Bumper to Bumper insurance is the add-on available on payment of extra premium under the own damage section. It is also known as “Nil depreciation” or “Zero depreciation” cover. Having bumper-to-bumper insurance enables the customer to get the complete claim amount in case of any accident without factoring in the deprivation of the parts.
Bumper to bumper insurance or nil depreciation provides full coverage for all rubber, fibre, and metal parts of your car without deducting the depreciation. Remember that it will not cover engine damage resulting due to oil leakage or water ingression. Also, there are also limitations on the number of claims that you can file in a year. The list of exclusion also includes mechanical breakdown, consumables or oil change.
Why Bumper to Bumper Insurance?
Bumper to bumper insurance means it plays an important role to ensure huge insurance protection. If insured your car with a comprehensive cover is a good idea. But, if you’re current insurance cover proves to be short at that time even when you needed to be covered by this policy.
Regular wear and tear is not covered by a standard car insurance policy. So here is the Bumper to Bumper Insurance cover to protect your need. This Insurance cover is the most popular add-on plan in Bumper to Bumper Car Insurance/Bike Insurance. The add-on/rider is also referred to as Nil Depreciation cover or Depreciation policy by different insurance companies.
This rider is a benefit to vehicle owners because it troubles free to claim pay out process by providing coverage for the depreciation part of the claim as well. As it offers coverage for the costly components of the vehicle, owners of expensive cars are also increasingly opting for this plan.
What is covered in Bumper to Bumper Insurance?
- Opting for the Bumper to Bumper insurance helps the insured get higher claim amount compared to that of claim amount with comprehensive cover. The amount for depreciation can form a considerable portion in the overall claim amount.
- The premium paid for Car insurance Bumper to Bumper insurance price cover is quite less compared to the coverage it offers. The premium for Zero depreciation in car insurance would normally be a percentage of comprehensive premiums. So more coverage can be obtained by paying fewer premiums. Bumper to Bumper car insurance premium calculators are used to arrive at the premium.
- For those who purchased a new vehicle, it is advisable to opt for a Bumper to Bumper premium.
- High-end vehicles with expensive spare parts, these vehicle owners should opt for a bumper-to-bumper policy to get rid of huge damage risks.
- Bumper to Bumper Insurance is mandatory if your residence is prone to theft or riots. For drivers who have a worse driving history, this add on cover is helpful.
- If you are confident of making dents or bumps to your vehicle, it is suggested to get zero depreciation policy.
- Damage to tyre and tubes, Regular wear and tear, clutch plates, bearings etc.
- Private Car is used for commercial purpose and vehicle owner is not having valid insurance at the accident place.
- Car insurance is not useful for more than 5 years old and bumper to bumper insurance for 6 year old car and it doesn’t cover to engine damage due to oil leakage or water ingression.
Benefits will cover with Bumper to Bumper Plan?
Bumper to Bumper plan comes with many benefits to avail while you are insured with it.
- If you have a Bumper to Bumper plan, you are safe from Out-of-pocket expenses.
- This value-added plan avoids the depreciation charged on the parts that required replacement.
- It settles most claims without charging depreciation on the insured parts.
- Your investment on your car/bike becomes zero with this plan.
Bumper to Bumper Insurance for Car Insurance
Bumper to Bumper car insurance protect your vehicle against all odds of collision damage, physical damages without considering depreciation into account, this impacts the complete coverage for damage caused. It is important to know what zero depreciation in car insurance and bike insurance is, as this add-on plays a crucial role at the time of claim settlement.
The rising repair costs for a car owner has made think twice before purchasing only comprehensive insurance. To escape the logic of payment for depreciation from one pocket customers have started opting for nil depreciation or Zero depreciation insurance or Bumper to bumper cover.
How Bumper to Bumper Car Insurance Works?
Everything has its advantages and disadvantages and Zero Depreciation policy is no exception. The coverage of these policies is undoubtedly better than comprehensive policies. However, no good thing comes for free. Bumper to Bumper policies offer a greater coverage and hence its cost is much more than standard car insurance policies.
