Bumper to Bumper Car Insurance

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Bumper to bumper car insurance is also known as “Nil depreciation cover” or “Zero depreciation cover”. Any damages to the car caused by an accident are completely covered under this insurance despite the depreciation of its parts. It is primarily suited to car owners who fall under the categories listed below.

New car owners
High-end luxury car owners
Inexperienced or new drivers
Car owners who frequently drive in accident-prone areas.

How to Purchase Bumper to Bumper Car Insurance Online?

The process to purchase car insurance bumper to bumper is similar to that of buying a comprehensive plan from your insurer. However, since bumper to bumper is an add-on cover, you have to add it over and above your basic plan during the purchase in the following way:

Step 1: Visit the insurer’s website and go to the “Car Insurance” section.
Step 2: Enter your personal and vehicle details.
Step 3: Select comprehensive car insurance coverage.
Step 4: Select the bumper to bumper add-on cover along with other necessary rider benefits.
Step 5: Review the policy and coverage details before proceeding to pay the premium.
Step 6: Make the premium payment online.
Step 7: The policy with bumper to bumper insurance will be issued shortly.

Features & Benefits of Bumper to Bumper Car Insurance Policy

Features

Here are some of the key features of a zero depreciation or bumper to bumper car insurance policy.

The parts covered under the bumper to bumper insurance policy include nylon parts, fibreglass components, plastic, and rubber parts.

This add-on coverage can be availed while purchasing or renewing your car insurance policy.
The zero depreciation policy allows you to easily claim the full amount in case of any damage to the car, unlike a standard policy which includes 0-40% depreciation rates.
This nil depreciation cover is ideal for care bought within the last 5 years.
Bumper to bumper insurance policy allows you to make a limited number of claims that vary based on the insurer you choose.
Any uninsurable peril (event with a high risk of occurrence) or normal wear and tear is not covered under this policy.
You must renew the insurance every year to enjoy the benefits associated with a zero depreciation policy.

Benefits

With any kind of car insurance, you are privy to certain benefits. However, bumper to bumper insurance brings along a set of additional benefits that are not available with other kinds of policies. Read on to learn more about them:

Depreciation Isn’t Considered

All car insurance policies pay out only the claim amount after setting aside a certain sum for depreciation. Here, depreciation refers to the normal wear and tear of a machine that occurs during its daily usage, and its monetary value lowers regardless of how well you maintain your car.

As a result, you are probably going to end up losing a hefty amount while applying for any kind of claim with your vehicle in case of an accident. However, car insurance bumper to bumper ensures that your insurer has kept away the depreciation value and settled your claims for the car in terms of its original value.

Maximises Insurance Coverage

Since it enhances your car’s existing coverage, it significantly decreases any out-of-pocket expenses and offers extensive protection to your vehicle!

Secures Your Finances

A bumper to bumper car insurance policy significantly controls the expenses that would be incurred as a result of the depreciation cost of the insured vehicle.

When you opt for motor insurance available on Bajaj Markets you can get access to a car insurance bumper to bumper add-on at a nominal cost. You also get access to a cashless claim settlement facility to ensure you experience a smooth car insurance claim process.

What's Covered/Not Covered Under Bumper to Bumper Insurance?

The table below showcases what’s covered and not covered under the bumper to bumper car insurance policy.

Items	Covered/Not Covered
Cars above 5 years of age	Not covered
Engine damage due to water ingression or oil leakage	Not covered
Body damages	Covered
Replacement/repair of the depreciated car parts	Covered
Regular wear and tear and damage to tyres, tubes, clutch plate, bearings, and batteries	Not covered
Parts made of rubber, fibreglass, plastic, nylon and metal	Covered
Damages due to mechanical breakdown	Not covered
Damage to accessories	Not covered
Private cars used commercially or vice versa	Not covered
Driving without a valid licence during car accident	Not covered
Driving under the influence of alcohol or other intoxicating substances	Not covered

Difference Between Comprehensive and Bumper to Bumper Insurance

Let’s understand the difference between comprehensive car insurance and bumper to bumper cover with the below table:

	Comprehensive Car Insurance	Bumper to Bumper Cover
Definition	The policy provides extensive coverage. It covers third-party liabilities and damage to your vehicle as well.	It is an add-on cover provided over and above your existing comprehensive car insurance policy.
Premiums	Standard comprehensive policy premium	Standard car insurance policy premium + Add-on cover amount.
Coverage	The policy covers old vehicles.	The cover is not available for vehicles that are five years old or above.

