When buying car insurance, many policyholders choose a basic comprehensive plan to keep the premium low. However, standard policies apply high depreciation rates on replaced parts during accident repairs. Skipping the Zero Depreciation add-on can lead to shocking out-of-pocket bills at the workshop.
The Bumper and Headlight Collision
A car owner driving a premium sedan collided with a stationary vehicle at a traffic light. The sedan's plastic front bumper, fiber-glass grille, and LED headlight assembly were completely smashed. The authorized service center estimated the total repair bill at ₹1.1 Lakhs, out of which ₹90,000 was the cost of the new plastic and glass parts.
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The Depreciation Deductions
Since the owner had skipped the Zero Depreciation add-on to save ₹3,200 on premium, the insurer applied standard depreciation rules: 50% deduction on all plastic and rubber parts (bumper) and 30% deduction on fiber-glass parts. The owner was forced to pay ₹45,000 out of pocket at the time of delivery, while the insurer paid the remaining ₹65,000. Having zero-dep cover would have saved the owner ₹45,000.
- Zero Depreciation add-on cover is highly recommended for all cars less than 5 years old.
- Check the maximum number of zero-dep claims allowed under your policy term (usually 1 or 2 claims per year).
- Ensure the policy compulsory deductible (₹1,000 or ₹2,000) is the only amount you pay during a claim.
- Compare quotes online to see if zero-dep add-ons are bundled with roadside assistance and engine protect.
