If you have ever bought or renewed car insurance, you have probably heard of zero-dep car insurance, also known as a “nil depreciation cover.” It is one of the most popular, but also one of the most misunderstood, add-ons among car owners today.
Some people think it removes all costs during claims; others assume it is meant only for expensive cars. The truth lies somewhere between. Let us clear up some of the most common myths and understand what this add-on really offers.
Common Myths and Facts About Zero Depreciation Car Insurance
Myth 1: Zero Depreciation Means No Costs During Claims
Many car owners believe that once they have a zero depreciation add-on, they will not have to pay anything out of the pocket after an accident. That is not entirely true.
Even with this cover, a car insurance policy may still not include certain expenses like consumables, towing charges or mandatory deductibles. Zero depreciation ensures you will get the full claim amount for replaced parts without factoring in the age-related depreciation. It is a great way to avoid losing money due to your car’s wear and tear, but it does not make your policy completely cash-free.
Myth 2: It is Too Expensive and Not Worth It
Another common misconception is that zero depreciation makes your policy unaffordable. While it does slightly increase the premium, it also saves you from paying thousands during repairs.
For instance, if your bumper or door panel needs replacement, a standard policy will deduct depreciation before settling the claim. With zero depreciation, the insurer pays for the full cost of new parts, which often outweighs the extra premium.
Myth 3: All Insurers Offer the Same Coverage
Not all zero-dep car insurance covers are created equal. Terms, conditions and claim limits vary with insurers. Some policies restrict eligibility to cars under five years old, while others may limit it to only three years. Certain insurers also limit the number of times you can claim zero-dep benefits within a year. Always read the fine print before you buy or renew your policy to understand exactly what is included.
Myth 4: It Covers Regular Maintenance
Some car owners confuse zero depreciation with a maintenance plan. That is not the case. This cover applies only when you file a claim for accidental damage, not for routine servicing or wear-and-tear issues like oil changes, brake pads or filters.
Regular maintenance remains your responsibility, while zero dep ensures you get full value for replaced parts after an accident.
Myth 5: You Can Add Zero Depreciation Anytime
Many people assume they can opt for zero depreciation cover at any point during the year, but that’s not how it works. This add-on can only be added when you buy or renew your policy, not mid-term.
If you miss including it during renewal, you’ll need to wait until the next policy cycle. That is why it is important to review your coverage carefully every year and make sure the add-ons you really need, like zero dep, are included from the start.
Conclusion
Zero-dep car insurance is not just a fancy add-on. It is a smart financial decision for anyone who wants to get the most out of their coverage. It helps you avoid unexpected repair costs and keeps your car’s value protected, especially in those stressful moments after an accident.
When choosing or renewing your car insurance policy, take time to look beyond the myths and check what truly meets your needs. Trusted insurers like TATA AIG offer clear, reliable zero depreciation coverage options that make it easy to protect your car’s worth with comprehensive options.
Santosh Kumar is a Professional SEO and Blogger, With the help of this blog he is trying to share top 10 lists, facts, entertainment news from India and all around the world.
