Zero-depreciation insurance — also called nil-dep or bumper-to-bumper cover — is an add-on to a comprehensive car policy that pays the full cost of parts replaced in a claim, without deducting depreciation. Under a standard policy, plastic and rubber parts are depreciated at 50%, so zero-dep cover can substantially raise your claim payout on even a minor repair.
How it works
In a normal own-damage claim, the insurer knocks off depreciation on every replaced part — 50% on plastic, rubber and nylon parts, 30% on fibreglass, and an age-based slab on metal parts — and you pay the difference. With the zero-dep add-on, those deductions are waived and you pay only the compulsory deductible and consumables (unless separately covered). The add-on typically costs 15–20% extra on the own-damage premium, is generally offered for cars up to about five years old, and insurers may cap the number of zero-dep claims per year.
Why it matters when buying
Modern cars are wrapped in painted plastic — bumpers, mirrors, cladding, light housings — exactly the parts depreciated hardest. For a new car in city traffic, zero-dep is usually the single most worthwhile add-on. Dealers bundle it by default in showroom policies, but often at inflated premiums; compare the same cover online before signing, as we detail in dealer vs online car insurance.
A concrete example
A scraped bumper and broken headlamp cost ₹36,000 to replace, most of it plastic parts. A standard policy might deduct around ₹15,000 as depreciation, leaving that on you. With zero-dep, your outgo is roughly the ₹1,000–2,000 deductible.