SPONSORED CONTENT. Are Zero Depreciation Cover and Bumper-to-Bumper Cover Different?

When it comes to insurance products, certain plans or policies have multiple names which are often used interchangeably, leading to confusion. One such common confusion is about zero depreciation cover and bumper-to-bumper cover in car insurance. So, are both these car insurance add-on covers the same? Let’s find out.

Are Zero Depreciation Cover and Bumper-to-Bumper Cover Different?

No, bumper-to-bumper cover and zero depreciation cover in car insurance are not different. These are just different names for the same car insurance add-on cover. This add-on protects you from the depreciation value of your insured car.

What isZero Depreciation Cover?

Your four-wheeler, like any other commodity, loses its value over time due to wear and tear. This reduction in value is called depreciation. Generally, when you file a claim against your car insurance, your insurance provider reduces the depreciation value of your car from the claim amount. This is where a zero depreciation cover can help you.

Zero depreciation cover or the bumper-to-bumper cover, is a car insurance add-on cover that you can choose to buy along with your comprehensive car insurance policy. If you purchase this add-on, the insurance provider will not factor in any depreciation value on the car’s parts while calculating your car’s value for claim settlement, thus allowing you to get your complete claim amount.

Benefits of Zero Depreciation Cover in Car Insurance

Zero depreciation cover in car insurance brings along a set of additional benefits that are not available under the regular comprehensive car insurance policies. Read on to learn more about them:

 ●   Higher Claim Amount

Car insurance providers pay out the claim amount only after deducting the depreciation value of the car. However, with a bumper-to-bumper cover, you are ensured that the insurance provider will consider the full value of the car during claim settlement.

●     Maximises Insurance Coverage

Since this car insurance add-on enhances the coverage of your existing car insurance policy, it reduces your out-of-pocket expenses significantly in case of any mishap.

●     Secures Your Finances

A bumper to bumper car insurance policy significantly controls the expenses that would be incurred as a result of the depreciation cost of the insured vehicle.

●     Greater Resale Value

You can get a better resale value for your car if you have an active car insurance plan with zero depreciation cover.

What is Covered Under Zero Depreciation Cover?

The bumper to bumper cover, or zero depreciation add-on, provides coverage for the following:What is Covered Under Zero Depreciation Cover?

The bumper to bumper cover, or zero depreciation add-on, provides coverage for the following:

• Covers nylon and plastic parts, rubber parts, fibreglass components, etc. against deduction due to depreciation.
• Protects new cars or four-wheelers that are not older than five years.
• Ensures that the full claim amount is offered during settlement.

What is Not Covered Under Zero Depreciation Cover?

While there are many benefits offered by the zero depreciation cover, some situations where this add-on cannot help you are as follows:

• If the vehicle has been reported for any illegal or unethical movement.
• If the private car is being used for commercial purposes.
• If the car’s driver was under the influence of intoxicants when the car was damaged.
• If all the necessary vehicle-related papers are not complete and in place.

Who Should Buy a Zero Depreciation Cover?

You should opt for a zero depreciation cover if you:

• Are an owner-driver with new cars
• Purchase luxury cars
• Are a new or inexperienced driver
• Live in locations that are more prone to thefts, calamities, road accidents, etc.
• Have a car with expensive spare parts

How Much Will Zero Depreciation Cover Cost You?

The Zero Depreciation Cover can be easily added to your basic comprehensive car insurance plan. As a simple add-on cover, it generally costs about 10 to 15 percent of your primary insurance premium amount. However, it is worth spending this amount as it helps you get holistic financial protection for your four-wheeler.

How Can You Purchase Zero Depreciation Cover Online?

The process to buy a bumper-to-bumper cover is similar to that of purchasing a comprehensive car insurance plan from your insurance provider. However, since this is an add-on cover, you will need to add it over and above your basic car insurance plan during the buying process. Here are the steps you will need to follow:

tep 1: Visit your insurance provider’s official website and move to their ‘Car Insurance’ section.

Step 2: Provide all your necessary personal and car details.

Step 3: Choose the ‘Comprehensive Car Insurance’ option.

Step 4: In the ‘Add-on Covers’ section, select the zero depreciation add-on cover along with any other necessary add-ons.

Step 5: Go through the policy and coverage details and proceed to pay the insurance premium.

Step 6: Pay the car insurance premium online.

That’s it! Your comprehensive car insurance policy with zero depreciation cover will be issued to you shortly.

Final Takeaway

If you have purchased a four-wheeler that is less than five years old, it is advisable to opt for the zero depreciation or bumper-to-bumper add-on cover. This is because when car insurance claims are concerned, the zero depreciation add-on cover helps protect the car from losing value. This means that with an active zero depreciation cover, you can maximise your car insurance claim. However, you must note that the bumper-to-bumper car insurance add-on is available only with comprehensive car insurance plans. You will not be allowed to opt for this benefit under third-party car insurance plans.

So, if you are considering opting for this add-on, do not forget to compare all the various plans available online before buying one that is best suited for your needs.

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