{"id":191419,"date":"2026-07-08T04:44:09","date_gmt":"2026-07-08T10:14:09","guid":{"rendered":"https:\/\/newslink360.space\/?p=191419"},"modified":"2026-07-08T04:44:09","modified_gmt":"2026-07-08T10:14:09","slug":"zero-dep-or-own-damage-which-one-will-be-most-beneficial-to-choose-while-taking-car-insurance","status":"publish","type":"post","link":"https:\/\/newslink360.space\/?p=191419","title":{"rendered":"Zero Dep or Own Damage? Which one will be most beneficial to choose while taking car insurance?"},"content":{"rendered":"

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While buying car insurance, many people remain confused as to what should be the basic coverage and which add-ons are beneficial. On-damage i.e. Own Damage (OD) cover and Zero Depreciation (Zero Dep) are two important terms. OD protects against damage caused to your own car, while Zero Dep eliminates the depreciation deduction on parts at the time of claim.<\/p>\n

Nowadays, in view of the rising repair costs and inflation of parts, it is important to make the right choice between the two. In this article we will understand the difference in detail. Claim process, premium impact and also which option is better for you? By choosing the right insurance, you can avoid unnecessary expenses and get complete protection.<\/p>\n

What is Own Damage Insurance?<\/h2>\n

Own Damage cover primarily provides protection against damage caused to your car. This includes road accidents, theft, fire, natural disasters (flood, earthquake), riots etc. It can be purchased along with third party insurance and is also available as a standalone OD policy.<\/p>\n

In OD cover, depreciation is deducted on the cost of parts at the time of claim settlement. For example, the reduction may be 50% on plastic\/rubber parts, 0-50% on metal parts depending on age. Labor charges are usually full, but parts costs are reduced. For older cars or those looking for a budget-friendly option, the OD offers basic safety. As per IRDAI regulations, it is available in standalone form from 2019.<\/p>\n

What does Zero Dep mean?<\/h3>\n

Zero Depreciation is an add-on cover taken with an OD or Comprehensive policy. This is also called bumper-to-bumper or Nil Depreciation. In this, there is no depreciation deduction on the parts replaced at the time of claim. Meaning, the insurance company covers the entire bill (after certain deductibles).<\/p>\n

This is especially beneficial for new or luxury cars, because parts are expensive and the amount of depreciation can be high. Generally it is available for cars up to 5 years old. The premium is 15-30% more than the OD premium, but the savings in claims are considerable. The number of claims in this add-on is limited (2-3 claims per). These are the differences between the two-<\/p>\n