Bumper to Bumper Car Insurance Policy

Bumper to Bumper cover is an add-on cover that provides complete coverage to your car irrespective of the depreciation of its parts. It is also known as Nil Depreciation or Zero Depreciation cover. With this add-on cover, if your car sustains any damage or loss due to an accident or a mishap, the insurance company will not deduct the value of depreciation from the coverage (excluding tyres and batteries). The best part of this cover is that your car insurance will pay all the expenses of the replacement of the car body parts.

Key Features Of A Bumper To Bumper Policy

A bumper to bumper policy, more popularly known as ‘Zero depreciation’ policy is a useful add-on car insurance cover, especially for those who only own a third-party car insurance policy. When you own a bumper-to-bumper policy, you get to claim your car insurance money without any reduction due to the car’s value depreciation over the years since it’s purchase. Following are some of the salient features of a bumper-to-bumper car insurance policy add-on.

• No depreciation on claims: Every year, insurers factor in the depreciation in a car’s market value when they calculate the IDV. IDV is the final amount provided to policyholders when they apply for an insurance claim. With a bumper-to-bumper add-on cover, this depreciation is not considered. Hence, policyholders get to avail of the original IDV calculated at the time of purchasing the policy, without any depreciation.
• Provides comprehensive coverage: This add-on typically covers the repairs to all parts of the car - rubber, fiber, metal and even the minor components, regardless of the nature of damage.
• Multiple claims allowed: Although this is completely dependent on the car insurance company’s policies, policyholders can submit multiple claims within a policy period.
• More suited to younger cars: Cars that are less than five years old are generally considered for a bumper-to-bumper insurance claim.

How Useful Is A Bumper To Bumper Insurance Cover?

It is evident that the inclusion of bumper to bumper add-on cover will bring some advantages that will be over and above the standard car insurance plan. But no benefit comes for free, right. To own this add-on cover, you may have to pay up to a 20% additional premium. It means that you are paying a higher premium already to avoid paying anything during claim settlement in the future. In simple terms, with zero depreciation cover, you are making the payment in advance towards those future costs. It makes the policy affordable and ensures their peace of mind with advance payment. This add-on facility is the best for people with new cars, luxury cars, people driving in accident-prone locations, new or inexperienced car drivers, and so on.

Bumper to Bumper Cover: Inclusions

The following is covered under a bumper-to-bumper add-on insurance:

1. Damage to metal, rubber and fiber parts of the car.
2. Repairs/parts replacement without considering the depreciation.
3. Insurance cover for car damage due to natural calamities and man-made accidents/disasters.

Bumper to Bumper Cover: Exclusions

1. Wear and tear components like tyres and batteries.
2. Damage caused by illegal activities or negligence.
3. Costs that go beyond the limits mentioned in the insurance policy.

The benefits of zero depreciation car insurance cover are mentioned below:

1. Increases Coverage: The bumper to bumper add-on cover is beneficial for experienced as well as inexperienced drivers. It enhances the car insurance policy cover to compensate damages or losses of the car sustained in an accident or a mishap.

2. Reduces Repair Cost: The cost of repair arising out of repair or replacement of parts of the insured car is computed without taking the depreciation cost into account. It brings huge benefits for policyholders as it lessens their financial burden to be paid out of pocket.

3. Helps To Save Money: The bumper to bumper cover increases the premium amount of the policy. However, if the insured car gets damaged in an accident, the amount of depreciation will not be taken into consideration while calculating the claim, which makes you get higher compensation, which is generally higher than the add-on premium, which helps you save money.

4. Higher Compensation: With the inclusion of bumper to bumper cover, the amount of the claim is determined without taking the depreciation cost into account. Therefore, it can help you get a higher amount of claims for damages or losses. However, the highest amount of claim that you can get equals the Insured Declare Value and can not surpass that.

5. Peace of Mind: A car insurance policy is designed to give you a layer of protection to policyholders by providing compensation for damage and losses incurred by their cars. It is further strengthened by a bumper to bumper add-on cover that negates the depreciation rate on different parts of the car. It ultimately gets you a higher amount of compensation that brings peace of mind.

Factors Affecting the Premium of Bumper to Bumper Car Insurance Policy

Here are the top factors that will impact the premium of your bumper to bumper add-on cover:

1. Age of the Car

Since the bumper-to-bumper add-on cover is related directly to the depreciation which is applicable with the age of the insured car and its parts, hence, your car’s age play a vital role in determining the premium for your add-on cover.

2. Model of the Car

When it comes to car insurance, the model and variant of a car is also significant as the cost of its parts affects the repair bill, IDV, etc. Hence, the type of car plays an important factor in determining the premium of the bumper to bumper add-on cover.

3. City of the Car

Every city brings some opportunities and risks with it. Hence, in car insurance, the premium of the standard plan and the additional premium of bumper to bumper cover depends on the city you drive your car in.

How To Buy Bumper-to-Bumper Car Insurance Online?

There are several ways of purchasing a bumper-to-bumper car insurance online. You may visit the car insurance company’s official website or visit InsuranceDekho’s homepage for the same.

Steps to buy a bumper to bumper add on cover through InsuranceDekho:

1. Go to Insurance Dekho’s homepage. Under Insurance, hover over car insurance > Zero depreciation cover.
2. Look for Zero Depreciation Plans. Under the section, select an insurance company.
3. Enter your car’s registration number to get quotes.

Difference Between Comprehensive And Bumper to Bumper Car Insurance

Here are some differences between bumper to the bumper cover and a comprehensive car insurance plan that you should know:

Bumper to Bumper Cover vs Normal Car Insurance

Let's understand what difference bumper to bumper cover brings into a normal car insurance policy.

How Bumper to Bumper Car Insurance Cost Is Decided?

The following factors are considered while calculating the cost of a bumper-to-bumper car insurance:

1. Make and model of the car.
2. Year of manufacture of the car.
3. Geographical location of the car owner.

Limitations of Bumper to Bumper Cover

The bumper to bumper cover also holds some limitations. These are things or situations for which it does not provide coverage:

• If the person is caught doing illegal driving
• If the policyholder drives without a driving licence
• If the private car is being used as a commercial vehicle
• Engine damages incurred due to water ingression or oil leakage
• Damages like wear and tear of bearings, clutch plates, tyres, and so on
• Driving the car under the influence of alcohol or other intoxicating substances.

Does Bumper to Bumper Insurance Cover Everything?

Many people think buying a bumper to bumper cover will make them get complete coverage. Although you pay an additional premium to opt for this add-on cover still does not give coverage to some aspects of the claim. Some of which are as follow:

• No coverage for car parts of rubber, plastic, nylon and batteries. However, a minimum of 50% depreciation is computed before the insurer settles the claim.
• The car parts of fibreglass are depreciated by 30% and could not avail the complete coverage unlike metal parts
• Wooden parts of the insured car will get a 5% depreciation in the first year which increases to 10% in the second year, and so on.