Comprehensive Insurance Vs Zero Depreciation for Cars

For a majority of individuals in our nation, having a automotive is a dream come true. Placing your hard-earned cash in an environment friendly and efficient technique of transport offers you psychological satisfaction as properly. Nonetheless, shopping for a automotive comes with a way of accountability as properly, selecting the proper of automotive insurance coverage is one in every of them.

Whenever you purchase a brand new automotive you would need to make a comparability between complete insurance coverage vs zero depreciation which will be finished solely when the distinction between complete and 0 depreciation insurance coverage. As it’s possible you’ll already know complete automotive insurance coverage, because the identify suggests, presents wider protection. It covers third-party damages together with the damages suffered by your personal automotive.

What is Comprehensive Insurance?

Complete Insurance is a ‘superior protection’ Policy for vehicles, the two vehicles and 4 wheeler. Also as the name recommends, it’s the complete cover of any harm to the vehicle. Comprehensive Insurance covers:

  • Harm to your vehicle because of a mishap
  • Individual injury during a mishap
  • Robbery of your vehicle
  • Harm to your vehicle because of fire
  • Harm to your vehicle because of catastrophic events
  • Harm to the vehicle or property of the outsider in a mishap
  • Injury to the outsider during a mishap

What is zero depreciation?

You probably have been desirous to know what zero depreciation is and why it’s important, right here’s your reply. Depreciation principally is the deterioration of the worth of your automotive or a  product attributable to common use, it is usually known as put on and tear. Allow us to see this instance, suppose you’ve bought a four-wheeler value INR 10 lakhs. Two years later should you want to promote it, clearly its worth won’t be the identical. This lower is due to depreciation. The older the product, the upper the depreciation.

Subsequently, depreciation will all the time have a direct impact on the Insured Declared Worth, IDV of the automobile. Let’s see the depreciation chart:


Age of the Car Charge of Depreciation 
Inside 6 months 5%
6 months – 1 yr 15%
1 yr – 2 years 20%
2 years – 3 years 30%
3 years – 4 years 40%
4 years – 5 years 50%

What’s the distinction between complete and 0 depreciation insurance coverage?

First issues first, let’s do a comparability of complete vs zero dep. Complete insurance coverage is a form of insurance coverage, whereas zero depreciation is an non-obligatory cowl that you would be able to go for by paying an additional quantity. Whenever you buy a brand new automotive, for wider protection you’ll be able to go for a complete car insurance policy after which choose Zero-Depreciation Car insurance coverage as an add-on profit.

In a complete insurance coverage coverage, you might be supplied with a canopy in opposition to virtually each form of unpredictable accident, each pure and artifical, that causes harm to your automobile. Alternatively, zero dep is part of a complete coverage or a standalone personal harm coverage that may cowl the loss attributable to depreciation. It will not cowl the price of unintentional repairs.

One other distinction between zero dep and complete insurance coverage is that complete insurance coverage will be for an outdated automobile additionally, whereas zero dep will be bought for automobiles which can be lower than 5 years outdated.


As a driver, you’ll want to watch out about lots of issues. A vital side of following guidelines is automotive insurance coverage. Although there are numerous automotive insurance coverage corporations and plans, choosing the one which fits you will be essential. Understanding the distinction between complete and 0 depreciation insurance coverage will certainly show you how to in making the best resolution.

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