Motor Insurance Term
Zero Depreciation
An add-on that pays the full cost of replaced parts, no depreciation cut.
What is Zero Depreciation?
Normally, insurers deduct depreciation on replaced parts during a claim, so you pay a share. A zero-depreciation (or 'bumper-to-bumper') add-on waives that deduction, so you get the full claim.
It's most valuable for newer cars, typically those under five years old.
Example
Replace a plastic bumper and the insurer normally deducts depreciation — zero-dep pays the full amount.
Related terms
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