In a normal comprehensive policy, the insurer deducts depreciation from the price of replaced parts. This means you pay a part of the repair bill yourself. Zero depreciation (also called zero dep or bumper-to-bumper) cover removes that deduction.
How Depreciation Works in a Claim
Parts such as plastic, rubber, fibre and metal lose value with age. When your car is repaired, the insurer reduces the payout on those parts using a depreciation percentage. On a large claim, the amount you pay from your pocket can be substantial.
What Zero Depreciation Cover Gives You
With this add-on, the insurer pays the full cost of replaced parts, without depreciation deductions, subject to policy limits. Some things are still not covered, such as normal wear and tear and consumables like oil, nuts and bolts unless you buy a consumables cover.
Who Should Buy It
- Owners of new cars, especially in the first five years
- People who drive in heavy traffic or park on the street
- Owners of expensive cars where parts cost a lot
- Anyone who wants fewer surprises at the garage
Who May Skip It
For an old car, many insurers do not offer this cover, and the benefit is small because the car’s value is already low. If you rarely drive, the extra premium may not be worth it.
Things to Check Before Buying
- Age limit of the car for this add-on
- Number of claims allowed per year
- Whether consumables are included
- Any deductible or exclusions listed in the policy
Final Thoughts
Zero dep raises your premium, but it can save you a lot of money in a major claim. For new cars, it is usually a smart add-on.
Frequently Asked Questions
Is zero depreciation cover available for every car?
No. Many insurers offer it only for cars up to a certain age, so check with your insurer.
Does zero dep cover engine damage?
Not usually. Engine damage from water ingress needs a separate engine protection add-on.
Does zero dep increase my premium a lot?
It adds to the premium, but the increase is small compared with the potential saving on a big claim.
