comprehensive and zero depreciation insurance

For a majority of people in our country, having a car is a dream come true. Putting your hard-earned money in an efficient and effective means of transport gives you mental satisfaction as well. However, buying a car comes with a sense of responsibility as well, choosing the right kind of car insurance is one of them. 

When you buy a new car you would have to make a comparison between comprehensive insurance vs zero depreciation which can be done only when you know the difference between comprehensive and zero depreciation insurance. As you may already know comprehensive car insurance, as the name suggests, offers wider coverage. It covers third-party damages along with the damages suffered by your own car. 

What is zero depreciation?

If you have been wanting to know what zero depreciation is and why it is important, here’s your answer. Depreciation basically is the deterioration of the value of your car or a  product due to regular use, it is also called wear and tear. Let us see this example, suppose you have purchased a four-wheeler worth INR 10 lakhs. Two years later if you wish to sell it, obviously its value will not be the same. This decrease is because of depreciation. The older the product, the higher the depreciation.

Therefore, depreciation will always have a direct effect on the Insured Declared Value, IDV of the vehicle. Let’s see the depreciation chart:

Age of the VehicleRate of Depreciation 
Within 6 months5%
6 months – 1 year 15%
1 year – 2 years20%
2 years – 3 years30%
3 years – 4 years40%
4 years – 5 years50%

What is the difference between comprehensive and zero depreciation insurance?

First things first, let’s do a comparison of comprehensive vs zero dep. Comprehensive insurance is a kind of insurance, whereas zero depreciation is an optional cover that you can opt for by paying an extra amount. When you purchase a new car, for wider coverage you can opt for a comprehensive car insurance policy and then select Zero-Depreciation insurance as an add-on benefit. 

In a comprehensive insurance policy, you are provided with a cover against almost every kind of unpredictable accident, both natural and manmade, that causes damage to your vehicle. On the other hand, zero dep is a part of a comprehensive policy or a standalone own damage policy that would cover the loss due to depreciation. It would not cover the cost of accidental repairs. 

Another difference between zero dep and comprehensive insurance is that comprehensive insurance can be for an old vehicle also, whereas zero dep can be purchased for vehicles that are less than 5 years old.


As a driver, you need to be careful about a lot of things. An important aspect of following rules is car insurance. Though there are many car insurance companies and plans, selecting the one that suits you can be crucial. Understanding the difference between comprehensive and zero depreciation insurance will surely help you in making the right decision. 

Also Read: Tips to Compare Car Insurance Plans in Delhi

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