If you’re trying to save money on car insurance, it’s tempting to compare third-party cover and a zero-depreciation add-on as if they are two equal choices. They aren’t. One is the legal minimum, the other is a claim-boosting upgrade you add to broader cover.
So the real question is this: when a claim happens, where do your rupees actually go, and which cover keeps more of them in your pocket?
Third-party cover and zero-depreciation operate in different lanes, so comparing them only on premium can be misleading. Your savings during a claim depend on the type of loss you face.
Third-party insurance protects you if your car causes loss to someone else. It is built for legal liability, not for repairing your own vehicle.
If your own bumper, headlamp, bonnet, or door is damaged, third-party cover generally does not cover the repair costs.
Zero-depreciation is an add-on you usually take with own-damage cover or a comprehensive insurance policy. Its job is simple: reduce the depreciation deduction from your claim.
Think of it as protecting your claim amount, not meeting legal requirements.
Most claim disappointments stem from not knowing what is deducted and why. Once you understand the common deductions, you can see where zero-depreciation actually saves money.
In a standard own-damage claim, insurers apply depreciation on certain replaced parts because wear and ageing reduce value over time. That means even if the workshop replaces a part, your insurer may not pay the full replacement cost.
With zero depreciation, the depreciation deduction for covered parts is reduced or eliminated, often increasing your claim amount. Still, it usually does not turn your policy into a blank cheque. You should expect that some items may remain outside its scope, based on wording, wear-and-tear logic, and add-on selection.
This becomes easy once you match the cover to the type of claim you are likely to make.
If your main worry is liability to others, third-party cover can protect you from a large unexpected payout to a third party. In that specific scenario, it can “save you money” by shielding your finances from legal liability.
If you drive often, park in tight city spots, or simply want fewer unpleasant surprises at the workshop, zero-depreciation with comprehensive insurance usually saves you more during an own-damage claim.
You don’t need every add-on, but you do need the right structure for your risk. Start by deciding which would hurt you more: paying for your own repairs or facing third-party liability.
Consider these factors:
Third-party cover is essential for legal compliance and liability protection, but it won’t fund repairs to your own car. Zero-depreciation, taken with own-damage cover or comprehensive insurance, is the option that more directly reduces your out-of-pocket spending during your own-damage claim. If your goal is to keep repair costs predictable after an accident, that’s where the bigger claim-side savings usually sit.
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