Zero depreciation pays for the part of a repair bill that your standard own damage policy refuses. That refusal is a fixed schedule, not a judgement. Rubber, nylon and plastic parts are cut by 50% whatever the age of the car. Metal parts are cut on a rising scale by vehicle age.
So the add-on is worth most on a new car with plastic-heavy body panels, and worth least on an old car whose parts are cheap anyway. Roughly the first five years, then usually not.
What does the standard policy deduct from a replaced part?
| Part | Depreciation deducted | Depends on age? |
|---|---|---|
| Rubber, nylon and plastic parts, tyres, tubes, batteries, airbags | 50% | No |
| Fibre glass components | 30% | No |
| Glass parts | Nil | No |
| All other parts, vehicle up to 6 months old | Nil | Yes |
| All other parts, 6 months to 1 year | 5% | Yes |
| All other parts, 1 to 2 years | 10% | Yes |
| All other parts, 2 to 3 years | 15% | Yes |
| All other parts, 3 to 4 years | 25% | Yes |
| All other parts, 4 to 5 years | 35% | Yes |
| All other parts, 5 to 10 years | 40% | Yes |
| All other parts, over 10 years | 50% | Yes |
| Painting | 50% of the material cost; material taken as 25% of a consolidated bill | No |
This is the depreciation schedule in the standard motor own damage policy wordings filed with IRDAI, read as of 6 September 2026. Every insurer applies the same table, because it comes from the tariff wording rather than from each company.
Why does the add-on stop being worth it?
Look at the two halves of the table. The flat 50% on plastics never moves with age. The age-based column climbs, then stops. It sits at 40% from year five and reaches 50% only after ten years.
So the amount the add-on recovers stops rising. Part prices fall at the same time. An older car takes cheaper parts and insurers accept them. The gap flattens. The premium for the add-on does not.
There is a second reason. Most insurers cap the claims allowed under the add-on each year, often at one or two. After the cap, normal depreciation returns for the rest of the year.
When is zero depreciation clearly worth buying?
In the first three or four years of a new car, yes. Bumpers, lamp housings, grilles and mirror units are plastic now. One front-end knock replaces several. Half that bill is cut without the add-on.
It also pays on a car you drive in heavy traffic on bad roads. You will claim. And it pays on a car with costly parts, since 50% of a big number is a big number.
It does not pay if you would not claim for small damage anyway. A claim kills your no claim bonus. That is a real discount you already hold. Check that the depreciation you recover beats the bonus you lose.
What the add-on does not do
It does not raise your insured declared value. A total loss is still settled at IDV. The add-on changes nothing there. It touches only the depreciation on parts in a repair claim.
It does not remove the compulsory excess. You still pay that on every claim. It does not cover consumables or oils. Those need a consumables add-on. It does not cover engine damage from water. That needs an engine protect add-on.
And it applies only to your own damage cover. Third-party liability is a separate section of the policy and is untouched. If you are still deciding between covers, read third party versus comprehensive first.
What should I ask before I buy it?
- How many zero depreciation claims are allowed each policy year?
- Is the add-on restricted by vehicle age, and at what age does the insurer stop offering it?
- Does it apply at any garage, or only in the cashless network?
- Are glass, plastic and rubber all included, or are some excluded by endorsement?
- What is the compulsory excess, and does the add-on change it?
We are not publishing a premium figure for the add-on. Insurers price it against your IDV, your car model and your claim history, so a rate quoted for one car tells you nothing about another. Get the quote with and without the add-on and compare the two totals.
Frequently asked questions
Is zero depreciation cover worth it after five years?
Usually not. From year five the age-based depreciation on metal parts is capped at 40% and stays there until the car is ten years old. Part prices are also lower on an older car. The amount the add-on recovers stops growing, while its premium does not.
Does zero depreciation mean I pay nothing for a repair?
No. You still pay the compulsory excess on every claim. Consumables, oils and any labour excluded by the wording are still yours. The add-on removes only the depreciation deducted from the cost of replaced parts.
How many zero depreciation claims can I make in a year?
Most insurers cap it, commonly at one or two claims per policy year. The cap is written into the add-on wording, not into the base policy. Ask for the number before you buy, because after the cap the standard depreciation table applies again.
Does it apply to tyres and batteries?
Those are the parts the standard policy cuts hardest, at a flat 50%. Many add-on wordings exclude tyres and batteries anyway, or cover them only where other parts were also damaged. Read that clause specifically.
Sources
- Depreciation schedule for parts replaced and for painting — standard motor own damage policy wordings filed with IRDAI, including the Stand-Alone Motor Own Damage Private Car Policy — irdai.gov.in.
- Motor Vehicles Act, 1988, for the compulsory third-party section — indiacode.nic.in.
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