29 May 2020
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Since most of us were children, we have dreamed of having our own cars and driving to work, to the theatres, with our friends and even heading on long drives alone or with a special someone. This dream transitioned towards reality the day we got our first learner’s license and then our driving license. As we began working, our dreams of owning a car soon became a reality. 

Before you take off on this dream though, remember that there are a few things you will need to be vigilant about before you start driving yourself and your friends around town. One of the mandates of driving on Indian roads is that you must have car insurance in place. While it is compulsory to have third party insurance which protects you against any liability, it is always best to own a bumper-to-bumper insurance policy which ensures that you and your vehicle have adequate protection. If price is a concern for you, it no longer needs to be when you opt for car  insurance, available on Finserv MARKETS. Not only do premiums start at only Rs. 2,072 a year, but you also get access to round-the-clock assistance for your car and can have your claims settled quickly by easily registering your claim online in just 4 steps.

What is Bumper to Bumper Car Insurance?

Bumper to bumper car insurance refers to protection for every square inch of your car. This kind of insurance policy is often an add-on with a comprehensive insurance policy and is also known as zero depreciation cover because it ensures that depreciation is not factored in as a cause by the insurer while deciding how much of your claims need to be settled by them. 

A bumper-to-bumper car insurance is a boon for new drivers who are not very experienced with driving, and even for owners of luxury supercars which have expensive spare parts. If you are the kind of person who worries about even the tiniest dent on your car, you should probably purchase a bumper-to-bumper car insurance policy.

Benefits of Bumper to Bumper Car Insurance

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

  1. All car insurance policies pay out only the claim amount after setting aside a certain sum for depreciation. Depreciation refers to the normal wear and tear of a machine that occurs in its daily usage, and its monetary value can thus result in a considerable sum 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, a bumper to bumper car insurance ensures that your insurer has set aside the depreciation value and settled your claims for the car in terms of its original value. 

  2. Since it enhances the coverage that your car is provided with, it significantly decreases your expenses on your car.

  3. 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 a Motor Insurance, available on Finserv MARKETS, you can get access to a bumper to bumper insurance add-on at a nominal cost. Its premiums start from only Rs. 2,072 a year and you also get access to a cashless claim settlement facility to ensure you experience a smooth car insurance claim process.

Difference between Comprehensive and Bumper to Bumper Insurance

Refer the table below to understand the difference between comprehensive car insurance and bumper to bumper cover.

 

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.

What Happens If You Don’t Have Bumper to Bumper Insurance?

When there is a mishap involving your precious motor vehicle, the first thing that will come to your mind is claiming on your car insurance policy. At times, people think 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 for add-on benefits that are not included in your existing car insurance plan. Therefore, you may not receive the desired compensation during claim settlement.
  • You need to understand that the difference between the current market value of the new component of your vehicle and the depreciated value of these components will have to be paid from your pocket. 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.

Factors to Consider Before Choosing a Bumper to Bumper Insurance

There are a few factors you must consider before choosing a bumper to bumper insurance policy. Read on to learn what these are.

  • Check the number of claims provided by your insurer in a year, as several insurers restrict this so that people don’t file claims for every dent in their car
  • The premium for a bumper to bumper car insurance is slightly higher than that for other types of car insurance, but its benefits are also significantly higher
  • Since it is only available for cars that are 5 years or younger, you might need to move fast if you are keen on getting a bumper to bumper car insurance policy.

Buying Bumper to Bumper Car Insurance Online

You can purchase a bumper to bumper car insurance online in India. The process is similar to that of buying comprehensive car insurance policy from your insurer. However, the policy difference is that since bumper to bumper is an add-on cover, you have to add it over and above your basic plan during the purchase. Look at the steps below to get an overview of the same –

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

Bumper to Bumper Insurance Exclusions

While there are many benefits with a bumper to bumper car insurance policy, there are some situations under which this policy cannot help you.

  • Claims will not be processed if the car has been reported for any illegal or unethical movement
  • A private vehicle being used for commercial purposes is not eligible for claims
  • If the driver was found to be under the influence of drugs or alcohol when the car was damaged, claims will not be settled
  • Claims cannot be settled unless all the vehicle papers are complete and in place.

Bumper to Bumper Insurance for Used Cars

Ideally, bumper to bumper insurance is recommended for new cars that demand higher maintenance. However, if the used car that you are planning to purchase is not more than five years old, then buying bumper to bumper cover on your comprehensive car insurance plan is a worthy choice. Otherwise, there is no point in investing in this cover as it will only increase your overall car insurance premium amount. Besides, you are worried about the cost of your comprehensive car insurance plan, use the car insurance calculator to determine the same.

Conclusion

A bumper to bumper car insurance policy offers protection for a number of cases and situations in which your car or even you may sustain damages and harm. For one of the best policies, you can opt for car insurance, available on Finserv MARKETS, which protects you against incurring significant expenses in case of damage. You can benefit from features such as cashless claim settlement, extensive coverage, add-on benefits, 24x7 assistance, and more.

You can read more about car insurance plans by visiting Finserv MARKETS website.

Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!

FAQs on Bumper To Bumper Car Insurance

  • ✔️How much does it cost to replace the bumper of a car?

    On average, the cost of bumper replacement is Rs. 10,000. If any other components are damaged alongside, the overall damage repair cost will simultaneously increase. Therefore, it is best to have a bumper to bumper insurance on your existing comprehensive car insurance plan.

  • ✔️How soon do I need to report an accident?

    An accident needs to be reported as soon as possible, within the time frame as provided by your insurer. Car insurance claims may otherwise be liable to rejection.

  • ✔️Can bumper to bumper insurance claims be raised for damaging my vehicle?

    Yes, all damages to your vehicle can be claimed under the bumper to bumper car insurance policy.

  • ✔️Does bumper to bumper insurance cover wear and tear of tyres and tubes?

    No. The bumper to bumper insurance cover will not cover the repair cost for wear and tear of your car’s tyres and tubes.