Bumper to Bumper Insurance

Bumper to bumper insurance, also referred to as zero depreciation or nil depreciation, is an add-on that can be purchased with a comprehensive car insurance policy to enhance insurance coverage. With this cover, a policyholder receives the full claim amount without any deduction for the depreciated value of the insured car or its parts.

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What is Bumper to Bumper Insurance?

Bumper to bumper insurance is a type of car insurance policy that offers complete coverage to your car irrespective of the depreciation on its parts. So, when there is a loss or damage caused to your vehicle due to an accident, the insurer will not deduct the depreciation value from the claim amount (excluding batteries and tyres) and will pay the entire cost of vehicle repair or part replacement.

Bumper to bumper car insurance or full-body insurance provides full coverage for all rubber, fibre, and metal parts of your car but does not cover engine damage resulting from oil leakage or water ingression. Any expenses incurred from mechanical breakdown, consumables or oil change are also excluded. Additionally, there are limitations on the number of claims that you can file in a policy year.

Key Features of a Zero Depreciation Policy

Here are the important features of bumper to bumper car insurance:

• A bumper to bumper add-on can be availed when you buy or renew comprehensive car insurance policy.
• It provides coverage for fibreglass components, rubber parts, plastic, and nylon parts.
• In a bumper to bumper policy, you can claim the full amount. Whereas in a standard policy, depreciation rates between 0% and 50% are applicable.
• You can buy bumper to bumper insurance after 5 years and up to 10 years for older cars.
• The number of claims under this add-on cover is limited, which may vary from one insurer to another.
• It is essential to renew the zero depreciation policy every year to continue enjoying the policy benefits.

Advantages of Bumper to Bumper Car Insurance

Here are some benefits of buying bumper to bumper insurance for your car:

• Cost-Effective Premium: Bumper to bumper insurance comes at an affordable price. Car owners can enhance their coverage with this add-on by paying a slightly more premium compared to a standard car policy.
• Zero Deductibles: With the zero dep add-on, you are not required to pay any depreciation costs as they are covered by your insurer.
• Hassle-free Claims: The claim settlement process for bumper to bumper car insurance is speedy and smooth, with 24x7 claim assistance.

Bumper to Bumper Insurance vs Comprehensive Car Insurance

Here is a brief comparison between a comprehensive car insurance policy and bumper to bumper insurance:

Car Depreciation Rates Set By IRDAI

The depreciation rates for cars are set by the Insurance Regulatory and Development Authority of India (IRDAI), as shown below:

A car's value depreciates by 5% as soon as it is taken out of the showroom. This depreciation percentage keeps on increasing every year. Here is the table showing depreciation rates for cars as they age:

However, with the zero dep or bumper to bumper add-on, you are not liable to pay your car's depreciation value.

Importance of Bumper to Bumper Car Insurance

Here is why bumper to bumper insurance for the car is one of the most sought-after insurance products in India and why you can consider it along with the standard coverage:

• It makes the claim process easier for someone who is claiming car insurance for the first time by covering the full expenses incurred towards the repair or replacing of the depreciated parts listed above.
• This cover is a boon for expensive car owners that demand high maintenance. Usually, repair or replacement of any parts of these cars come at a high cost. Having this add-on relieves the policyholder by paying the full value of the part during the time of a mishap.

What is not Covered Under Bumper to Bumper Car Insurance?

A bumper to bumper car insurance policy has the following exclusions:

• This cover is not available for cars older than 10 years.
• It does not provide coverage for engine damage due to oil leakage or water ingression.
• Regular wear and tear, damage to tyre and tubes, clutch plates, bearings etc. are excluded.
• If the private car is being used for a commercial purpose or vice versa.
• If the vehicle owner does not have a valid car insurance policy at the time of the accident.
• No coverage is offered if the driver is found driving under the influence of alcohol or drugs or other intoxicating substances.
• If the driver does not have a valid driving licence.
• If the insured vehicle is used for illegal activities.
• If a claim is filed against an expired policy.

How is Bumper to Bumper Insurance Price Decided?

The insurance company decides the cost of bumper to bumper cover by considering the following factors:

• Age of the car
• The make and model of the vehicle
• Geographical location of the car owner

You can also use a bumper to bumper car insurance calculator to check the insurance premium online on Policybazaar.com before buying the policy.

How to Buy Bumper to Bumper Car Insurance Online?

Here's a simple process to buy bumper to bumper insurance online:

• Go to Policybazaar.com and select 'Car Insurance.'
• Input your car number and select its details, such as make and model, variant, RTO, etc.
• Now, from the list of car insurance quotes, select a plan that suits your coverage requirements and budget.
• Under 'Add-ons,' select 'Zero Depreciation' cover.
• Now, you will see the updated policy premium, which you can pay via cards, net banking, or UPI.
• After successful payment, your bumper to bumper car insurance documents will be sent to you instantly via email.