Bumper-to-bumper insurance

Know the benefits of having a bumper-to-bumper insurance. Understand how it helps you to stay fully covered against damages.
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Know the benefits of having a bumper-to-bumper insurance. Understand how it helps you to stay fully covered against damages.
Get Quote
3 mins
30 July 2023

Bumper-to-bumper insurance, also known as zero-depreciation insurance, is becoming increasingly popular insurance in India.This insurance policy basically gives full coverage for the depreciating parts of the car like rubber, fibre, and metal parts. Bumper-to-bumper car insurance covers even covers the repair cost of expensive spare parts. This policy proves beneficial, especially for high-end, or luxurious car owners, as it ensures one gets maximum financial coverage for the car damages.

Read on to know in depth about the bumper-to-bumper car insurance in India.

What is bumper-to-bumper car insurance?

Bumper-to-bumper insurance is an add-on cover that gives you complete coverage for your vehicle without deducting the vehicle’s depreciation value. So, in case your vehicle incurs damages from accidents, theft, or fire, the insurer will pay the entire sum insured without deducting the depreciation value.

Basic car insurance policies do not cover the full cost of vehicle repairs in case of damage. The insurance company deducts a depreciation charge from the Insured Declared Value (IDV) of the car when settling the claim on regular car insurance policies. Bumper-to-bumper insurance covers rubber, fibre, and metal parts.

With bumper-to-bumper insurance, the insurance company covers the entire repair cost without deducting any depreciation. Thus, this type of insurance becomes an excellent add-on cover for car owners.

Know further how a bumper-to-bumper car insurance benefits you.

How does a bumper-to-bumper insurance cover benefit?

The bumper-to-bumper car insurance proves beneficial for car with maximum age of five years. Bumper-to-bumper insurance offers several advantages over and above the regular insurance policies. This policy covers minor damages that may not get covered under regular policies. This policy enhances the claim amount in comparison to traditional car insurance policies. Moreover, since this policy covers the entire cost of repairs, you do not have to pay any out-of-pocket expenses for the car damages.

Key features of bumper-to-bumper car insurance

Here’s a quick overview of the features of bumper-to-bumper insurance

Features

Specifications

Policy type

Add-on cover

Coverage limit

Full coverage up to the sum insured without any deduction of depreciating value.

Parts covered

Fibre, rubber, metal parts and more.

Eligibility

New cars or cars up to 5 years old


Here’s what a insurance policy covers and does not cover.

  • Bumper-to-bumper car insurance covers fibreglass component, which accounts to 30% deduction value on regular car insurance
  • It also covers rubber, plastic parts, batteries, which account to 50% deduction value on a car insurance policy

Exclusions of bumper-to-bumper insurance

Here’s what a bumper-to-bumper insurance does not cover.

  • It does not cover normal wear and tear of the vehicle, or any uninsured peril
  • It will not cover vehicles older than five years
  • It does not cover vehicles used for commercial purposes

To know more about the inclusions and exclusions, you must read the policy document carefully when purchasing.

Benefits of bumper-to-bumper car insurance?

The advantages offered by the bumper-to-bumper car insurance add-on cover include:

Get maximum coverage

You get coverage for the entire cost of repairs without the deduction of any depreciation parts. It also covers the minor damages, like small scratches or dents, increasing the overall coverage of your insurance policy.

Get higher claim settlement

Car insurers usually settle the claims deducting the car’s depreciated value from the final claim amount. This results in lower payouts for you. With bumper-to-bumper insurance, you get the actual repair cost, resulting in a higher claim settlement amount.

Save on out-of-pocket expense

Bumper-to-bumper insurance eliminates any out-of-pocket expenses that the car owner may have to incur otherwise. Since, the policy covers the entire cost of repairs, it saves you spending extra on the car damages out-of-your-pocket.

Factors impacting the premium of bumper-to-bumper insurance 

The premium of the bumper-to-bumper car insurance varies depending on various factors. The following are a few factors that determine the policy premium:

Car’s age

Car’s age plays a vital role in determining the premium of car insurance policy. As, bumper-to-bumper insurance covers car’s depreciation values, the car’s age is a major factor affecting the premium. Also, you must note, bumper-to-bumper car insurance covers cars with maximum age of five years. Check with your insurer when buying the policy to know your car’s eligibility.

Car’s model

The model and variant of the car also plays a significant role in determining the car insurance premium. A luxury car model will have a higher premium than a non-luxury car because of more expensive spare parts and labour costs.

Location

The premium likely varies from city to city, considering the traffic situations and higher chances of accidents in cities.

How to buy bumper-to-bumper car insurance online?

With online facility, buying car insurance policies have become convenient. Here’s a step-by-step guide to help you buy a bumper-to-bumper insurance online.

Step 1: Visit the website of any trusted insurance provider.
Step 2: Select the ‘Car Insurance' option.
Step 3: Enter your car's make and model, the year of purchase, and the current value.
Step 4: Choose the ‘Bumper-to-Bumper' insurance add-on cover.
Step 5: Compare the policies and premiums of various insurers and select the policy the best that suits your needs.
Step 6: Make the payment through any of your preferred payment modes.

Difference between bumper-to-bumper insurance and comprehensive car insurance

Here’s a quick view on what makes bumper-to-bumper or zero depreciation insurance different from comprehensive car insurance.

Parameters

Zero depreciation/Bumper-to-bumper car insurance

Comprehensive car insurance

Policy type

Add-on cover

Comprehensive policy

Coverage

Covers repair cost of depreciating parts if any damaged due to accident, theft, or fire.

Covers repair cost of damages excluding the depreciating parts if damaged due to accident, theft, fire, or any other mishap.

Age of the car

You can avail the add-on cover for cars with maximum age of five years.

You can avail the policy for cars up to 15 years or more age, depending on the insurer’s terms and conditions.

Type of cars

All

All


Overall, bumper-to-bumper insurance proves beneficial and a must-have add-on cover for car owners. It ensures you get complete financial security at the time of need. Choose the best policy that suits your needs and budget by comparing the car insurance policies online from different insurers.

Frequently asked questions

How to file a claim for bumper-to-bumper car insurance?

The process for filing a claim for bumper-to-bumper car insurance is the same as filing claims for regular car insurance policies. You need to inform the insurance company about the damages caused to your car and submit all the relevant documents. You need to provide a copy of policy certificate, registration certificate, and your driving licence. The insurance company will then evaluate the claim and settle it accordingly.

Should I make a claim for bumper-to-bumper insurance for scratches caused to the car?

Yes, you can make a claim for scratches caused to the car under a bumper-to-bumper insurance policy. This policy offers comprehensive coverage for all types of damages, including minor scratches.

Should I buy a bumper-to-bumper car insurance for used cars?

Yes, you can buy a bumper-to-bumper car insurance policy for used cars as well. However, the premium of your policy may depend on the age and condition of your car.

Can I raise a claim on bumper-to-bumper insurance for dents caused to my car?

Yes, a bumper-to-bumper insurance policy covers dents caused to your car as well. This policy offers comprehensive coverage for all types of damages, including minor dents.

Does bumper-to-bumper insurance cover third-party damages?

No, bumper-to-bumper insurance only covers damages caused to your insured vehicle. It does not offer third-party insurance.

Who is eligible for bumper-to-bumper insurance?

If you have bought a new car, you must buy a bumper-to-bumper insurance. Also, owners of cars up to 5 years can buy this add-on cover.

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