How often do you feel dejected when, in spite of using a car insurance policy, you aren't getting the all inclusive costs of repairs inside a claim? Often, I bet. Though your comprehensive car insurance policy pays for the damages suffered from your car, the claim settlement is done after making deductions for depreciation of the car's parts. That is why, when you claim, you settle part of the claim from your pockets. Would you like it?
Of course, you don't. But is there a solution? Yes, a Bumper to Bumper policy, also known as a Zero Depreciation Policy, is your solution to this dilemma. What happens it's? Let's discover:
What is Bumper to Bumper policy?
A Bumper to Bumper cover or a Zero Depreciation cover protects the need for your car's parts from the effects of depreciation. Whenever you claim in your Bumper to Bumper policy, the claim paid is not deducted for that relevant depreciation. Instead, you get the entire cost of repairs done to your car's parts. Let's wait and watch how this insurance policy works:
You saved a whopping Rs.6100 on repairs through a Bumper to Bumper cover. Is it not amazing?
Is a Bumper to Bumper cover policy effective?
Well, if you look at the above savings, you would not need any more answers. In the financial perspective, a Bumper to Bumper policy saves a lot of money which may otherwise come out of your pockets. So, a Bumper to Bumper policy is definitely effective. Here are a few reasons to fortify this statement:
- The schedule of depreciation is high in car insurance policies
The rate of depreciation associated with various areas of the car is very considerable also it might end up burning an opening in your pockets. If you don't believe me, discover for yourself. Listed here are the depreciation rates on several parts of your car:
So, you can imagine the proportion of the cost you would need to bear when your car goes for a repair!
- Parts of a new or a luxury car are very expensive
A Bumper to Bumper policy is effective particularly in case of recent cars whose parts are extremely expensive. When you have already invested your savings in purchasing the car, paying the price of repairs out of your pockets appears like a burden. In such cases, a zero depreciation policy is very effective. Moreover, if you're the proud who owns a luxury car or a high-end sedan, meeting the repairs from your pockets could be financially draining. Here is where a Bumper to Bumper cover is essential.
Any more doubt on the effectiveness of the Bumper to Bumper cover? You may also read Are Auto insurance riders worth buying?
Things to remember for any Bumper to Bumper policy
Though a Bumper to Bumper policy provides a extremely effective cover, here are a few things which you should never forget:
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- This policy is generally available for cars not over the age of Five years. For older cars, you can't avail a Bumper to Bumper policy.
- You have to pay an additional premium for choosing a Bumper to Bumper cover. This premium is, usually, 10% to 20% higher than the fundamental premium.
- There is no separate Bumper to Bumper policy. You are able to convert your vehicle insurance plan to a Bumper to Bumper cover by simply deciding on the zero depreciation add-on together with your basic policy.
- There are exclusions with this cover. Normal wear and tear of the car's parts, engine repairs and faults, consequential loss, etc. have no coverage.
- There is a limit towards the number of claims made under a Bumper to Bumper cover through the complete policy tenure. This limit varies across different plans.
So, you've now learned what a Bumper to Bumper policy is, what it really covers and whether it's effective. If you purchase a brand new car or have a high-end car, don't forget to give a Zero depreciation add-on and ensure a greater coverage.
