Zero Depreciation Benefit Calculator

Work out zero depreciation benefit instantly with clear inputs, formula shown and shareable results.

About Zero Depreciation Benefit Calculator

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.

Formulas

Depreciation saved per claim

Saved = Parts value x Average depreciation %

Break-even claims

Break-even = Additional premium / Saved per claim

Worked example

With the default values below, Zero Depreciation Benefit Calculator returns Net benefit of zero depreciation of $47,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Expected parts value per claim: 90,000
Expected claims over the cover period: 2
Average depreciation that would be deducted: 30
Additional premium for zero depreciation: 7,000

Results

Net benefit of zero depreciation: $47,000.00
Depreciation saved per claim: $27,000.00
Total depreciation saved: $54,000.00
Claims needed to break even: 0.26

Step by step

1Values used
2Depreciation saved per claim
3Break-even claims
4Net benefit of zero depreciation= 47,000.00
5Depreciation saved per claim= 27,000.00
6Total depreciation saved= 54,000.00
7Claims needed to break even= 0.26

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation or fees or charges into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
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.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

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.

Frequently Asked Questions

Is zero depreciation worth it on an older car?

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.

Are there limits on the number of claims?

Usually yes — commonly two claims per policy year. Beyond that, standard depreciation applies again.