How is Own Damage Different from Zero Depreciation Car Insurance?

Before purchasing a car insurance policy, you must be aware of the extent of coverage you want for your car. In this context, two terms 'own damage' and 'zero depreciation' are used most commonly. Let us know everything about own damage & zero depreciation car insurance and how they are different from each other.

Read more


third-party-rates

Third-party rates expected to increase* soon. Renew today!

third-party-rates

Third-party rates expected to increase* soon. Renew today!

Get Car Insurance starting at only ₹2072/year*
Save upto 85%*
Chose from 20+ insurers
51 lakh+ Cars insured
Processing
Other options
Top Plans
Cashless Garages
253
Plan type
Comprehensive
Starting from
₹ 2,727
Check premium
Claim Advantage
Self-Video Claims
Reimbursement Within 7 Working Days For Non-Cashless
Cashless Garages
268
Plan type
Comprehensive
Starting from
₹ 2,757
Check premium
Claim Advantage
Self-Video Claims
Reimbursement Within 7 Working Days For Non-Cashless
Cashless Garages
1024
Plan type
Comprehensive
Starting from
₹ 2,868
Check premium
Claim Advantage
Spot Claims Upto Rs. 30,000
Repair service at select cashless garages
See more plans

Above-mentioned prices are for a 7-year-old Maruti WAGON R AVANCE LXI (998 CC) registered in Gurgaon and 15 days before expiry of previous policy

What is Own Damage Car Insurance?

An own-damage car insurance policy covers a car owner against own damages sustained by the insured car due to unforeseen events like a road accident, natural calamities, strikes, riots, theft, etc. It can be purchased along with a third-party liability car policy to cover the own damages sustained by the insured car.

Purchasing third party car insurance is compulsory as per the motor laws of India. Own damage car insurance enables you to separately purchase this cover to get compensation for the car’s own damages, provided you already have a third party liability policy.

As per the IRDAI regulations, every car insurance company has started selling a bundled car policy that offers 3-year third party plus one-year own damage cover. This bundled motor insurance policy has been made mandatory for every car purchased after 1st September 2018.

An own damage cover can also be availed under a comprehensive car insurance policy. A comprehensive motor insurance policy offers a wider coverage by covering both third party liabilities and own damages to the insured car.

What is Zero Depreciation Car Insurance?

A zero depreciation car insurance or a zero dep cover is basically an additional cover that a policyholder can purchase along with his/her comprehensive motor insurance plan. Also known as nil depreciation cover, it provides coverage for depreciation borne by the insured car and its parts over the years.

Usually, a standard motor insurance policy excludes general wear and tear of the car i.e. depreciation sustained by the insured car over the years. However, by purchasing a zero dep add-on cover, you can overcome this exclusion and get the depreciation covered by the insurance company at the time of claim settlement. In such a scenario, the insurance company will include the amount of depreciation of the car and its parts in the claim amount.

The amount of depreciation on different car parts is calculated based on the rates proposed by the IRDAI, which are as follows:

  • On rubber, nylon, plastic parts, and batteries: 50%
  • On fiberglass components: 30%
  • On wooden parts: 5% in the first year, 10% in the second year, and so on

A zero dep add-on can be purchased by paying some extra premium amount over the existing car insurance price. Besides, this add-on cover can only be availed with own-damage vehicle insurance or a comprehensive motor insurance cover and not under third party insurance.

What is the Difference Between a Zero Dep and Own Damage Car Insurance?

A zero dep add-on cover and an own-damage car insurance policy are two different terms used in a motor insurance policy. However, both of them provide completely different benefits.

A zero depreciation is an additional cover that policyholders can purchase along with their own damage or a comprehensive car policy only. This add-on can be purchased by paying some extra premium amount to cover the depreciation sustained by the insured car as per its age.

On the other hand, you can get own damage cover separately for your car only if you have an existing third party liability insurance cover. An own damage cover is also offered under a comprehensive car insurance policy as it provides coverage for both third party liabilities and the car’s own damages. It depends on you whether you want to add a zero depreciation cover with your vehicle insurance policy or not.

