<h1>Zero Depreciation Add-On Boosts Car Insurance Payouts for Newer Vehicles but Raises Premiums and Has Usage Limits</h1> Zero depreciation is an optional add-on to comprehensive motor insurance that prevents insurers from deducting part depreciation when settling claims for damaged or replaced components, increasing claim payouts for policyholders. It typically applies to newer vehicles, raises premiums, and may limit the number of zero-dep claims per policy year. Coverage usually excludes engine wear, consumables (tyres, batteries, oil) and mechanical breakdowns, and insureds remain liable for deductibles. The add-on is unavailable for third-party policies and may be restricted by vehicle age and insurer terms, making it most cost-effective for new, high-value, or high-risk drivers.