Bumper to Bumper Car insurance Policy, also often referred to as The Zero Depreciation Car Insurance policy, was introduced in India in 2009. As the name implies, the policy offers a comprehensive coverage leaving out the "depreciation" factor. That is under bumper to bumper plans depreciation is not subtracted from the coverage for wearing out of any body parts, except for tyres and batteries. When claimed for, the insurance company is liable to pay the entire cost, or almost the entire cost, for any damage caused due to collision or other accidents.
Under the Bumper to Bumper policy, there is 100% coverage for all fibre, rubber and metal parts without deduction of depreciation. The coverage also includes the costs for emergency transports, hotel expenses and key replacements. Zero Depreciation policy is gaining popularity among the present generation car buyers, especially those buying high-end and expensive cars.
How Worthwhile is a Zero Depreciation Car Insurance Policy?
Everything has its advantages and disadvantages and Zero Depreciation policy is no exception. The coverage of these policies is undoubtedly better than comprehensive policies. However, no good thing comes for free. Bumper to Bumper policies offer a greater coverage and hence its cost is much more than standard car insurance policies. The premiums are substantially higher, which makes it a little unreachable for people seeking affordable car insurance. However, for those who do not mind paying high premiums, this policy is desirable as it provides complete peace of mind.
These policies limit the number of claims that you can make in a year. This is done to curb customers from filing claims for small damages just because they do not have to bear the cost.
Bumper to Bumper Car insurance Policies are good for brand new cars as claims are not entertained for cars which are more than 3 years old or have been driven beyond 36,000kms. Benefits are not provided in such cases. Moreover, it is also not a wise idea to shell out higher premium on old cars.
Zero Depreciation Policy Exclusions
- Damages in tyres or car batteries are generally not covered underBumper to Bumper policies unless you take an additional cover or if it is exclusively mentioned in the policy.
- It does not cover damage in the car engine due to water ingression or oil leakage unless an additional cover is taken for it.
- Mechanical breakdown of you vehicle is not covered.
- These policies do not cover the cost of consumables and oil change in car.