You Bought Zero Depreciation Cover, But Still Had to Pay Something from Your Pocket. Why?

Buying a zero depreciation add-on gives many car owners a sense of comfort. It is easy to assume that, with this cover in place, the insurer will pay every rupee of the repair bill whenever there is a claim. But most people find that they still have to contribute something from their own pocket. This is not usually an error; it is the way the cover is structured.

Understanding additional expenses is easier when you know what a zero depreciation cover includes. Here we have discussed in detail.

What Zero Depreciation Cover Actually Changes

In a normal comprehensive policy without this add-on, the insurer applies depreciation on parts when settling a claim.

• Older parts are treated as having lower value. The customer then bears that depreciation portion of the cost. Zero depreciation cover is designed to reduce or remove this deduction on eligible parts, subject to the terms of the add-on.
• However, it does not change everything else in the policy. Other conditions, limits and exclusions continue to apply.
• The car insurance price you pay for the policy and for the add-ons reflects this balance between broader support and the areas that remain outside the insurer’s responsibility.

Common Reasons You Still Pay From Your Pocket

There are several elements of a claim that are usually not covered, even when zero depreciation is active:

Compulsory Excess (deductible)

Most policies specify a mandatory amount that the policyholder must bear for every claim. This is called the compulsory excess. Even with a zero depreciation add-on, this amount remains payable by the customer.

Voluntary Excess (if chosen)

Some owners opt for an additional voluntary excess to reduce their premiums. In such cases, they must pay both the compulsory and voluntary excesses before the insurer’s share is applied.

Consumables

Standard policies often exclude items such as engine oil, coolant, brake fluid, nuts, bolts and other small parts. Unless there is a specific consumables add-on, these costs may not be covered. Even with that add-on, there may be limits and conditions.

Part of Labour Charges

Policies may cover labour associated with panel replacement, painting and related work, but there can be situations where some labour items are only partly covered or treated separately.

Limits and Conditions Within the Zero Depreciation Add-On

The zero depreciation add-on itself often comes with conditions that affect how it works:

• Age of the vehicle: Some insurers only offer zero depreciation up to a certain vehicle age, or restrict the number of years for which it can be renewed.
• Number of claims: A few products cap the number of zero depreciation claims allowed in a policy year. After that limit is crossed, subsequent claims may be settled with standard depreciation.

These details do not always stand out at the time of purchase, but they often appear clearly in the policy wording and schedule.

The Role of Policy Structure and Other Covers

It is also important to remember that zero depreciation operates within the broader structure of your policy.

• Third party insurance is concerned with liability towards others and their property; it does not deal with the cost of repairing your own car.
• To benefit from zero depreciation, you need a policy that includes own-damage cover, usually a comprehensive plan.
• Other add-ons, such as engine protection, roadside assistance or return-to-invoice cover, may also influence how much you finally pay.
• If these are not present, certain costs remain outside the insurer’s responsibility even if the zero depreciation feature is in place.

Why Understanding Your Policy Helps

Many misunderstandings arise because the name “zero depreciation" sounds complete, while in reality, it addresses only one part of the claim calculation. The policyholder remains responsible for the agreed excess, non-covered items, and any portions limited by the wording. Insurers such as HDFC ERGO explain these aspects through product brochures and policy documents. However, it is still helpful for customers to read those sections slowly and ask questions before relying on any one term.

Wrapping Up

Taking time to understand these details can also help you decide which add-ons to choose at the next renewal and how to interpret your claim experience. When you know in advance which parts of a bill you are likely to bear yourself, it becomes easier to separate expected contributions from genuine issues that might require clarification or dispute.

Note to the Reader: This article is part of HT Auto's promotional consumer connect initiative and is independently created by the brand. HT Auto assumes no editorial responsibility for the content.

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