Zero-depreciation cover, also known as bumper-to-bumper insurance, is an add-on that ensures the insurer pays the full cost of replaced parts without deducting depreciation. But is it worth it for older vehicles?
For cars under 5 years old, zero-depreciation cover can be highly beneficial. The depreciation rates on car parts can be significant — up to 50% for plastic and rubber parts, which are commonly replaced after accidents.
However, for cars older than 5 years, many insurers limit the zero-dep cover or charge higher premiums. At GIIB, our advisors help you evaluate whether the additional premium justifies the benefit based on your vehicle's age, usage, and your driving habits in metro cities.
Key factors to consider:
- Vehicle age and depreciation rate
- Your driving patterns and risk exposure
- Premium difference between standard and zero-dep cover
- Claim history and NCB benefits
Speak to a GIIB advisor to get personalized advice on whether zero-depreciation cover makes sense for your car.