A zero depreciation is an add on cover you can take along with a comprehensive car insurance policy. A car insurance policy is primarily divided into third party insurance and comprehensive car insurance policy. A comprehensive car insurance covers damages to the car in case of natural calamities, theft, accident and so on.
A zero depreciation is only an add on cover to this. While you make a claim, the insurance company pays for the depreciated value of the damaged parts. If you take a zero dep cover, the insurance company will pay for the damage completely (as per the market value). However you can take a zero dep only will a car that is usually less than 3 years old.
Hope I have cleared your queries. Do ask me if any doubts persists.
