What is Comprehensive Insurance?

A Comprehensive insurance policy for a vehicle covers risks of fateful events like accident, fire, explosion, theft, or natural calamities. As the name goes, it is a Comprehensive policy; it covers vehicle damage personal injury, and also covers third-party liabilities. Such insurance policies can maximize cover by adding elements like Zero depreciation, No claim bonus, engine security, and other protection terms.

“In case you can’t be there to catch them, make sure you leave a safety net.”

What is Zero depreciation?

Though a comprehensive insurance policy covers all the repair costs of a vehicle incurred due to an unfortunate event, it does not include complete reimbursement. Why? As it also takes into account the regular usage of the vehicle- the depreciation while settling any insurance claims. Depreciation is a decrease in the value of an asset due to the wear and tear simply over time. For instance, the cost of vehicle parts will drop after a year as they will undergo natural wear and tear during that period. So, the final claim settlement will be after deducting the depreciation. To avoid and negate this depreciation calculation, it is best to buy a Zero depreciation add-on with the Comprehensive insurance policy itself.

Purchasing the add-on ensures the original cost of a damaged vehicle replacement and thus a better claims pay-out. Zero depreciation is also called Nil depreciation and Bumper to Bumper cover. Keep in mind that a Comprehensive policy with the Zero depreciation add-on is usually known as a Zero depreciation insurance policy.

Difference between the two - Comprehensive insurance VS Zero depreciation

Let’s understand the Zero depreciation add-on with a Comprehensive insurance policy in detail.


Comprehensive policy with Zero Depreciation Add-on

Comprehensive policy without Zero depreciation add-on


Depreciation is not considered for metal, plastic, or glass parts of the vehicle

Depreciation is considered for all these parts before considering a settlement claim


Slightly additional than just a Comprehensive plan.

Slightly lower than a Comprehensive plan with the Zero depreciation add-on

Claim Settlement

The claim settlement amount is higher as the vehicle depreciation is not considered

The claim settlement amount is lower as the vehicle depreciation amount is considered

Cost of Repair

The cost of repair covering plastic parts is generally covered by the insurer

The cost of repair covering plastic parts is not covered by the insurer

Age of the vehicle

With the Zero depreciation add-on, the depreciation rates are considered as NIL.

With age, the depreciation of vehicles keeps increasing and is not covered in the claim settlement

So, a Comprehensive policy with a Zero depreciation add-on is a great way to deal with emergencies with your vehicle and get a full claim settlement on your coverage.

Benefits of Zero depreciation on a Comprehensive insurance

A comprehensive insurance policy provides significant insurance coverage for your vehicle, saving your repair costs, avoiding penalties, and providing you complete coverage for your vehicle. However, the older a vehicle gets its value drops. But there is now a solution to cover that as well. Adding a Zero deprecation factor to your Comprehensive insurance policy ensures the value of your vehicle remains, and in case of any emergency, you are paid an entire claim settlement.

The benefits of having a Zero depreciation add-on are;

  • Better financial security with Third-party liability, own damage, and Zero depreciation cover
  • Higher claim settlement as no depreciation of vehicle included
  • The cost of adding a Zero depreciation is not high
  • All lead to better policy management for your vehicle

For such a combination policy, the insurance company will offer you the entire cost of the parts which have to be amended or replaced in case of any mishap. No depreciation is deducted from the coverage of wear and tear of any body parts of your vehicle.

“Planning is bringing the future into the present so that you can do something about it now.”

FAQs – Frequently asked questions

Let’s look at some frequent queries on Comprehensive vs Zero depreciation insurance.

Zero depreciation add-on is ideal for whom?

Customers who own new or relatively new cars should purchase this add-on to make the most of their vehicle insurance cover.

Which type of insurance is supreme for a vehicle?

Third-party insurance covers only third-party losses, while a Comprehensive insurance policy provides coverage for the insured vehicle and also the third-party losses in case of an incident. It also offers the option to select from various add-on covers for better and fuller coverage. Thus, it is advisable to get a comprehensive insurance policy for your vehicle.

Can Zero depreciation be claimed again if you already have claimed it once during the same policy period?

Yes, it is generally possible to claim up Zero depreciation to a maximum of two times during the policy period; however, it depends mainly on the insurance provider and the settlement details. Also, such details need to be verified by going through the policy particulars before buying any such insurance policy.

Is Zero depreciation cover available for old vehicles?

Usually, a Zero depreciation cover is applicable for vehicles under five years old. Still, it varies depending on the policy facets, the insurance provider, and vehicle maintenance. Some insurance companies also offer Zero depreciation add-on for vehicles under three to five years of age, while some offer this add-on to vehicles irrespective of their age as well.

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