Zero Depreciation Car Insurance: Is the Add-On Cover Worth the Extra Premium?

Standard car insurance claims factor in depreciation on parts, meaning you rarely get the full repair cost reimbursed. Zero depreciation cover changes that, but it comes at a price worth understanding before you add it.

What is Zero Depreciation Cover?

Under a regular own-damage claim, the insurer deducts depreciation on plastic, fibre, and metal parts before settling, often 30-50% on certain components. A zero depreciation (or “bumper-to-bumper”) add-on removes this deduction, so you get the full claim amount for repairs or part replacement, within policy limits.

What It Covers (and Doesn’t)

Zero depreciation cover applies to accidental damage claims and typically doesn’t extend to standalone wear-and-tear, engine damage from waterlogging (that needs a separate engine protection add-on), or normal maintenance. Most insurers also cap the number of zero-depreciation claims allowed per policy year.

How Much Extra Does It Cost?

The add-on typically increases your own-damage premium by a noticeable but manageable percentage, the exact figure depends on your car’s make, model and age. For a new or mid-range car, the extra cost is usually justified by even a single significant repair claim.

Who Should Buy It?

Zero depreciation cover makes the most sense for cars less than 5 years old, especially in cities with heavy traffic or higher accident rates. For older vehicles nearing the end of their typical ownership period, the standard policy without this add-on is often more cost-effective.

We compare zero depreciation and other add-ons across insurers so you don’t overpay, get a quote on our Insurance Advisory page.

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