The subject of motor car insurance is a little technical. So it makes sense that some people struggle to grasp its subtleties. There is a lot of incorrect information about car/bike insurance and related terms, which further complicates matters. 

There are a few widespread misconceptions, for instance, regarding the Zero Depreciation Add-on. This article aims to clear up any misunderstandings you may have about the Zero Depreciation Add-on.


Putting to Rest Common Myths Regarding Zero Depreciation Add-On

When resolving claims, the Zero Depreciation Add-on treats the vehicle’s depreciation factor as “zero.” Because of this, the claim payment you receive from the insurance is greater than it would have been without it. 

For instance, if the cost of repairs for the car is ₱200,000, the depreciation would be ₱2000. After depreciation, the claim will be resolved for ₱185,000. However, with this addition, the claim will be settled for ₱200,000 and the depreciation amount will be viewed as zero. 


List of Misconceptions about Zero Depreciation

Cost of Consumables is Covered

The mechanic’s shop requires a variety of consumable supplies for auto repairs, including nuts, bolts, oil, etc. Except if you have a Consumables Add-On, the cost of such things is not covered by a car insurance policy. The Zero Depreciation Cover does not provide coverage for such costs.

Cost of Deductibles is Paid

The cost of Deductibles is not covered by this plan, the same as the Consumables Cost. As a result, you must support the policy’s Compulsory Deductible clause in the event of a claim. In the event of a claim, the policyholder is expected to cover a predetermined nominal sum.

Only One Claim Is Allowed

The number of times you can make a claim under this plan within a policy period may be limited. Although twice is usually the limit, it can change. There cannot be any restrictions. For instance, ACKO does not now have such a limit, but this could change in the future. Therefore, it is best to read the Policy Wordings when purchasing the coverage to understand the claim cap for the Zero Depreciation Cover.

Older cars can easily be purchased with zero depreciation

It could be challenging to get a Zero Depreciation Add-on insurance policy for a car that is six years old. This add-on is typically not available from insurance for vehicles older than five years.

No Exclusions

The Zero Depreciation Add-on has exclusions just like other car insurance add-ons. It typically excludes the following features of an insured car.

  1. Damage brought on by a vehicle’s technical failure
  2. Regular deterioration
  3. Damage brought on by an oil spill or a water intrusion
  4. Damage to uninsured components, such as a bi-fuel kit or gas kit.

Not accessible to two-wheelers

Both cars and motorcycles are eligible for the Zero Depreciation add-on. You have the option of selecting both the Comprehensive Plan and this add-on coverage when purchasing or renewing your auto insurance.




To offset your costs while settling a claim, Zero Depreciation Cover is a crucial add-on. Get the facts straight regarding the myths before purchasing this add-on. Before purchasing this add-on, examine the Policy Wordings, read blogs, or get in touch with the Customer Care staff to dispel any myths about Zero Depreciation Cover.