Bumper-to-Bumper Car Insurance – Just like every other asset, the value of a car depreciates over time. Since the insurance companies decide the claim amount on the Insured Declared Value (IDV), the depreciation charge is deducted from the claim amount. Here is where bumper-to-bumper insurance comes into play.
Having car insurance is essential because it covers your expenses in the event of vehicle damage. And bumper to bumper, nil depreciation, or zero depreciation is one of the most popular add-on cover types of car insurance policy that prevents the deduction of the depreciation factor from the claim amount.
So, if you have a bumper-to-bumper add-on, you do not need to worry about the depreciation during a claim settlement.
What All Is Covered Under Bumper Bumper Policy?
A bumper-to-bumper car policy cover provides extensive coverage to the policyholders. This cover allows you to enjoy the full claim amount irrespective of the depreciation of the car. The bumper-to-bumper policy comes with the following coverage:
Zero Depreciation Insurance vs Normal Insurance
| Age of two-wheeler | The rate of Depreciation Without Zero Depreciation cover | Rate of Depreciation With Zero Depreciation cover |
| Under 6 months | Nil | 0% |
| 6 months to 1 year | 5% | 0% |
| 1-2 years | 10% | 0% |
| 2-3 years | 15% | 0% |
| 3-4 years | 25% | 0% |
| 4-5 years | 35% | 0% |
| 5-10 years | 40% | 0% |
| Above 10 years | 50% | 0% |
| Part of two-wheeler | Rate of Depreciation Without Zero Depreciation | Rate of Depreciation Without Zero Depreciation |
| Paintwork /Rubber/nylon/ plastic parts, tires and tubes, batteries, and airbag parts | 50% | 0% |
| Fiberglass parts | 30% | 0% |
| Glass parts | Nil | 0% |
Features of Bumper Bumper Add-on Cover for Car
A bumper-to-bumper add-on or zero depreciation comes with the following features:
Shield Against Depreciation
It acts as a shield against the depreciation applicable to your car. When you opt for this add-on cover, no depreciation is charged on your car and its parts except tires, tubes, and batteries which face a depreciation charge of 50%.
Availability Depends On the Car’s Age
This add-on cover is available to you depending on the age of your car. Generally, insurance companies allow cars not more than 5 years of age to avail of this cover.
Limited Number of Claims
This add-on generally comes with a limit on the number of claims that can be made against it. While most insurance companies allow a maximum of 2 claims against the bumper-to-bumper add-on cover, insurance companies like IFFCO Tokio and Royal Sundaram allow an unlimited number of claims against it.
Why Should You Opt For Bumper Bumper Add-on?
The bumper-to-bumper add-on uncomplicated the claim process and makes it easier to receive the complete insured amount without any delay. When you opt for this add-on, the insurance company does not deduct any depreciation charge from your claim amount. You receive the assured claim amount without any complication.
Benefits of Bumper To Bumper Add-on
Following are the benefits that you can enjoy by opting for the bumper-to-bumper add-on cover:
1. Helps You Get Full Claim Amount
If you opt for this add-on cover, no depreciation expense will be deducted by the insurer from your claim amount at the time of claim settlement and you will get the full claim amount for your car.
2. Helps You Save A Lot of Money
This add-on helps you save a lot of money which you may have lost on replacing depreciated parts of your car. Thus, this add-on helps you save a lot of money too!
Who Should Opt For Bumper Bumper Add-on?
Ideally, everyone should add a zero depreciation (bumper to bumper) add-on to their comprehensive or standalone own-damage car insurance policies. However, it should be opted by the following sets of people:
- Those who have purchased a new car
- The ones with expensive cars
- Those whose cars have expensive parts
- New/inexperienced drivers
- People living in accident-prone areas.
What All Is Not Covered Under Bumper To Bumper Add-on?
The bumper-to-bumper policy has certain limitations to the coverage it provides. It does not offer coverage for and in the following scenarios:
- Engine damage due to oil leakage or water ingression.
- Wear and tear of tires, clutch plates, bearings, etc.
- When a Private vehicle is used as a commercial vehicle and vice versa.
- In case of driving under the influence of alcohol or intoxication.
- Driving without a valid license.
- When the car is used for illegal activities.
Conclusion
Just like every other useful thing, bumper-to-bumper car insurance requires a little extra cost. To avail of this cover along with your comprehensive car insurance plan or your standalone own-damage car insurance plan, you have to pay a slightly higher premium. However, the benefits of zero depreciation cover are worth the cost.
Since depreciation due to normal wear and tear is inevitable, the bumper-to-bumper policy serves as a boon in this age of expenditure. It provides perfect protection against the deduction of a substantial portion of the claim money. It is a boon for expensive cars and those residing in accident-prone zones.
Do utilize the comment section to ask your questions related to bumper-to-bumper car insurance.
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