Optional add-on
Zero / Nil Depreciation
An optional add-on that, where offered, changes how depreciation is applied to covered part replacement in an own-damage claim.
What it generally does
In a normal own-damage claim, depreciation is generally applied to replaced parts. Where this add-on is offered, selected and charged, it changes how that deduction is treated, within the conditions the insurer sets.
Scope
What it generally addresses
What it generally addresses
- The treatment of depreciation on covered part replacement, as defined by the add-on wording
- Only claims that are payable under the base own-damage section
What it generally does not address
- Anything the base policy already excludes
- Consumables, unless a separate add-on addresses them
- Claims beyond any limit on the number of times the add-on may be used
Before choosing
Things to check
- Availability depends on the insurer, the product, the vehicle and its age
- The number of permitted claims under the add-on is generally limited
- The compulsory deductible generally still applies
Routes
Vehicle routes this is commonly discussed for
FAQs
Zero / Nil Depreciation questions
No. It changes how depreciation is applied to covered part replacement. Other terms, including the compulsory deductible and the base policy exclusions, generally still apply.
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Disclaimer
Information on this website is provided for general guidance. Actual insurance coverage, exclusions, eligibility, premium, deductibles, add-ons, claims and policy conditions depend on the applicable insurer, product, vehicle, use, policy wording and applicable law.
Official insurer policy wording and applicable law prevail.