While buying a comprehensive car insurance policy, it is always better to get an add-on cover called the ‘Bumper-to-Bumper’ cover, also known as Zero Depreciation cover. Let us understand what this add-on cover has to offer to the car-owner.
A standard car insurance policy does not fully cover damage caused to the fibre, metal or plastic parts of the vehicle and, as a result, the costs of repairing or replacing damaged parts made of these materials can be substantial. In fact, the IRDA has fixed the depreciation to be deducted on rubber, nylon and plastic parts and batteries at 50%, on fibre glass components at 30% and on wooden parts, as per the age of the car (5% in first year, 10% in second year, and so on).
As a result of the depreciation, the cost of replacement of these parts makes for a tidy amount of money that the car owner has to shell out from his/her own pocket. This is where the add-on Bumper-to-Bumper or Zero Depreciation cover comes to the rescue, by offering 100% protection in the event of an accident that causes partial or total damage to parts made of plastic, fibre glass, wooden or metal (excl. tyres and battery).
In fact, under the Bumper–to-Bumper policy, some insurance companies also offer cover for the costs of roadside assistance, tow away services, emergency transports, regular maintenance, etc.