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.
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!
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