Car Insurance Alert: Doing This Could Cut Your Claim On Damaged Parts By 25% — Here’s How To Stop

Many car owners are caught off guard when they file an insurance claim after an accident—only to receive a much lower payout than expected. If you’ve been reimbursed just 75% of the cost of damaged motor parts, the main reason is depreciation. Let’s understand what this means and how you can avoid losing money in the future.

Why Your Insurer Deducted 25%?

Insurers apply standard depreciation rates on replaced parts before settling claims. Simply put, the older your car or its components, the less they’re worth in the eyes of the insurer.

Parts made of plastic, rubber, or fibre often attract 25% depreciation, meaning the insurer only pays 75% of the replacement cost, and you pay the rest.

According to an auto insurance firm:

• Plastic, rubber, and nylon parts: 25–50% depreciation
• Fibreglass components: 30% depreciation
• Metal parts: Up to 50% depreciation, depending on the car’s age
• So even if a part like your bumper is recently installed, it may still be treated as partially depreciated due to the material used or your vehicle’s age

How to Fix the Depreciation Costs

You can avoid these deductions by opting for a Zero Depreciation add-on, also called a bumper-to-bumper cover. This is an optional upgrade to your regular car insurance policy that ensures the full cost of part replacements is covered, without applying depreciation. With this add-on, the insurer pays 100% of the cost of damaged parts. Your out-of-pocket expenses drop significantly during a claim.

This cover is generally available for cars up to 5–7 years old, depending on the insurer. While it comes with a slightly higher premium, it can be well worth the cost if your car is ever involved in an accident.

Also Read: Auto Insurance in 2025: Smart Tips to Lower Your Premiums Without Sacrificing Coverage | Republic World

How to Avoid Getting Shortchanged

Here are a few simple steps to protect yourself from unexpected deductions:

1. Opt for Zero Depreciation cover when buying or renewing your insurance.


2. Read your policy document carefully—pay attention to the fine print.


3. Use authorized garages to ensure cashless, smoother claim processing.


4. Keep bills and damage photos ready when filing a claim.


5. Review your policy annually, especially if your car is getting older or your usage habits have changed.

The Big Picture

Car insurance is meant to offer peace of mind—not leave you with surprise expenses. But unless you understand how depreciation works, you may end up paying far more after an accident than you planned for. Spending a little more on the right cover today can help you avoid big financial shocks tomorrow.