If you’ve ever shopped for motor insurance, you’ve definitely been astonished at how different insurance premiums are. Basic auto insurance may not cover all of your vehicle’s components. Bumper-to-bumper insurance, on the other hand, will provide total coverage.

What is Bumper to Bumper Insurance, and how does it work?

Before resolving a claim under a comprehensive car insurance policy, the insurance company will deduct the cost of the items being replaced or repaired. The insurance, on the other hand, covers every part of your automobile under bumper to bumper coverage, with the exception of the engine, batteries, tyres, tubes, and glass. The insurer will typically provide this as a “Add-on” to the main policy. A “Zero Depreciation Cover” or “Nil Depreciation Cover” is another name for it. This effectively gives near-total coverage in the event of an accident causing damage to your vehicle. The cost of the replacement parts will not be depreciated by the insurance carrier.

This add-on cover is a great choice, especially for the following automobile owners:

  • Owners of new automobiles
  • Owners of high-end automobiles
  • Owners of their first automobile
  • Owners of inexperienced automobiles
  • Owner of automobiles who live in places prone to automobile accidents
  • Car owners who are concerned about minor dents or bumps should consult a professional.

What is Bumper to Bumper Car Insurance Cover?

It is a type of insurance that provides complete or 100 percent coverage for damages to your car’s metal, fiber, and rubber components. It is an add-on coverage that is not included in a basic auto insurance policy. To add it in your auto insurance coverage, you’ll have to pay a slightly higher cost. This sort of coverage, on the other hand, assures that the insurer does not depreciate the cost of parts before settling the claim. As a result, practically every penny spent on the car’s repair will be returned to you. However, you should be aware that certain parts, including as tyres, batteries, engine damage, and glass, are not covered by this add-on.

Benefits of Bumper to Bumper Car Insurance Add-on:

An accident is indeed never a good thing. Replacing automobile parts or repairing dents and bumps can be very expensive, especially if you have invested a lot of money on your favorite vehicle. Even if you file a claim, you may have to pay nearly half of the total expense out of your own cash. The incorporation of this coverage in your basic automobile insurance policy comes with a number of benefits that benefit you.

For example, if you do not have bumper-to-bumper coverage and file a claim for a repair bill of Rs. 50,000, you may be required to pay nearly half (Rs. 25,000) out of pocket. The insurance provider will pay the full cost of the parts being replaced with the bumper to bumper or zero depreciation add-on policy, as the add-on does not account for depreciation of the car parts.

The following are the primary advantages of bumper-to-bumper vehicle insurance:

  • While settling claims, ensure that you have complete or 100 percent coverage.
  • Gain depreciation immunity, with the exception of certain damages.
  • This is especially beneficial to first-time and luxury car owners.
  • It gives you piece of mind to know that your car is practically completely covered by the insurance company.

What Doesn’t Bumper to Bumper Insurance Cover?

It is also known as “zero or nil depreciation,” which is advantageous since it provides 100 percent coverage in the event of automotive damage. However, there are a couple of drawbacks. What is not covered by bumper-to-bumper insurance is as follows:

  • In general, insurers accept only two claims per policy period, though this varies by the insurance company.
  • If the car has been reported to have been used for unlawful or unethical purposes, the insurance will deny the claim.
  • Using a personal vehicle for business purposes.
  • Some engine damage, tires, batteries, glass, clutch plates, and bearings may be excluded from coverage.
  • The claim will be refused if the policy has expired.
  • The insurance will not settle the claim if it is not filed within the prescribed time frame.
  • Damages resulting from mechanical failures are not covered.
  • Accessories will not be replaced if they are damaged.
  • If the motorist was inebriated while driving, the insurer will deny the claim.

How to Purchase Bumper to Bumper Insurance Over the Internet?

You can purchase car insurance with a bumper-to-bumper add-on by visiting the insurer’s website or downloading their mobile app. The procedure for purchasing is similar to that of purchasing a comprehensive vehicle insurance policy. You can choose the add-on when renewing your auto insurance policy if you have standard coverage. You can, however, select the add-on at the time of vehicle purchase. The steps to buying bumper to bumper auto insurance online are as follows:

  • Step 1: Go to the website of the insurance company
  • Step 2: To renew your policy, provide your vehicle registration number. You can use the same processes if you want to switch insurance companies.
  • Step 3: You’ll be asked to choose from a variety of Add-on covers. As an option, add the Zero or Nil Depreciation Cover.
  • Step 4: Pay the required premium and receive your insurance copy through email within minutes.