The premiums are substantially higher, which makes it a little unreachable for people seeking affordable car insurance. However, for those who do not mind paying high premiums, this policy is desirable as it provides complete peace of mind. These policies limit the number of claims that you can make in a year.
This is done to curb customers from filing claims for small damages just because they do not have to bear the cost. Bumper to Bumper Car insurance Policies are good for brand new cars as claims are not entertained for Bumper to Bumper insurance after 5 years. Benefits are not provided in such cases. Moreover, it is also not a wise idea to shell out higher premium on old cars.
Third Party Insurance
Having valid third party car insurance is mandatory as per the Indian Motor Vehicle’s Act without which the owner/driver can be fined up to Rs.5000 or up to 3 months imprisonment or both. This has led to the demand in third party insurance coverage in the market, but the third party car insurance is limited to cover the damages sustained by third parties and not the insured’s own vehicle.
So the customers have started looking for the insurance which can cover both the vehicle as well as the third party damages which ultimately led to the purchase of Comprehensive car insurance.
Bumper to Bumper Insurance for Two Wheeler/Bike Insurance
Buying a Bumper to Bumper two-wheeler is of high expense. If you are the owner of a bike you might have gone through the stages of tracking your finances while managing your savings to buy a two-wheeler. You might already have noted the impact of lifestyle on your vehicle.
You can’t prevent your car from regular aging or any unforeseen damage caused while commuting. These damages or aging of the vehicle have a significant amount of impact on your pocket. These situations make appropriate insurance with higher coverages important for your two-wheeler.
Bumper to Bumper is given on the vehicles which are new and the plan does not cover the two-wheelers which are more than 3 years old. The plan can deliver an optimized benefit if it is taken on any brand new bike.
It is advised to choose Zero Depreciation plan while you are buying a new insurance for your vehicle. If you are interested in buying Zero Depreciation plan, you can choose it while renewing your standard policy. The general insurance companies hold a limitation on the number of claims opted during the policy period without depreciation which is generally 2 claims.
Note: how many years bumper to bumper insurance? So, it is advisable to purchase Bumper to Bumper car insurance for 5 years and Bumper to Bumper bike insurance for 3 years. For Bumper to Bumper Car Insurance calculator can be done using the portal where almost all the vehicle insurance companies are offering their services.
Difference between Comprehensive and Bumper to Bumper insurance?
Comprehensive car insurance had its own limitations in the form of depreciation. Depreciation refers to the decrease in the value of the asset over a period of time due to usage. The depreciation is factored in case of comprehensive car insurance claim and only partial claim amount is paid to the insured. The remaining amount has to be borne by the insured customer which is the depreciated amount for the damaged parts.
This had led to the need for the Bumper to bumper cover or the Zero depreciation cover in car insurance at the time of claim. The Zero depreciation cover is the most preferred add-on or rider in the car insurance plan as it covers almost the entire claim amount incurred by the insured due to an accident. Let us understand the difference between the Zero depreciation cover and the Comprehensive cover in car insurance.
||Zero Depreciation Policy
|Max. number of claims
||Limited to 2
|Car age limit
||All cars up to 15 years old
||New cars till 5 years
|Plastic (all parts made with plastic)
||50% is covered
|Glass – Windshield, side glass
||1st year- 95% , 2nd year- 90%
3rd year- 85%, 4th year- 75%
5th year- 65%, up to 10 years 50% covered
|Airbags (damaged due to accident)
||Up to IDV covered
||Up to IDV covered
||Current value after depreciation is covered
|| IDV without depreciation is covered
|Non-deductible spare parts/ labour charges
Bumper to Bumper Insurance cost can be calculated from Our Portal and compare insurance quotes with different insurance companies who provides Tata taiga bumper to bumper insurance, Maruti bumper to bumper insurance price, new car bumper to bumper insurance, and bumper to bumper insurance mandatory for every person who own a car/bike.