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.

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 and Exclusions

Before opting for a zero depreciation/nil deprecation/bumper to bumper cover, you should understand what is included and excluded under it:

1. Bumper-to-Bumper cover comprises fibreglass components, rubber parts, nylon and plastic parts.

2. The cover can be added to the plan either during the policy purchase or during the renewal.

3. With this add-on cover, the full amount of the claim can be received, while depreciation of up to 40% is applicable under a standard car insurance plan.

4. This add-on cover is more suitable for new cars up to 5 years of age and can be availed for a limited number of times. However, these conditions may differ from insurance company to insurance company.

5. No coverage is provided for normal wear and tear or uninsured perils with this add-on cover.

6. Damages of uninsured items like tyres, bi-fuel kit, mechanical breakdown, etc., are excluded from this cover.

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?

Bumper-to-bumper car insurance add-on cover can easily be purchased online. One can simply purchase it like a comprehensive car insurance policy. The only difference in the purchase of this cover is that you can include this cover either at the purchase of the policy or at the time of policy renewal. You will have to pay an additional premium to avail of this add-on cover. You can make the payment for its premium online using debit cards, credit cards, net banking, and so on.

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.

Bumper to Bumper Car Insurance Cost

The cost of bumper to bumper add-on cover is a little higher as compared to standard car insurance. The higher premium is charged as it covers every part of your car and does not consider the depreciation value of your replaced car parts while computing the claim. With the addition of this add-on cover, you can get complete coverage for the claim raised. It is recommended despite being available at a higher cost as its premium is marginal when compared to the money which you might have to pay for repair from your pocket under the comprehensive cover.

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.