What is Bumper to Bumper & Who is it Suitable for?
Bumper-to-bumper car insurance also called Zero depreciation or Nil depreciation is an insurance policy offering complete coverage for your vehicle irrespective of the depreciation of its various components. Through this car insurance, the insurer is liable to pay for the full cost of any loss/damage to your vehicle due to a mishappening. It provided full coverage for all rubber, metal, and fiber parts of the vehicle without reducing their depreciation value as compared to a standard policy rendering anywhere between 0-40% claims.
A zero depreciation cover is best for the following people due to the add-on benefit it offers:
- New or luxury car owners.
- New or inexperienced drivers
- Car owners living in accident-prone areas or are concerned about small dents and bumps
In a bumper to bumper/nil depreciation cover, the following are its features, inclusions, and exclusions:
- Its cover includes fibreglass components, metal, plastic, rubber, and nylon parts
- This can be availed at the time of purchase of a new policy or renewal.
- The number of claims that can be ensued differs from insurer to insurer.
- Coverage will not be applicable in case of any illicit purposes of the car or illegal/misconduct of the driver.
- It excludes uninsured items such as tires, fuel kits, etc.
- Mechanical breakdowns or regular wear and tear are also excluded.
- Yearly renewal of the zero depreciation cover is mandatory for enjoying the benefits of the policy.
Bumper to Bumper Vs Comprehensive Car Insurance
Purchasing a Bumper to Bumper Car insurance is beneficial in many ways. One of the top ones is the full compensation for your loss at the time of claim settlements. This is one of its major differing points from Comprehensive Car Insurance. Following are some additional differences between the two that make a zero depreciation cover a more attractive choice for your peace of mind and long term money-saving plan,
| Basis | Bumper to Bumper Cover | Comprehensive Car Insurance |
| Premium Rate | It’s relatively higher since it’s an add-on benefit. | The premium amount is lower than the zero depreciation cover. |
| Depreciation Compensation | The compensation amount for repairs includes the depreciation value of the components | The compensation amount excludes the depreciation value of the components |
| Insurance Payment | The insurance company pays in full for the repair/replacement costs of the parts | The insurance company pays partially for the repair/replacement costs of the parts |
| Age of the car | Covers cars aging 5 years or less | Cars aged older than 5 but less than 15 years are covered |
The only disadvantage of this kind of insurance policy is its high cost and limitations on the number of claims as compared to comprehensive car insurance.
Bumper to Bumper or Zero Depreciation Car insurance aims to serve as your go-to backup option when choosing an insurance policy for your car and receive the best benefits. It broadens the cover of your basic car insurance and proves to be a top choice for your car’s protection!
