You go to renew your car insurance for your 6-year-old Swift or Creta.
The agent tells you: "Sir, your car is older than 5 years. You are no longer eligible for Zero Depreciation (Zero Dep) cover. You can only take a Standard Comprehensive policy."
You agree, thinking it's the rule.
Then you have a small accident. You damage your front bumper and headlight.
The bill is ₹20,000.
The insurance company pays only ₹10,000. You pay ₹10,000 from your pocket.
Why? Because of Depreciation.
But here is the secret: You CAN get Zero Dep for old cars (even up to 10 years) if you choose the right insurer.
Disclaimer: Availability depends on the car model and claim history. A vehicle inspection is usually required for older cars.
How to Get 'Zero Depreciation' Cover Even for Older Cars
1. The "Depreciation" Trap for Old Cars
As per IRDAI rules, as your car ages, the value of its parts decreases.
If you don't have the "Zero Depreciation" add-on, you must pay a percentage of the replacement cost:
- Rubber/Nylon/Plastic Parts (Bumpers, Airbags): 50% Depreciation (You pay half!).
- Fiberglass Components: 30% Depreciation.
- Metal Parts: Depreciates by age (up to 50% for 10-year-old cars).
- Glass: 0% (Full cover).
Since most city accidents involve bumpers and headlights (plastic), standard insurance forces you to pay huge amounts.
2. The "5-Year Rule" Is a Myth
Traditionally, insurers stopped offering Zero Dep after the car turned 5 years old.
However, in 2026, new-age digital insurers have changed the game.
Companies like Digit, Acko, Zuno, and Royal Sundaram now offer Zero Dep add-ons for cars up to 7, and sometimes 10 years old.
3. Is It Worth the Extra Premium?
Let's do the math.
💰 Scenario: 7-Year-Old Car Crash
Damage: Front Bumper + Headlight + Grill replacement.
- Total Repair Bill: ₹25,000 (Parts) + ₹5,000 (Labor) = ₹30,000.
- With Standard Policy: Insurer deducts 50% on parts (-₹12,500). You Pay ₹12,500 + Deductible.
- With Zero Dep Add-on: Insurer pays 100% of parts. You Pay ₹1,000 or ₹2,000 (Compulsory Deductible only).
Cost of Add-on: Approx ₹2,500 extra per year.
Verdict: One claim saves you 4x the premium cost.
4. The "Consumables" Catch (Pro Tip)
Even with Zero Dep, you might still see a bill for "Nuts, Bolts, Oil, and Coolant."
These are called Consumables, and Zero Dep does not cover them.
Action: When buying Zero Dep for an old car, always spend an extra ₹200 to add "Consumables Cover." This ensures your bill is truly minimal.
5. How to Find These Plans
Don't just auto-renew with your current dealer (who might not have these options).
Go online to aggregators like Policybazaar or check the insurers' websites directly.
- Enter your car details (Registration Year: e.g., 2018).
- Look for the "Add-ons" filter.
- Tick "Zero Depreciation".
- Inspection Alert: Be prepared to upload a video of your car. They will inspect it to ensure there are no existing dents before issuing the policy.
Old Cars Need Love Too
Just because your car is 7 years old doesn't mean you should pay half the repair bill.
Modern cars have expensive plastic parts. One minor crash can cost a fortune.
Switch to an insurer that respects your car's value. Pay a little extra premium, and keep your savings safe.
Helpful Resources:
Digit Insurance: Zero Dep for Old Cars
Acko: Bumper-to-Bumper Protection Guide
0 Comments