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What Is Zero Depreciation in Car Insurance?
Learn how zero-depreciation add-ons may affect eligible own-damage claims.
Alliance Investment Associates editorial team4 min read
What the add-on changes
Standard claim calculations may deduct depreciation on replaced parts. A zero-depreciation add-on can reduce eligible deductions subject to terms.
Limits and exclusions
Vehicle age, number of claims, excluded parts, deductibles and specific damage causes can limit the benefit.
Before adding it
Compare the added premium with the vehicle’s age, usage and the policy wording rather than relying on the add-on name.
Questions readers often ask
Does zero depreciation mean a claim has no cost?+
No. Deductibles, exclusions and non-covered items may still apply.
Is it available for every car?+
Availability and eligibility vary by insurer and vehicle age.
Continue with a relevant service
Use this guide as a starting point, then discuss your circumstances before making a financial or insurance decision.
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