Is ACKO Zero Depreciation Car Insurance Really Better? The Truth About Bumper-to-Bumper Claims!
Owning a car in India is a dream for many, but navigating the complexities of motor insurance can often feel like a daunting task. With the rise of digital-first insurers, ACKO Zero Depreciation Car Insurance has emerged as a frontrunner, promising a seamless, paperless, and cost-effective experience.
But does it truly live up to the hype? In this deep-dive review, we explore everything you need to know about ACKO’s zero-depreciation cover—from technical specifications to its value proposition for the modern Indian driver.
What is ACKO Zero Depreciation Car Insurance?
In a standard comprehensive car insurance policy, the insurer deducts ‘depreciation’ from the claim amount based on the age of the car parts (plastic, rubber, metal). This means you end up paying a significant portion of the repair bill out of your pocket.
ACKO Zero Depreciation Car Insurance (often called ‘Nil Dep’ or ‘Bumper-to-Bumper’ cover) is an add-on that nullifies this deduction. If your car is damaged, ACKO pays the full cost of replacing parts, ensuring your savings remain untouched.
Why ACKO is Gaining Popularity in India
ACKO has disrupted the traditional insurance market by adopting a direct-to-consumer model. By eliminating middleman commissions (agents), they pass the savings directly to the policyholder, often resulting in premiums that are 20% to 40% lower than traditional competitors.
Key Technical Specifications of ACKO Zero Depreciation Car Insurance
| Feature | Details |
| Eligibility | Cars up to 5 years old (some variants extend to 7 years) |
| Claim Limit | Usually 2 claims per policy year (standard) or unlimited (premium) |
| Parts Covered | Plastic, Rubber, Glass, Fibre, and Metal parts |
| Compulsory Deductible | ₹1,000 to ₹2,000 (standard as per IRDAI) |
| Settlement Speed | Same-day settlement for minor repairs in select cities |
The Benefits of Choosing ACKO Zero Depreciation Cover
1. Maximum Financial Protection
With ACKO Zero Depreciation Car Insurance, the depreciation value of parts—which can range from 5% to 50% depending on the material and age—is waived. This is particularly crucial for premium cars where spare parts are expensive.
2. Seamless Digital Experience
The ACKO app is arguably the best in the Indian insurtech space. From purchasing the policy in under two minutes to tracking claims in real-time, the entire process is mobile-first.
3. No Paperwork Hassles
Gone are the days of submitting stacks of physical documents. ACKO operates on a digital-only framework, requiring only your vehicle registration number and previous policy details for a quick renewal or purchase.
4. Zero Commissions
Because you buy directly from the website or app, there are no hidden agent fees. This transparency builds a high level of trust, aligning with Google’s E-E-A-T principles.
Pros and Cons ACKO Zero Depreciation Car Insurance
Pros
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Highly Competitive Pricing: Often the cheapest zero-depreciation quotes in India.
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Fast Claims: Instant settlement for small dents and repairs.
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Network Garages: A vast network of 5,000+ cashless garages across India.
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User Interface: Extremely intuitive app and website.
Cons
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Digital-Only: Might be challenging for those who prefer face-to-face interaction with an agent.
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Age Limit: Older cars (typically above 5-7 years) are not eligible for the zero-depreciation add-on.
Who Should Buy ACKO Zero Depreciation Car Insurance?
This policy is ideal for:
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New Car Owners: Anyone who has purchased a vehicle in the last 1–3 years.
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First-time Drivers: Those more prone to minor bumps and scratches.
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Luxury Car Owners: Where the cost of plastic and fibre parts is astronomical.
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Tech-Savvy Users: Individuals who value time and prefer DIY digital solutions.
Frequently Asked Questions (FAQs) of ACKO Zero Depreciation Car Insurance
1. Is ACKO car insurance valid across India? Yes, ACKO is a licensed general insurance company regulated by the IRDAI, and its policies are valid nationwide.
2. How many claims can I make with ACKO Zero Depreciation Car Insurance? Typically, ACKO allows two zero-depreciation claims during a policy year, though this depends on the specific plan chosen.
3. Does zero dep cover tyre and battery replacement? Standard zero dep covers 50% of the cost for tyres and batteries unless a specific ‘Tyre Protect’ add-on is purchased.
4. Can I buy ACKO insurance for a second-hand car? Yes, as long as the car is within the age limit for zero-depreciation coverage.
5. What is the claim settlement ratio of ACKO? ACKO consistently maintains a high claim settlement ratio (usually above 95%), reflecting its efficiency.
6. Does ACKO offer a ‘Cashless’ facility? Yes, ACKO has thousands of partner garages where repairs are handled directly between the insurer and the workshop.
7. Is a physical inspection required for renewing an expired policy? ACKO often allows for digital inspections via photos/videos uploaded through their app, making renewal of expired policies faster.
8. What is the ‘Compulsory Deductible’? This is a small fee (usually ₹1,000) mandated by the IRDAI that the policyholder must pay for every claim.
9. Can I transfer my No Claim Bonus (NCB) to ACKO? Absolutely. You can transfer up to 50% of your earned NCB from any other insurer to ACKO.
10. What is not covered in zero depreciation? Mechanical breakdowns, wear and tear, and damage due to driving under the influence of alcohol are not covered.
11. Is ACKO cheaper than HDFC Ergo or ICICI Lombard? In most cases, yes, because of the direct-to-consumer digital model.
12. How do I track my claim on ACKO? You can track the live status of your repair and claim settlement directly through the ACKO mobile app.
13. Does zero dep cover engine damage? Not by default. For engine protection against water ingression (hydrostatic lock), you need the ‘Engine Protect’ add-on.
14. What documents are needed for a claim? Digitally uploaded copies of your DL, RC, and pictures of the damaged vehicle.
15. Can I cancel my ACKO policy? Yes, you can cancel and get a pro-rata refund, provided no claims have been made.
16. Does ACKO offer 24×7 Roadside Assistance? Yes, this is available as an optional add-on with your zero-depreciation policy.
17. What is ‘Return to Invoice’ cover? This ensures that in case of total loss/theft, you get the full invoice value of the car back, not just the IDV.
18. Why is my premium different from the quote? Premiums can vary based on the IDV (Insured Declared Value), location, and specific add-ons selected.
19. Is ACKO safe? Yes, ACKO is backed by major investors like Amazon and is fully regulated by the IRDAI.
20. Can I upgrade to Zero Dep during mid-policy? Usually, add-ons can only be added at the time of purchase or during the renewal window.
Final Verdict
ACKO Zero Depreciation Car Insurance is a stellar choice for the modern Indian car owner who seeks a balance between affordability and comprehensive protection. By leveraging technology to reduce costs and improve the user experience, ACKO has set a new standard in the Indian insurance landscape.
If your car is less than five years old, opting for this cover is one of the smartest financial decisions you can make to protect your asset against the unpredictable nature of Indian roads.