Difference Between Zero Dep and Comprehensive Insurance

Insurance is extremely important in determining the fate of you and your valuables. This covers you, your bike, car, house, and other possessions. A scheduled insurance policy purchase ensures the stress-free use of your life and resources. So, here, we’ll go over the difference between zero dep and comprehensive insurance, as well as the benefits of each.

In India, there are numerous insurance providers, plans, and deals, so selecting the appropriate one is important. The insurance industry has a market size of approximately ₹ 7.9 trillion ($100.4 billion). With them, car insurance is one of the most major decisions to make.

The two most common options are comprehensive insurance and zero-depreciation insurance. Each policy has its own unique set of advantages, features, costs, and ratings. Let’s understand the difference between zero dep and comprehensive insurance.

100% Satisfaction = Comprehensive Insurance + Zero Depreciation

Difference Between Zero Dep and Comprehensive Insurance

Table of Contents

What is Zero Dep (Depreciation)?

Zero depreciation insurance is typically used as an add-on to comprehensive insurance policies. This coverage, sometimes known as ‘bumper-to-bumper’ insurance, is available for a small premium above the cost of the basic insurance policy.

This policy protects you in the event of an accident. It also ensures that the insurance covers the entire cost of repairs or replacements, with no depreciation. In short, zero depreciation is considered when settling a claim, including a 100% claim settlement.

Importance of Zero Dep in Vehicle Insurance

Comprehensive Insurance is a premium automobile insurance policy that allows you to select from a variety of ‘add-on’ policies or ‘benefits’. These coverages are available at a modest charge over the cost of a basic insurance policy.

There are other ‘add-on’ coverages available, including roadside assistance, engine protection, consumable coverage, and so on. So, basically, Zero Depreciation is one of the ‘Add on’ covers from which you can select a variety of mouth-watering additional insurance benefits for your vehicle!

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What is Comprehensive Insurance?

Comprehensive insurance is a ‘premium insurance’ policy for both bikes and cars. And, as the name indicates, it is the ‘full package’ that covers any damage to the bike or car, its occupants, and a ‘third party’ in the event of an accident. Comprehensive insurance typically covers

  • Theft of a vehicle covered
  • Injury to a person covered during an accident
  • Injury to a third party during an accident.
  • Vehicle damage due to an accident
  • Vehicle damage due to fire
  • Vehicle damage due to natural disasters
  • 3rd party property or vehicle damage due to an accident

Top Comprehensive Insurance Companies In India

  • ICICI Lombard
  • HDFC Ergo
  • SBI General
  • Reliance General
  • Acko General
  • IFFCO Tokio

Difference between Zero dep and Comprehensive Insurance policy

Understanding the “Difference between zero dep and comprehensive insurance” is very important to make a wise decision while buying vehicle insurance.

FeaturesZero dep insuranceComprehensive insurance
CoverageComprehensive coverage along with no depreciation of partsCovers damage to the cars, third-party vehicles, and property
PremiumHigher premium paidLower premium paid
Claim settlementNo depreciation will be considered during settlement  of claimDepreciation will be considered during settlement  of claim
Age of vehicleIt is available for new motor vehicles only (less than 5 years old)It is available for all ages of vehicles.
Add-onsFewer add-ons are available in this.Add-ons are available for specific coverage in this.
Repairing of Plastic partsNo depreciation is considered for such parts50% depreciation on such parts is considered during the claim settlement

Benefit of taking Zero Depreciation Cover

Age has its drawbacks. The same applies to your motor vehicle. Your car or bike’s worth decreases, or ‘depreciates’, as it gets older. But don’t worry, our ‘Add on’ guarantees that the value of your vehicle will remain as high as the day you purchased it!

Zero Depreciation, often known as Nil Depreciation or Bumper to Bumper Cover, excludes the ‘depreciation’ aspect from the coverage.

It basically implies that if your car or bike is damaged in an accident, no depreciation is deducted from the coverage for wear and tear on any body parts of your vehicle.

The insurance company will pay you 100% of the total cost (less the deductibles) for the body component that has to be repaired or replaced.

As we can see, we can’t truly compare comprehensive insurance to zero depreciation because zero depreciation is only an add-on that may be added to comprehensive coverage, whereas the former contains all you need to safeguard your car.

Be confident that with zero depreciation, your precious vehicle will always be 100% as good as new! That is why, Understanding the “Difference between zero dep and comprehensive insurance” is crucial for making an informed decision.


Choosing between zero depreciation and comprehensive insurance hinges on how you want vehicle damages handled. While comprehensive insurance covers various risks with depreciation factored in, zero depreciation insurance offers full coverage without considering depreciation, albeit with a higher premium. Your decision depends on factors like your vehicle’s age, budget, and your preference for a higher payout or lower premium. To make the right choice, assess your needs and consult with insurance experts for guidance on the “difference between zero dep and comprehensive insurance.”

Frequently Asked Questions (FAQ)

Yes, adding zero-depreciation to a comprehensive vehicle insurance policy is well worth it. It serves as an additional benefit. From comprehensive to ‘bumper-to-bumper,’ everything is covered.

Anyone who buys a new vehicle should have both zero-depreciation and comprehensive car insurance. This will cover all car-related damage.

No, you cannot modify your comprehensive policy to zero depreciation because zero depreciation is an add-on to fully comprehensive car coverage. And an add-on cannot be chosen instead of full coverage.

The decision between comprehensive insurance and zero-depreciation insurance is influenced by factors such as the age of your car, your budget, and whether you choose a bigger payout or a lower cost. To make an informed decision, you should thoroughly consider your needs and speak with insurance professionals.

Yes, if you already have comprehensive insurance, you can usually add zero-depreciation insurance as an add-on or rider to increase your coverage. However, you should check with your insurance provider about the exact terms and conditions for transferring or adding coverage.

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