There are a lot of factors that determine the premiums of your zero-dep cover: Place of vehicle registration: The cost of premiums varies from city to city. They will be higher in Tier 1 cities when compared to Tier 2 or Tier 3 cities. IDV of the vehicle: The more expensive the vehicle, the higher the IDV. Depreciation is calculated based on the car's current market price, which determines the premiums. Additional Accessories: Premiums for optional extras are calculated separately. Age of the vehicle. Type of fuel the vehicle operates on: The type of fuel the car runs on also affects the premium. For example, vehicles that run on electricity and CNG have lower premiums when compared to those that run on petrol or diesel.