What is bumper to bumper insurance? – Bumper To Bumper Insurance Meaning
Many people must be hearing the name of Bumper to Bumper Insurance for the first time. Today we are going to give you detailed information about what is bumper to bumper insurance or what it means.
Many people buy a new car for themselves after a lot of thinking and investing a huge amount. But sometimes unfortunately it is quite common to damage the car due to a minor accident. In such a situation, the vehicle needs to be repaired and many types of expenses are involved in this. In such a situation, a car insurance does its job and covers the loss of the car and the people involved in the accident.
According to the Motor Vehicle Act in India, it is mandatory for all vehicles to have insurance. There are different types of Motor Vehicle Insurance available today, which include many types of coverage. Bumper To Bumper Car Insurance is also an insurance policy, which gives complete coverage to your car. If you want to know what is Bumper To Bumper Coverage and how it is different from other insurance policies, then let us know about it from the beginning.
Contents
1. What is bumper to bumper car insurance? – Bumper To Bumper Car Insurance Meaning
2. Meaning of Zero Depreciation Insurance or Bumper to Bumper Cover – Zero Depreciation Insurance Meaning
3. Benefits of Bumper To Bumper Car Insurance
4. Bumper To Bumper Car Insurance Premium
What is bumper to bumper car insurance? – Bumper To Bumper Car Insurance Meaning
Bumper to bumper insurance is such an insurance, in which the vehicle gets full coverage even after the depreciation of the parts of the vehicle. This insurance was first started in India in 2009.
Depreciation is the value of something that usually decreases with use or time. Before settlement of claim in a comprehensive insurance plan, the value of the parts of the vehicle is depreciated by the insurance company.
But in Bumper to Bumper Insurance, the Depreciation Value of the parts of the vehicle is not deducted from the coverage by the Insurer on the damage caused due to an accident. Although it does not apply to some parts like engine, battery, tyre, tube, glass of the car. Apart from this, there is also some limit for making maximum insurance claim in a year.
Meaning of Zero Depreciation Insurance or Bumper to Bumper Cover – Zero Depreciation Insurance Meaning
Bumper to bumper insurance is also known as Zero Depreciation Cover or Nil Depreciation . Bumper to Bumper Insurance is usually available as an add-on with any general motor insurance or comprehensive insurance plan. With this insurance, the parts of the car get full coverage after the accident.
As time passes, any car gets old. Along with this, the value of different parts of the car also decreases. On making an insurance claim, the insurance company extracts the value of the car and its parts on the basis of depreciation, after which the settlement amount is paid. Therefore, taking Zero Depreciation Cover as an add-on with an insurance plan for a new car is considered a good option.
Benefits of Bumper To Bumper Car Insurance
- For New Car
This insurance is a very good option for new car owners. Many people are worried about the risk of accident of their new car, as well as in many insurance plans, the vehicle does not get full coverage. But with Bumper to Bumper Car Insurance, your new car gets 100% Damage Cover and after any accident your car gets back as new.
- For Luxury Car
Bumper to bumper car insurance is a better option for a luxury car. Due to an accident, a lot of damage can be done to the luxury car and the spare parts of such a car are expensive.
- In accident prone areas
This insurance can be very useful for people who drive in accident prone areas or areas where accidents happen frequently. In this situation Bumper To Bumper Car Insurance gives complete protection to your vehicle from possible damage due to any accident.
- for new driver
For many people who learn to drive in the beginning, it takes some time to get used to better driving on the road. If you have just learned to drive and you do not have much driving experience, then there is a high chance of damage to your new car. In such a situation, the damage can be covered with the add-on of Bumper To Bumper Cover.
- additional coverage
Many insurance companies also include some additional coverage like Roadside Assistance, Towing, Emergency Transportation etc. with their plan with Bumper to Bumper Coverage.
- Bumper To Bumper Car Insurance Premium
With Bumper To Bumper Car Insurance, the premium is slightly higher than any normal insurance plan. Its premium is high because Depreciation is not seen in it and full coverage is given. In this way, with a slightly higher premium, more coverage is also available.
Those who prefer an affordable insurance plan may find the premium to be slightly higher. At the same time, many people want full coverage and are ready to pay a little more premium with the assurance of their mind.
Usually the premium of Bumper To Bumper Insurance depends on some factors, which include Location, Car Age, Model etc. Apart from this, many companies do not provide bumper to bumper insurance add-on for used car or this coverage is available at a higher premium for used vehicles.
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