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Zero depreciation cover waives the material-based depreciation deductions on parts, so its value is the depreciation you would otherwise absorb multiplied by the number of claims you expect. On a newer vehicle a single moderate claim usually recovers the additional premium.
Depreciation saved per claim
Saved = Parts value x Average depreciation %
Break-even claims
Break-even = Additional premium / Saved per claim
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.
Less so. Most insurers restrict the add-on to vehicles under five years old, and the parts values on older cars are lower relative to the premium.
Usually yes — commonly two claims per policy year. Beyond that, standard depreciation applies again.