April 20, 2024

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All You Ought To Know About Bumper To Bumper Cover

What is a Bumper-to-Bumper Cover? Why is it So Popular?

In India, third-party car insurance is a legal necessity, and finding the right coverage can be a balancing act between affordability and risk assessment. The Motor Vehicle (Amendment) Act mandates insurance for all vehicles on public roads or property, with third-party insurance providing financial protection against potential legal liabilities arising from damage to third-party persons or property.

Car owners often grapple with deciding what to include or exclude in their motor insurance coverage. Many opt for comprehensive plans covering third parties, the insured, the vehicle, and its passengers. Comprehensive insurance protects the car against theft, vandalism, and natural disasters. People frequently invest in add-ons, extra insurance coverage purchased for an additional fee to enhance coverage. Among these add-ons, bumper-to-bumper coverage, also known as zero depreciation or nil depreciation cover, has gained popularity. Claims are subject to terms and conditions set forth under the motor insurance policy. *

What Is A Bumper-to-Bumper Insurance Plan?

Bumper-to-bumper insurance is an add-on to comprehensive insurance that provides full coverage for all types of damages to your car, including those to rubber parts, fibreglass, plastic, nylon, and metal parts, which are typically excluded in a standard comprehensive policy. Claims are subject to terms and conditions set forth under the motor insurance policy. *

As the name implies, a bumper-to-bumper add-on covers the entire vehicle, excluding only a specific kind of engine damage, tyres, batteries, and glass. *

This motor insurance policy add-on is offered for newly-exhibited vehicles and vehicles under five years old.

If your car is damaged in an accident or for other reasons listed in the policy, bumper-to-bumper insurance gives you 100% coverage. *

The most enticing aspect of this add-on policy is that it doesn’t factor in depreciation when handling motor insurance claims. It comprehensively covers the cost of replacing your vehicle’s parts. In contrast, depreciation is a significant consideration in standard car insurance, as insurers believe a car’s value depreciates as soon as it leaves the dealership. While it’s available to anyone, the following groups would derive the most benefit from bumper-to-bumper insurance coverage:

  • Drivers of new cars and those under the age of five
  • Owners of expensive or upscale car
  • Newly licensed or inexperienced drivers
  • Those who must travel to or live in areas where there are frequent accidents or natural disasters
  • Those who want to avoid even a small dent, scratch, or bump on their car
  • Age Of The Vehicle: Only five or newer vehicles may be eligible for bumper-to-bumper insurance. Older cars are not covered.
  • Limit On The Number Of Claims: Most car insurance companies only permit a certain number of claims annually. Car owners should conduct research before choosing a company because the number of claims allowed varies.
  • High Cost: The cost of bumper-to-bumper insurance is more expensive than the cost of a regular comprehensive policy that excludes these protections.

Bumper-to-bumper Insurance Policy Exclusions

Bumper-to-bumper has a lot of appealing qualities, but it also has exclusions. Typically, the bumper-to-bumper insurance policy does not cover engine damage brought on by fuel or water intrusion. *

Similarly, it might not be covered if the car’s fuel changes. The battery, tyres, gas kit, clutch plates and bearings may not be included in certain types of damages and wear and tear.

*Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.