How to Renew Bumper to Bumper Insurance (Zero or Nil Depreciation) Online?

It’s easy to renew your bumper-to-bumper auto insurance, especially if you do it online. It’s the same as renewing your regular car insurance coverage. The steps to renew bumper to bumper auto insurance online are as follows:

  • Step 1: Go to the website of the insurance company.
  • Step 2: Log in with your credentials or, if you’re switching insurance companies, provide the vehicle’s registration number.
  • Step 3: Before paying the price, choose the add-on.
  • Step 4: Pay the premium and receive your comprehensive auto insurance policy by email at the address you provided.

Bumper to Bumper Car Insurance Premium:

Bumper-to-bumper automobile insurance premiums are slightly more than ordinary car insurance premiums. This is due to the fact that it covers all elements of your vehicle and does not depreciate the value of the items being replaced when determining the claim amount. You have complete coverage, and the insurer covers the entire cost of the claim. However, the cost is modest when compared to the money you may have to pay out of pocket in the event of a repair under a complete insurance plan.

Used (Second-Hand) Car Bumper-to-Bumper Insurance:

An insurance policy that covers all sections of the car, whether it is a used or new car, is a full package in the event of an unfortunate accident. As an add-on, insurers offer Zero Depreciation Cover, which is essentially bumper-to-bumper coverage. Due to the age of the vehicle, the value of an automobile decreases over time. Depreciation is the term for the decrease in the worth of a car.

Except for losses to batteries, tires, engines, and glass, the Zero or Nil Depreciation add-on cancels depreciation and pays virtually 100% of the claim. Whether you own a used luxury car or a less expensive car, you and the insurer must cover the cost of repairs under normal Comprehensive insurance. Bumper-to-bumper insurance for used automobiles, on the other hand, allows you to claim 100% of the repair costs from the insurance carrier. As a result, you will have an edge over comprehensive insurance.

Limitations of Bumper-to-Bumper Coverage:

Bumper-to-bumper coverage, often known as zero or nil depreciation coverage, has its own set of limitations. Some of the limitations of the add-on cover are listed below:

  • Water infiltration or oil leaks can cause engine damage.
  • Bearings, clutch plates, tyres, and other components wear out.
  • Driving without a valid driver’s license is illegal.
  • After taking alcohol or other intoxicating substances, you should not drive.
  • Using a personal automobile for commercial purposes.
  • Driving without a license is illegal.

Is Everything Covered by Bumper to Bumper (Zero or Nil Depreciation) Insurance?

While bumper-to-bumper insurance covers every inch of your car in the event of an accident, some components of the claim are not covered. The following are the specifics:

  • Rubber, plastic, nylon, and battery components are not covered. Before the insurance company settles the claim, a minimum of 50% depreciation is computed.
  • Car parts made of fibre glass will depreciate by 30% and, unlike metal parts, will not be fully covered.
  • The first year of depreciation for wooden parts will be 5%, the second year will be 10%, and so on.

Consider the Following When Choosing Bumper to Bumper Insurance:

To make an informed decision, you must examine numerous aspects before purchasing regular auto insurance or bumper-to-bumper coverage. The following are the primary points to consider when purchasing bumper to bumper insurance:

  • Limitations on the number of claims you can file per year: Some insurance companies have a restriction on the number of claims you can file per year. This is done to deter policyholders from filing minor claims for minor dents. When choosing bumper to bumper coverage, make careful to read the terms and conditions of the claim cap.
  • The cost of the Add-on Cover: When compared to the regular Comprehensive car insurance coverage, the bumper-to-bumper car insurance price is significantly higher. While this may appear to be costly, your money are adequately secured in the event of car damage in the event of an unexpected accident.
  • Not All Cars Are Eligible: There is a limit on the age of the vehicle. After a certain age, insurers no longer provide bumper-to-bumper coverage for automobiles. As a result, you should read the terms and conditions before selecting an add-on cover.

The distinction between bumper-to-bumper and comprehensive car insurance is as follows:

bumper-to-bumper comprehensive car insurance
Provides complete (100%) coverage After taking into account the depreciation of car parts, it provides coverage.
Premium is slightly higher. Amount of the standard premium
After a certain age, it no longer covers the car Vehicles that are older are covered.

Related posts

Hypothecation in Car Insurance
Compulsory and Voluntary Excess In Motor Insurance
Zero-Dep Car insurance policy