Know Everything about Bumper to Bumper Car Insurance Policy

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5 min read

Updated on Oct 31, 2022

If you have ever purchased a car insurance policy through an insurance agent, you will know that their claims of offering an all-inclusive plan never stays 100% true to their words. Most of the car insurance policies do not protect your car against the standard wear and tear. At times, even your current policy might prove inadequate to fulfill your insurance requirements on many instances. Thus, most such policies usually do not compensate you fully against the damages caused to your car in case of an accident.

For all such people who are dejected with the false claims of insurance agents or who are not happy with their present insurance policy offerings, the bumper to bumper car insurance policy is the solution to your problems. Though the comprehensive insurance policy is a good option for an inclusive car insurance, but if you are looking at extensive coverage you should go for the Bumper to Bumper insurance policy.

In this article, we will delve into the different aspects of bumper to bumper car insurance to enlighten you about its benefits, drawbacks, features, inclusions, exclusions and much more.

Let’s first start with knowing about the bumper to bumper insurance meaning.

Also Read: Exclusions by Your Car Insurance Policy?

What is Bumper to Bumper Car Insurance Policy?

As the name denotes, a bumper-to-bumper car insurance is a policy that works as an add-on to the comprehensive car insurance policy, offering bumper cover to the insured unit. This insurance policy covers almost the entire vehicle with exceptions of the tyres, glass, engine, and batteries. The various parts covered in this insurance, which are normally excluded in most car insurance policies include: rubber parts, fiber-glass, plastic, nylon as well as metal components.

How Useful is the Bumper to Bumper Insurance Policy?

Being a zero depreciation policy, the bumper-to-bumper car insurance definitely has its numerous advantages when compared with a comprehensive plan. However, the policy comes at a bumper price that might hit your pocket. In fact, this policy is as much as 20% expensive as compared to the comprehensive policy.

Thus, you need to pay a hefty premium amount for this plan, which might not suit people seeking an insurance plan with reasonable premium. However, if you are willing to pay high premium in lieu of a policy that covers your car entirely and ensures mental peace then you must go ahead with this bumper cover policy offering car insurance bumper to bumper.

Inclusions and Exclusions of Zero Depreciation Car Insurance

The zero dep car insurance policy offers the following inclusions and exclusions:

  • Include coverage for rubber, fiber, plastic, and nylon parts.
  • The coverage can be included during renewal or at the time of buying a new policy.
  • It allows you to process for entire amount of claim.
  • Highly beneficial for new and luxury cars.
  • The policy excludes items like bi-fuel kit, gas kits, mechanical breakdown of engine, batteries etc.
  • You must renew your bumper-to-bumper car insurance policy every year to continue enjoy its benefits.

Benefits of Zero Depreciation Car Insurance

  • At the time of settlement, this policy offers full compensation against every loss or damage.
  • The amount reimbursed in case of bumper-to-bumper car insurance policy is more than what is refunded in a comprehensive policy.
  • Unlike in comprehensive plan where the car owner needs to pay a certain amount from their pocket for getting the car repaired, in a bumper-to-bumper car insurance the owner of the vehicle gets the entire claim amount.

Disadvantages of Zero Depreciation Car Insurance

  • This policy comes at a hefty amount.
  • You have to pay 20-30 % higher price as compared to a comprehensive policy.
  • The policy also has limitations in terms of number of claims that can be filed during the policy term to gain full claim advantages.

If you are still confused about the bumper-to-bumper car insurance policy, let us give you a simple comparison between the comprehensive car insurance policy and the bumper-to-bumper policy.

Difference Between Comprehensive Car Insurance vs Bumper to Bumper Car Insurance

  • The premium to be paid for Bumper-to-Bumper policy is more as compared to what you pay for a comprehensive policy.
  • Compensation received in case of Bumper-to-Bumper insurance include complete cost on repair regardless of depreciation, whereas it excludes depreciation value in case of comprehensive plan.
  • In Bumper-to-Bumper insurance, you get compensation for parts like rubber, fiber-glass, plastic, nylon as well as metal components, whereas in case of comprehensive plan, you have to pay a partial amount from your pocket for such repairs.

Zero Dep Car Insurance is suitable for:

  • Owners of expensive cars/vehicles.
  • Beginner drivers/ those who don’t have much driving experience.
  • If the car/vehicle plies on roads/areas which are accident prone.

Reasons why Zero Dep car insurance is highly sought after:

  • Since it offers easy claim process, thus it is liked by first time policy users.
  • It covers expenses against repair and replacements of depreciated parts.
  • Serves best for expensive car owners as they can claim reimbursement for full amount for expensive parts in case of an accident/damage.

Top Insurance Companies Offering Bumper to Bumper Car Insurance

To avail the best insurance policy, you need to check different insurance companies offering the insurance plans for your car. Here is a list of the top insurance providers who offer Bumper-to-Bumper car insurance:

  1. Bajaj Allianz General Insurance Company
  2. Bharti AXA General Insurance Company
  3. Chola MS General Insurance Company
  4. Edelweiss General Insurance Company
  5. Future Generali India Insurance Co. Ltd.
  6. Go Digit General Insurance Company
  7. HDFC ERGO General Insurance Company Ltd.
  8. IIFCO Tokio General Insurance Company Ltd.
  9. Kotak Mahindra General Insurance Company Ltd.
  10. Liberty General Insurance Company Ltd.
  11. National Insurance Company Ltd
  12. The New India Assurance Co. Ltd.

 

The bottom line

The best way to buy the Bumper-to-Bumper insurance policy is through online sources. The process is very simple like in the case of comprehensive plan. The only distinction is that you can buy it as an add-on at the time policy renewal or at the time of buying a new policy. Just ensure to compare different policies before buying the final product.

This policy is especially beneficial for all those for whom the standard policy doesn’t suffice adequately. So, if you feel that you need some changes in your policy requirements, you can opt for the add-on Bumper-to-Bumper insurance facility at the time renewal of the insurance policy to ensure optimum protection.

Jan 31, 2022
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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