Machines are subject to wear and tear. It can be either due to routine operation or even due to efflux of time. Whatever is the reason, its value depletes as time passes by. Cars are no exception to this. A machine being the heart of it, depreciation is one prominent factor that impacts it.
What is the effect of depreciation on your car insurance claim?
The impact of depreciation is not just seen at the time of selling your car, but also when making an insurance claim. This is due to the different components used in making one. Glass, plastic, fibre spares, and even the machines are all subjected to depreciation. Hence, any repairs using a four wheeler insurance policy witnesses the impact of depreciation.
As a result of depreciation, the compensation offered at the time of claim is lowered. The insurance company considers the duration from the time it has left the factory floor to the time of claim for the period of calculating depreciation. The balance cost is required to be borne by you. Here’s when a bumper-to-bumper insurance comes handy.
What is a bumper-to-bumper insurance?
Bumper-to-bumper insurance, commonly known as zero-depreciation or nil depreciation cover, is an add-on feature that can be opted with a comprehensive car insurance policy. With this add-on, any and all effects of depreciation from your insurance claim are excluded while calculating the compensation amount. Therefore, increasing the pay-out of your claim application. * Standard T&C Apply
What are the benefits of opting for a bumper-to-bumper insurance?
A bumper-to-bumper policy is not your standard comprehensive plan and hence the benefits are more than the ordinary plan. For standard policies, you are required to pay higher out-of-pocket expenses, but not when you have a bumper-to-bumper cover. The enhanced pay-out ensures minimal out-of-pocket expense is required by way deductibles.
Next, it covers majority of the parts of your car and hence you need not worry much about what is covered and what isn’t. Further, the investment cost of the insurance policy almost becomes nil when compared to the benefits it offers.
However, you must keep in mind this add-on feature is not bundled with a standard comprehensive plan. Hence, it impacts the car insurance prices. Also, the feature is available for cars up to five years of age. Older cars cannot benefit from such insurance coverage.
Who can benefit from buying a bumper-to-bumper insurance plan?
Bumper-to-bumper insurance is best suited if you have bought a new car or a relatively new yet used car. Generally, cars older than five years cannot avail the coverage. Further, luxury car owners can avail maximum benefit since the cost of repairs for their cars are sky high and an add-on which even compensates for depreciation can be of great help. A bumper-to-bumper plan is also recommended for new and inexperienced drivers. Damages are a common sight when learning to drive a car and such bumper-to-bumper coverage comes handy.
These are some ways how a bumper-to-bumper cover provides comprehensive coverage. Make sure to check if your policy has such add-on at each insurance renewal for maximum benefits from your insurance policy. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.