You May Also Read: Everything About Third-Party Liability Insurance

Own Damage Insurance Vs Own Damage Insurance with Zero Depreciation Cover

Let us understand the difference between own damage insurance and own damage insurance with zero depreciation cover more clearly with the help of the following table:

Point of Difference Own Damage with Zero Dep Cover Own Damages Without Zero Depreciation Cover
Car Insurance Premium Slightly higher than normal Lower than that of a car policy with zero dep add-on cover
Inclusions Includes the depreciation borne by the insured car and its parts Does not include the depreciation borne by the insured car
Claim Amount Higher claim amount as the depreciation amount is added Lower claim amount as the depreciation is not included

Wrapping Up!

Own-damage car insurance may or may not include a zero depreciation add-on under its coverage as it completely depends on the policyholder. If your car is 5 years or older than 5 years, you can consider purchasing a zero depreciation along with your car insurance policy. You may be paying a higher premium initially but your car will be covered against any depreciation sustained by it as per its age.

You can also separately compare the cost of nil depreciation add-on covers by comparing multiple car insurance plans on Policybazaar.com.

Written By: PolicyBazaar - Updated: 19 April 2022
You May Also Like
  • Transferring Car Insurance from One Person to Another

    Transferring Car Insurance from One Person to Another An integral part of selling a car, for both the buyer and the seller, is ensuring a successful car insurance transfer to the new owner. But sadly, most people have...

    read more
  • 9 Secrets That Your Motor Insurance Provider Won’t Tell You

    9 Secrets That Your Motor Insurance Provider Won’t Tell You Due to the dangerous driving conditions, it is compulsory to have third party insurance for every vehicle plying on Indian roads. It ensures the overall saf...

    read more
  • Money Saving Advice for All Car Owners

    Money Saving Advice for All Car Owners After a dream home, a dream car is your second-largest purchase that you make in your lifetime. But the expense does not cease when you drive off the car dealer's lot. Read mor...

    read more
  • Difference Between Comprehensive Insurance and Third Party Insurance

    Difference Between Comprehensive Insurance and Third Party Insurance Comprehensive insurance is insurance coverage that pays for the repair or replacement of vehicle damages resulting from an incident. Comprehensive ca...

    read more
  • Types of Motor Insurance

    Types of Motor Insurance The word Motor broadly covers a lot of classes of vehicles plying on the roads. These may be two-wheelers like scooters and motorbikes, three-wheelers or four wheelers like private cars, jeeps, ...

    read more

Find similar car insurance quotes by body type

Hatchback Sedan SUV MUV
insurance-ka-superhero
Search
Car insurance save up to 85
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Calculate your car IDV
IDV of your vehicle
Calculate IDV
Calculate Again

Note: This is your car’s recommended IDV as per IRDAI’s depreciation guidelines.asdfsad However, insurance companies allow you to modify this IDV within a certain range (this range varies from insurer to insurer). Higher the IDV, higher the premium you pay.

Policybazaar lets you compare premium prices from 20+ Insurers!
Compare Prices

Why buy from Policybazaar?

  • 24x7 Claims Assistance
    NEW
  • Cashless Assurance
  • 3-Day Repair Assurance
  • Free Pickup & Drop
  • Self Video Claims
  • Windshield Claims At Home
View Plans

Car insurance articles

Recent Articles
Popular Articles
Can You Claim Car Insurance with a Temporary Registration Number?

19 May 2022

When you buy a car, you get a temporary vehicle registration...
Read more
KP in Car Insurance

17 May 2022

KP in car insurance refers to the Key Protect add-on cover that...
Read more
Manual versus Automatic Car Insurance - Effect on Insurance Premium

12 May 2022

When it comes to transmission systems in cars, there are two...
Read more
Everything You Need to Know About Private Car Insurance

09 May 2022

A car insurance policy is not just a mandatory requirement but...
Read more
All You Need to Know About CNG Car Insurance

06 May 2022

If you are planning to get a CNG kit fitted in your car or...
Read more
Car Depreciation Calculator
If you are looking to purchase a new car or planning to sell your existing one, it is important to know how...
Read more
Transferring Car Insurance from One Person to Another
An integral part of selling a car, for both the buyer and the seller, is ensuring a successful car insurance...
Read more
Check Car Insurance Status Online on Parivahan Sewa/ RTO?
In India, buying car insurance is a compulsion for every car owner. It doesn’t matter if you are an excellent...
Read more
Getting Your Duplicate Car Insurance Policy is Easy-Here’s How!
Losing important documents, such as your car insurance documents, can be daunting. In such a state of affairs, the...
Read more
Multiple Ways To Check Your Car Insurance Status Online
All insurance companies in India now have a digital presence. It not only makes it easier to buy insurance online...
Read more