Are Zero Depreciation Cover and Bumper to Bumper Cover Different?
Updated On Oct 13, 2023
Is there any difference between zero depreciation and bumper to bumper cover? Let's find out!
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According to the Motor Vehicles Act of 1988, having car insurance is now a mandate for all. With car insurance, individuals can protect themselves against any financial loss resulting from any unforeseen accident on the road. You can also enhance car insurance policy benefits with the different add-on covers available. Out of the many add-on covers available, people often get confused about whether zero depreciation and bumper-to-bumper cover are different or not. So, in today’s blog, let us address this common dilemma of car insurance buyers.
Zero Depreciation Cover Vs Bumper-to-Bumper Cover
Wondering what is the difference between zero depreciation cover and bumper-to-bumper cover? Let us tell you that there is no difference between the two as both these add-on covers associated with car insurance policies are often used interchangeably. They are just two names for a car insurance add-on that insures a policyholder against the depreciation cost of his/her insured's car. So, let’s discuss everything about zero depreciation or what is also called the bumper-to-bumper cover.
All About Zero Depreciation Cover Or Bumper-to-Bumper Cover
Your car, just like every commodity, loses its market value with time due to regular wear and tear. This continuous devaluation is known as depreciation. When your car is taken for repairs after damage and you claim coverage for the same, your insurer subtracts the depreciation cost applicable to your car and its replaced parts from the sanctioned claim amount. This is because the replaced old parts had a lower market value than the newly fitted parts.
However, with a Zero depreciation cover, you can get complete coverage irrespective of the depreciation that may affect the different parts of the car. So, in case any of the car parts get affected due to a collision or accident, then even if those parts are worn out, then also there will be no depreciation costs incurred. Thus, a zero depreciation cover is highly beneficial for all car insurance buyers.
Please note that Zero depreciation cover is also popularly known as a bumper-to-bumper cover or nil coverage, so these terms are often used interchangeably.
Is Zero Depreciation Cover Worthy?
The zero depreciation cover is definitely worth it as it offers several benefits such as the following:
- Zero depreciation cover is beneficial for both experienced and amateur drivers so that they don’t have to pay any additional charges in case their car meets an unforeseen accident.
- A zero depreciation cover is especially beneficial for those who have luxury cars as each part of these cars is very expensive and burns a deep hole in the pocket when you take such cars for repair.
- People living in locations that are more prone to mishaps, i.e., theft, calamities, or accidents must take a zero depreciation cover to stay protected against uncertainties.
Thus, owing to all the above benefits, a zero depreciation cover is an extremely cost-effective car insurance add-on as it saves you a chunk of money that would otherwise go into paying the depreciation cost. You can contact us to know more about zero depreciation or bumper-to-bumper cover.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.