Zero Depreciation Insurance is a popular add-on that prevents depreciation deductions from your vehicle insurance claim. But many policyholders wonder—does Zero Depreciation cover engine damage? Let’s dive deep into this topic.
What is Zero Depreciation Insurance?
Zero Depreciation (Zero Dep) Insurance is an add-on cover that ensures you receive the full claim amount without depreciation deductions on parts like plastic, rubber, fiber, and metal during repairs.
✅ Covers:
- Full repair or replacement cost of damaged vehicle parts.
- Plastic, rubber, metal, and fiber components.
❌ Does NOT Cover:
- Engine damage due to oil leakage, waterlogging, or mechanical failure.
- Regular wear & tear or mechanical breakdown.
Does Zero Depreciation Cover Engine Damage?
No, Zero Depreciation does not cover engine damage unless it is due to an accident. If your engine is damaged due to flooding, lack of lubrication, or internal breakdown, it won’t be covered unless you have an Engine Protection Cover add-on.
✅ Covered Under Zero Depreciation:
✔ Accidental damage to the engine due to collision.
❌ Not Covered Under Zero Depreciation:
✖ Engine failure due to water ingress (hydrostatic lock).
✖ Damage due to oil leakage or lubrication failure.
✖ Mechanical or electrical breakdown.
✖ Gradual wear & tear of engine components.
How to Protect Your Engine? – Get Engine Protection Cover
If you want to cover engine damage due to waterlogging, oil leakage, or internal failures, you must purchase an Engine Protection Cover as an add-on to your policy.
What Does Engine Protection Cover Include?
✔ Water Ingress Damage: Covers engine damage due to water entering the combustion chamber during floods.
✔ Lubricant/Oil Leakage: Protects against engine seizure caused by lack of lubrication.
✔ Hydrostatic Lock Damage: Covers repair costs if the vehicle gets submerged and refuses to start.
✔ Gearbox Damage: Covers engine failure due to transmission malfunctions.
Zero Depreciation vs. Engine Protection Cover – Key Differences
| Feature | Zero Depreciation Cover | Engine Protection Cover |
|---|---|---|
| Covers Engine Damage? | No | Yes |
| Covers Accidental Damage? | Yes | Yes |
| Covers Water Damage? | No | Yes |
| Covers Oil Leakage & Lubrication Issues? | No | Yes |
| Covers Mechanical Failures? | No | Yes |
| Covers Plastic, Rubber, and Metal Parts? | Yes | No |
| Who Should Buy It? | Those looking for full claim benefits without depreciation deductions. | Those wanting complete engine protection from floods, oil leakage, and breakdowns. |
FAQs on Zero Depreciation & Engine Protection Cover
1. Does Zero Depreciation Cover Engine Seizure?
No, Zero Depreciation does not cover engine seizure due to water damage or oil leakage. You need an Engine Protection Cover for that.
2. Will My Insurance Cover Engine Damage If I Drive Through Waterlogged Roads?
Only if you have an Engine Protection Cover. Standard comprehensive and Zero Dep insurance won’t cover hydrostatic lock damage.
3. Can I Buy Engine Protection Cover with Third-Party Insurance?
No, Engine Protection Cover is only available with a Comprehensive Car or Bike Insurance policy.
4. Is Engine Protection Cover Worth It?
Yes, especially if you live in flood-prone areas or own a high-end vehicle with expensive engine parts.
5. How Much Does Engine Protection Cover Cost?
The cost varies based on the vehicle model and insurer, but it generally adds 5-10% to your base insurance premium.
6. Does Zero Depreciation Cover Electrical Failures in the Engine?
No, electrical and mechanical failures are not covered under Zero Dep insurance.
7. Can I Claim Engine Damage Under Warranty Instead of Insurance?
If your vehicle is under warranty, the manufacturer may cover certain types of engine damage. However, water damage and oil leakage are usually not covered under warranty.
Final Verdict: Should You Get Engine Protection Cover?
If you want to protect your engine from unexpected damage due to flooding, oil leakage, or internal breakdowns, then adding an Engine Protection Cover to your Zero Depreciation Policy is highly recommended.
📌 Pro Tip: Always read the policy terms carefully and check if the insurer provides engine coverage before purchasing your insurance.
