A zero depreciation policy is a type of auto insurance that covers the repair or replacement of your vehicle without any deduction for depreciation. In other words, if your vehicle is totaled in an accident, your insurance company will pay to replace it with a new one, minus your deductible.
A zero depreciation policy usually costs more than a traditional policy, but it may be worth the extra cost if you own a new or expensive car. If you have an older car, you may not need a zero depreciation policy since your vehicle will have already depreciated in value.
