Knowledge Centre

Which Plan Suits You Better: Zero Depreciation Or Comprehensive Insurance Cover?

We congratulate you on the purchase of your dream car, an asset you wished and planned for a long time. While the mood is positive and happy, let it not fool you into taking it easy and ignoring another key purchase that not only complements your purchase but also necessitates – your car insurance. Similar to any other insurance product, your car insurance purchase must be subject to careful consideration. We at HDFC ERGO list down the two popular plans that often confuse most car owners – Comprehensive cover with Zero Depreciation Cover and regular Comprehensive Insurance Cover.

Zero Depreciation Meaning

Zero Depreciation as the name implies, promises comprehensive coverage to your car in the event of any claim. This policy does not factor in depreciation, ensuring full settlement of your claim amount. In the event of any unfortunate accident, we at HDFC ERGO ensure that your entire cost is taken care of under your Comprehensive cover with Zero Depreciation Cover policy. Predictably, this policy is extremely popular amongst a majority of car owners due to its comprehensive coverage. While the policy premium may cost a tad bit more than your standard policy, it guarantees peace of mind. Also known as the bumper to bumper cover, this policy ensures that the normal wear and tear does not impact your settlement amount. Zero depreciation benefit can be availed only in case of partial losses

Comprehensive Insurance Policies

In the event of certain events like theft, fire and vandalism; a Comprehensive Insurance Cover settles your loss and damage claim. The claim amount in such a policy takes into account the current value of your car, after considering depreciation. We at HDFC ERGO offer you various add on options, that allow you to widen your car insurance coverage. Unlike the Comprehensive cover with Zero Depreciation Cover policy, a Comprehensive Insurance Cover is much more economical. This policy is extremely popular with those car owners who prefer a wider coverage at the cost of depreciation.

Comprehensive cover with Zero Depreciation Cover vs Comprehensive Insurance Cover

As mentioned above, the Comprehensive cover with Zero Depreciation Cover policy excludes the depreciation amount within your partial loss claim settlement. On the other hand, a Comprehensive Insurance Cover considers the current value of your car after considering depreciation, before releasing your claim amount.

With a Comprehensive Insurance Cover policy, your policy premium amount would be significantly lower than the premium amount you would incur with a Comprehensive cover with Zero Depreciation Cover policy. For those who seek an affordable insurance cover, a Comprehensive Insurance Cover makes much more sense.

Cost incurred against the repair of certain parts of your car, the insurer foots the entire amount on a Comprehensive cover with Zero Depreciation Cover . On the other hand, with a Comprehensive Insurance Cover, the owner would have to foot the bill against claims made on the same.


While both policies have their pluses and minuses, the choice of your insurance policy is primarily dependant on your need and situation. One must make an informed decision after carefully studying their individual clauses and features.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before going ahead with the purchase.

Awards & Recognition