Bumper to Bumper Car Insurance

The Practical Guide on Bumper to Bumper Car Insurance Policy

Auto Insurance

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 the 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 To Bumper Policy?

Bumper to bumper car policy cover provides extensive coverage to the policyholders. This cover gives you the opportunity 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 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 airbags parts 50% 0%
Fiberglass parts 30% 0%
Glass parts Nil 0%

Features of Bumper To 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 on your car. When you opt for this add-on cover, no depreciation is charged on your car and its parts except tyres, 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 this cover.

Limited Number of Claims

This add-on generally comes with a limit on the number of claims which can be made against it. While most of the 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 To Bumper Add-on?

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 which 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 To 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 definitely opted by the following sets of people:

  1. Those who have purchased a new car
  2. The ones with expensive cars
  3. Those whose cars have expensive parts
  4. New/inexperienced drivers
  5. People living in accident-prone areas.

Also Read: Things to Keep in Mind While Applying for a Car Loan

What All Is Not Covered Under Bumper To Bumper Add-on?

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.

Bottom Line

Just like every other useful thing, the bumper to bumper car insurance requires a little extra cost. To avail 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 from 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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