Zero Depreciation Car Insurance in India 2025 – Full Guide for New & Old Vehicles
If you’re looking for complete protection for your car without paying extra out of pocket during repairs, zero depreciation car insurance is your best choice. In 2025, this add-on continues to gain popularity across India, especially among owners of new cars and high-value vehicles.
But a common question arises — can you buy zero depreciation car insurance after 5 years in India or even after 7 years? Let’s answer that and explain everything you need to know.
What is Zero Depreciation Car Insurance?
Zero depreciation (or nil depreciation) is an add-on cover that ensures you get full claim settlement without any deduction for depreciation on car parts like bumpers, plastic fittings, or fiber panels. Without it, insurers usually deduct 30–50% of part value during claims.
With zero depreciation car insurance, you pay a slightly higher premium, but in return:
- You get the full repair cost during claims
- No depreciation is applied to parts
- It covers metal, plastic, and fiber parts
Is Zero Depreciation Car Insurance Available After 5 or 7 Years in India?
Most insurers in India, including ICICI Lombard, offer zero depreciation car insurance only for cars up to 5 years old. However, some insurers now allow the cover for vehicles older than 5 years, subject to inspection and premium loading.
Can I get zero depreciation car insurance after 5 years in India?
Yes, but it depends on the insurer. Some companies offer this coverage for cars aged up to 7 years, usually after a vehicle inspection.
Can I get 0 depreciation car insurance after 7 years in India?
This is rare. Very few insurers offer zero depreciation car insurance after 7 years in India, and if available, it will require strict vehicle checks, a higher premium, and might include exclusions.
ICICI Lombard Zero Depreciation Car Insurance Features
ICICI Lombard offers a robust car insurance package that allows you to add zero depreciation cover if your car is eligible. Here’s what’s included:
- Full claim payout without depreciation on parts
- Access to 6,500+ cashless garages across India
- Instant digital claim settlement via the IL TakeCare app
- Personal Accident Cover of up to ₹15 lakh
- Optional add-ons like engine protect, roadside assistance, and return to invoice
- Premium starting from just ₹2,094/year (for TP cover)
Who Should Opt for Zero Depreciation Car Insurance?
This cover is ideal for:
- New car owners (0–5 years)
- Luxury or expensive vehicle owners
- People in high-traffic areas with frequent dents/scratches
- First-time or young drivers
For older cars, if you can find 0 depreciation car insurance after 5 years India or even 0 depreciation car insurance after 7 years India, it’s worth considering if the car still holds high resale value or repair costs are significant.
Limitations of Zero Depreciation Cover
While it offers maximum claim benefits, it comes with:
- Age limit: Generally available up to 5 years; after that, limited options
- Higher premium: Expect a 15–20% increase in cost
- Maximum claims: Some insurers cap the number of zero dep claims per year
How to Apply for Zero Depreciation Car Insurance
You can add zero depreciation when buying or renewing your comprehensive car insurance. Steps:
- Visit the ICICI Lombard website or app
- Enter your vehicle registration number (e.g., MH01AB1234)
- Choose comprehensive cover and add “Zero Depreciation” in add-ons
- Enter personal details and review the premium
- Make payment and receive the digital policy instantly
For cars older than 5 years, you may need to undergo a vehicle inspection or submit additional documents to check eligibility.
What is zero depreciation car insurance?
Zero depreciation car insurance is an add-on to your standard comprehensive car insurance that ensures you get the full cost of replaced car parts without any deduction for depreciation. It covers parts like plastic, rubber, fiber, glass, and metal, allowing you to claim the entire cost of repairs without bearing the burden of part wear-and-tear deductions.
Is 0 depreciation car insurance worth it?
Yes, 0 depreciation car insurance is highly recommended, especially for new or high-value vehicles. It prevents unexpected repair costs by eliminating depreciation charges on parts during claims. The slightly higher premium is justified by the potential savings and peace of mind during accidents or damages.
Can I get zero depreciation car insurance after 5 years in India?
While most insurers offer zero depreciation only for cars under 5 years, a few now provide zero depreciation car insurance after 5 years in India. However, this is subject to conditions such as vehicle inspection, good maintenance history, and may come with a higher premium.
Can I buy zero depreciation car insurance after 7 years in India?
Getting zero depreciation car insurance after 7 years in India is uncommon, but not impossible. Select insurers may allow it for well-maintained cars after a successful inspection. The availability varies based on your insurer, location, and the specific policy terms.
How much does zero depreciation car insurance cost?
Adding 0 depreciation coverage increases the premium by around 15% to 20%. This cost depends on your car’s age, model, location, and insurer. Despite the added expense, many car owners choose this add-on because it significantly reduces their financial liability during claims.
Does ICICI Lombard offer zero depreciation car insurance?
Yes, ICICI Lombard provides zero depreciation cover as part of its comprehensive car insurance plans. Typically available for cars up to 5 years old, it helps ensure full claim payouts without deductions for part depreciation. Older vehicles may require inspection to qualify.
Which parts are covered under zero depreciation car insurance?
0 depreciation car insurance covers the full cost of all parts typically subject to wear and tear, including plastic bumpers, fiber panels, rubber parts, glass, and metal body panels. This means you won’t pay anything extra for part replacement during an approved claim.
Is zero depreciation car insurance available for used cars?
Yes, zero depreciation cover is available for used cars, provided they fall within the age eligibility set by the insurer. Some companies now extend the option of zero depreciation car insurance after 5 years in India for second-hand vehicles that are in good condition.
Can I renew zero depreciation car insurance annually?
0 depreciation cover must be selected at every renewal. It is not automatically carried over with your base insurance, so if you want to keep full protection for your vehicle, you should actively choose the zero depreciation add-on each year.
What happens if I don’t take zero depreciation car insurance?
If you skip zero depreciation coverage, your insurer will apply standard depreciation deductions to replaced parts during claims. This could mean paying 30% to 50% of the part costs from your own pocket, especially if the car is older or the damage is extensive.
Final Thoughts
Zero depreciation car insurance is the best protection for Indian car owners who want peace of mind. While most insurers offer it for cars up to 5 years, some now extend it beyond that with conditions.
If you’re looking for 0 depreciation car insurance after 5 years India or even zero depreciation car insurance after 7 years India, talk to your insurer about eligibility and possible inspections. With rising repair costs and expensive spare parts, this add-on can save you thousands in the long run.
For new and mid-age cars, opting for zero depreciation with a policy from ICICI Lombard or a similar provider is a smart move in 202
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Which company gives zero dep insurance after 7 years