When Rohan backed his brand new sedan into a concrete pillar, the entire rear bumper shattered. The repair estimate was a staggering ₹35,000. He wasn't too worried; he had purchased comprehensive car insurance.

However, when the claim was settled, the insurer only paid ₹17,500. Rohan was furious. He quickly learned about the concept of depreciation in insurance. Standard comprehensive policies deduct a depreciation value based on the material of the damaged part. Plastic and rubber parts (like his bumper) attract a massive 50% depreciation deduction from day one. Rohan had to pay the remaining ₹17,500 entirely out of pocket.

The next year, Rohan didn't just blindly renew his standard policy. He opted for a Zero Depreciation (Bumper-to-Bumper) Add-on. This add-on slightly increased his upfront premium, but it waived all depreciation deductions during claim settlement. If he had that accident again, the insurer would cover the full ₹35,000.

When buying car insurance, the lowest premium is rarely the best deal. A standard policy leaves you highly exposed to partial out-of-pocket payments. Strategically utilizing add-ons like Zero Depreciation for cars under 5 years old, and Engine Protection for areas prone to waterlogging, ensures you have genuine financial protection rather than just a legal compliance certificate.