Bumper to Bumper Cover vs Normal Car Insurance

Car’s Age	Rate of Depreciation Without Zero Depreciation Cover	Rate of Depreciation With Zero Depreciation Cover
<6 months	0	0%
6 months-1 year	5%	0%
1years-2 years	10%	0%
2 years-3 years	15%	0%
3 years-4 years	25%	0%
4 years-5 years	35%	0%
5 years-10 years	40%	0%
>10 years	50%	0%

Car’s Parts	Rate of Depreciation Without Zero Depreciation Cover	Rate of Depreciation With Zero Depreciation Cover
Rubber/Plastic Parts/Nylon/Paintwork, Tubes and Tyres, Airbag parts and Batteries	50%	0%
Glass parts	0	0%
Fibreglass parts	30%	0%

Drawbacks of Bumper to Bumper Car Insurance

While a bumper to bumper insurance policy offers several benefits to car owners, it has a set of limitations as well. Listed below are some of the cases where the coverage is not applicable.

A person caught driving illegally would not be able to enjoy the benefits of this policy.
Any policyholder driving without a licence would not be able to claim the insurance.
If your privately owned car is being deployed as a commercial vehicle, any damages to the vehicle would not be covered under the bumper to bumper insurance policy.
Any damages to the engine caused due to water leakage or any sort of water ingression are not covered under this policy.
Damages caused due to normal wear and tear of tyres, bearings, clutch plates, etc. are also not covered.
Any damages to the car when the car owner is caught driving under the influence of alcohol or any intoxicating substances.

Factors Affecting Bumper to Bumper Car Insurance Policy Premium

The premium you pay for the bumper to bumper car insurance policy is affected by the following factors.

Car model- One of the major factors that decide the insurance premium you pay for the car is the model of your car. The cost of car parts which affects the repair bill is dependent on the model or variant of the car and helps determine the premium you have to pay for bumper to bumper car insurance policy.

City of the car- There are several benefits and risks associated with every city which defines the premium you pay for the insurance policy. Hence, the premium for a standard insurance policy along with add-ons like zero depreciation/bumper to bumper insurance depends on the city where you drive your car.

Age of the car- Bumper to bumper car insurance or zero depreciation add-on cover is directly linked to the depreciation of the car and its parts hence, the age of your car is crucial when calculating the insurance premium.

What Happens if You Don't Have Bumper to Bumper Insurance?

In the event of an unfortunate mishap involving your valuable motor vehicle, the first thing that will come to your mind is raising a claim under your car insurance policy. At times, policyholders believe that their car insurance plan will compensate for the entire damage incurred. However, in reality, the scenario can be a little different sometimes.

Here’s why:

You are claiming add-on benefits that are not included in your existing car insurance plan. Therefore, you may not receive the desired compensation during the claim settlement.
You need to cover certain expenses as there is a difference between the current market value of new car parts and the depreciated value of these components. The insurer covers the remaining amount.
The depreciation amount can form a significant part of your sum insured amount.

To avoid getting less or unsatisfactory compensation when claiming on your car insurance policy due to depreciation, get a zero depreciation cover on your comprehensive car insurance plan.

How to Claim Bumper to Bumper Insurance

Since bumper to bumper insurance provides 100% coverage, it is vital to ensure that no depreciation cost is considered by the insurer while calculating the IDV. The insurance claim process is simple just like a comprehensive insurance claim. The steps to claim the insurance are listed below.

Inform the insurance company after the accident
Register the claim
Send the vehicle for damage assessment.
Ensure that depreciating cost is not added by the insurer.
Get your vehicle repaired at the garage listed on the insurer’s network to enable direct settlement.
Sign the documentation and drive your car home.

Documents required to claim bumper to bumper Insurance

You would need the following documents to file the claim.

Filled and signed claim form
Insurance policy
Registration certificate of the car
Driving incense
Copy of filed FIR
Estimated bill of the repair
Bills and payment receipts

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FAQs

The number of claims that you can raise under bumper to bumper insurance varies from one insurance provider to another. Hence, it is crucial to check the number of claims admissible while purchasing such a cover.

No. Bumper to bumper insurance is an add-on cover that ensures you get the complete claim amount without considering the depreciation rate. Whereas, comprehensive insurance is a plan that offers all-round coverage against various mishaps on the road.

The bumper to bumper insurance claim process is similar to any comprehensive car insurance policy. Since it is an add-on insurance that entails zero deprecation so you need to ensure that the insurer does not add any depreciation cost.

The number of times you can claim the insurance varies based on your insurance company. However, most insurers allow two claims during the policy period in the case of bumper to bumper insurance.

The bumper to bumper insurance does not provide any coverage for batteries, tyres, and tubes of the car and their wear and tear.

Follow these steps to make the claim:

Apprise the insurer at the earliest in case of any accident or damage to register the claim.
Vehicle needs to be sent for damage assessment and estimation. Ensure that you get full compensation.
The expenses are settled with the insurer directly if the car is taken to the network garage.
Once the car is repaired. Sign the documentation and take your car home.

Most insurers allow you to claim the bumper to bumper insurance only twice during the policy period hence, it is not recommended to claim it for small damages such as scratches. Allowing you to claim for major damages in the future, if any.

Bumper to bumper insurance does not provide any coverage for the following: