Bumper to Bumper Car Insurance

Imagine after months and months of planning, budgeting, inquiries, suggestions, you finally decide on buying the car of your dreams. After some anxious wait, you are handed the key to your brand-new car and you find yourself sitting in the driver’s seat, almost gliding on the road.

This out of the world feeling suddenly comes crashing down on you when you hear the dreadful sound of a crash, and almost lightheaded you realize it’s your car that’s been hit!

This is where your car insurance policy comes in, and if you’ve opted for the Bumper to Bumper insurance cover then there’s nothing like it - you can be stress-free in seconds and your brand-new car will be back to brand new with no loss!

Bumper to Bumper cover usually comes as an 'add-on' with a comprehensive insurance policy with a little extra premium. Let’s first understand what Bumper to Bumper cover is.

Well, in a layman’s term it is a car insurance add-on that covers every inch of your car leaving certain engine damage, tires, batteries, and glass. This is your superhero that takes care of your car offering 100% coverage in an unfortunate event of car damage, unlike your regular car insurance policy.

Bumper to Bumper insurance is also called as zero depreciation or Nil depreciation car insurance. This is because it subtracts the depreciation value of car parts at the time of claim, thus ensuring complete coverage.

This cover is specifically popular among new vehicle owners, who don’t even want a small dent or scratch on their brand-new car and those who like to own expensive high-end cars with rare, expensive spare parts. These owners, when asked to pay an extra premium for the 100% coverage, find it a mere small price for their car’s protection.

Saves Money

Bumper to bumper auto insurance add-on ensures you get the full Insured Declared Value (IDV) of your car for repairs or replacements. This is because with this cover, the cost of depreciation is not considered, implying that you won’t have to pay extra at the time of claim.

Higher Claim Amount

With Bumper to Bumper cover the depreciation amount on car parts will not be subtracted, which means that you’ll receive the full amount needed for repairs or replacements, leading to a higher payout when you make a claim.

Affordable

You can purchase this add-on with your standard comprehensive or own damage car insurance by paying a small additional premium. It’s an affordable way to ensure better protection for your car and your finances.

Peace of Mind

With Bumper to Bumper add-on, you can feel confident that you’re financially covered in case your vehicle gets depreciated or in case of an accident, giving you peace of mind.

While bumper-to-bumper car insurance addon protects your car in any unfortunate event; however, it does not cover some aspects of the claim, such as:

• Unlike metal car parts, the fibreglass parts are depreciated by 30% and do not enjoy complete coverage.

• Depreciation on rubber, plastic, nylon parts and batteries is not covered.

• Depreciation on wooden parts is considered to be 5% in the first year and 10% in the second year, and so on.

Here are some things that are not included under the bumper-to-bumper insurance coverage:  

• If the age of your vehicle is 5 years or more, it will not be covered

• If any illegal or unethical involvement of the vehicle is reported, the insurance company will not process the claim

• If the vehicle is being used for commercial purposes

• Certain engine damage, battery/tyre/ clutch plates/ bearings damage

• If the driver was under drugs or alcohol influence during car damage

• If the papers of the vehicle are incomplete

• If the claim is not done as per the timeframe of the policy

• Damage due to uninsured peril

• Damage due to mechanical breakdown

• Damage to items like accessories, gas kit and tires

These factors affect the premium of your bumper-to-bumper insurance coverage:

Vehicle’s Age

Newer cars or bikes typically have higher premiums for bumper-to-bumper insurance coverage compared to older vehicles, as their parts are valued higher and are more likely to be covered fully.

Vehicle’s Make/Model

High-end or luxury vehicles generally have higher premiums because their parts are more expensive to replace, which means that bumper to bumper insurance cost will also be higher.

Location

The RTO location of your car or the area where you drive your vehicle the most also impacts the premium. Areas with high traffic density or higher accident rates can lead to higher bumper to bumper insurance premiums.

IDV and NCB

The IDV of your vehicle, which is the current market value of your car/bike also determines the premium of your insurance. Further, if you have not filed for any claims in the previous policy years, you can avail of the No Claim Bonus (NCB) to lower your bumper to bumper cover premium. 

If you have a standard insurance policy and your car suffers damage of about ₹15,000, you will have to shell out some percentage of the amount from your pocket as per the damage. The remaining amount will be is covered in your insurance policy after calculating the depreciation amount of the parts damaged. 

This picture is quite dismaying, and this is exactly why a bumper-to-bumper cover is gaining popularity among masses over the regular vehicle insurance. Trustable insurance companies such as Digit Insurance offer their customers this Add on cover with the comprehensive policy to make the customers make the most of their policy.

Now if your vehicle’s insurance has zero depreciation cover and your car suffers damage of ₹15,000, you will get total (100%) coverage for all fiber, rubber and metal parts without deduction of any depreciation.

Before you choose this cover, it is important that you consider the following factors:

• The number of claims: The insurers limit the number of car insurance claims one can make in a year. It is done to limit the customers from filing a claim for every single dent. Therefore, it is important to check the number of claims your insurer provides.

• Cost: Bumper to Bumper comes with a high premium because of an obvious reason, it offers complete coverage without considering depreciation. So, it charges a slightly higher premium than the comprehensive policy.

• Available for new cars: It is primarily available for new cars and for cars up to 5 years old. It is cost-effective for customers too; as people don’t mind paying a little extra to protect their brand-new car. 

This cover was introduced in India in 2009, and since then this plan is a boon to a lot of car owners especially the ones mentioned:

• A new car owner or anyone who’s car is less than 5 years old

• New or inexperienced drivers

• Owners of high-end luxury supercars with costly spare parts 

• Owners residing in/near the areas where accidents occur too often

• If you are concerned about even the tiny little dents and bumps

When you choose Bumper to Bumper addon cover, you choose your peace of mind. You choose extensive protection against unforeseen circumstances for both your vehicle and your pocket. It is like an umbrella giving you protection against something unexpected, saving you from all the unnecessary expenditures. Make a wise decision for your car and your pocket by opting for this cover with your policy.