prove to be difficult. However, this difficulty can be eased when one receives the full claim amount, with no consideration of the depreciation.

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