Bumper to bumper car insurance, also known as “Zero depreciation cover”, helps cover damages to the car caused by an accident, despite the depreciation of its parts. It is primarily suitable for car owners who fall under the categories listed below:
New car owners
High-end luxury car owners
Inexperienced or new drivers
Car owners who frequently drive in accident-prone areas
Getting one can be immensely beneficial to secure your vehicle in the long run. Read on to learn more about purchasing bumper to bumper car insurance and other details about it in the following sections:
The parts covered under the bumper to bumper insurance policy include nylon parts, fibreglass components, plastic, and rubber parts
The zero depreciation policy allows you to easily claim the full amount in case of any damage to the car, unlike a standard policy which includes 0-40% depreciation rates
This nil depreciation cover is ideal if you have purchased a car within the last 5 years
Bumper to bumper insurance policy allows you to make a limited number of claims that vary based on the insurer you choose
Any uninsurable peril (event with a high risk of occurrence) or normal wear and tear is not covered under this policy
You must renew the insurance every year to enjoy the benefits associated with a zero depreciation policy
With any kind of car insurance, you are privy to certain benefits. However, bumper to bumper insurance brings along a set of additional benefits that are not available with other kinds of policies. Read on to learn more about them:
Depreciation Isn’t Considered
All car insurance policies pay out only the claim amount after setting aside a certain sum for depreciation. Here, depreciation refers to the normal wear and tear of a machine that occurs during its daily usage, and its monetary value lowers regardless of how well you maintain your car.
As a result, you are probably going to end up losing a hefty amount while applying for any kind of claim with your vehicle in case of an accident. However, bumper to bumper car insurance ensures that your insurer does not take into account the depreciation value and instead settles your claims for the car in terms of its original value.
Maximises Insurance Coverage
Since this insurance enhances your car’s existing coverage, it significantly decreases any out-of-pocket expenses and offers extensive protection to your vehicle.
Secures Your Finances
A bumper to bumper car insurance policy significantly influences the expenses that would be incurred as a result of the depreciation cost of the insured vehicle.
When you opt for motor insurance available on Bajaj Markets you can get access to a car insurance bumper to bumper add-on at a nominal cost. You also opt for a cashless claim settlement facility to ensure you experience a smooth car insurance claim process.
Let’s understand the difference between comprehensive car insurance and bumper to bumper cover with the below table:
Parameters |
Comprehensive Car Insurance |
Bumper to Bumper Cover |
Definition |
The policy provides extensive coverage for third-party liabilities and damage to your vehicle as well. |
It is an add-on cover provided over and above your existing comprehensive car insurance policy. |
Premiums |
Standard comprehensive policy premium |
Standard car insurance policy premium + Add-on cover amount. |
Coverage |
The policy covers old vehicles. |
The cover is not available for vehicles that are five years old or above. |
The table below showcases what’s covered and not covered under the bumper to bumper car insurance policy.
Items |
Covered/Not Covered |
Cars above 5 years of age |
Not covered |
Engine damage due to water ingression or oil leakage |
Not covered |
Body damages |
Covered |
Replacement/repair of the depreciated car parts |
Covered |
Regular wear and tear and damage to tyres, tubes, clutch plate, bearings, and batteries |
Not covered |
Parts made of rubber, fibreglass, plastic, nylon and metal |
Covered |
Damages due to mechanical breakdown |
Not covered |
Damage to accessories |
Not covered |
Private cars used commercially or vice versa |
Not covered |
Driving without a valid licence during car accident |
Not covered |
Driving under the influence of alcohol or other intoxicating substances |
Not covered |
Car’s Age |
Rate of Depreciation Without Zero Depreciation Cover |
Rate of Depreciation With Zero Depreciation Cover |
<6 months |
0 |
0% |
6 months-1 year |
5% |
0% |
1years-2 years |
10% |
0% |
2 years-3 years |
15% |
0% |
3 years-4 years |
25% |
0% |
4 years-5 years |
35% |
0% |
5 years-10 years |
40% |
0% |
>10 years |
50% |
0% |
Car’s Parts |
Rate of Depreciation Without Zero Depreciation Cover |
Rate of Depreciation With Zero Depreciation Cover |
Rubber/Plastic Parts/Nylon/Paintwork, Tubes and Tyres, Airbag parts and Batteries |
50% |
0% |
Glass parts |
0 |
0% |
Fibreglass parts |
30% |
0% |
The premium you pay for the bumper to bumper car insurance policy is affected by the following factors.
Car model - One of the major factors that decide the insurance premium you pay for the car is the model of your car. The cost of car parts which affects the repair bill is dependent on the model or variant of the car and helps determine the premium you have to pay for bumper to bumper car insurance policy.
City of the car - There are several benefits and risks associated with every city which defines the premium you will be required to pay for the insurance policy. Hence, the premium for a standard insurance policy along with add-ons like zero depreciation/bumper to bumper insurance depends on the city where you drive your car.
Age of the car - Bumper to bumper car insurance or zero depreciation add-on cover is directly linked to the depreciation of the car and its parts. Therefore, the age of your car is crucial when calculating the insurance premium.
The process of purchasing car insurance bumper to bumper is similar to that of buying a comprehensive plan from your insurer. However, since this is an add-on cover, you have to add it over and above your basic plan during the purchase in the following way:
Step 1: Visit the insurer’s website and go to the “Car Insurance” section
Step 2: Enter your personal and vehicle details
Step 3: Select comprehensive car insurance coverage
Step 4: Select the bumper to bumper add-on cover along with other necessary rider benefits
Step 5: Review the policy and coverage details before proceeding to pay the premium
Step 6: Make the premium payment online
Step 7: The policy with bumper to bumper insurance will be issued to you shortly
You would need the following documents to file the claim:
Filled and signed claim form
Insurance policy
Registration certificate of the car
Driving incense
Copy of filed FIR
Estimated bill of the repair
Bills and payment receipts
The number of claims that you can raise under bumper to bumper insurance varies from one insurance provider to another. Hence, it is crucial to check the number of claims admissible while purchasing such a cover.
No. Bumper to bumper insurance is an add-on cover that ensures you get the complete claim amount without considering the depreciation rate. On the other hand, comprehensive insurance is a plan that offers all-round coverage against various mishaps you could face on the road.
The bumper to bumper insurance claim process is similar to any comprehensive car insurance policy. Since it is an add-on insurance that entails zero deprecation, you need to ensure that the insurer does not add any depreciation cost.
The number of times you can claim the insurance varies based on your insurance company. However, most insurers allow two claims during the policy period in the case of bumper to bumper insurance.
Follow these steps to make the claim:
Notify the insurer at the earliest in case of any accident or damage to register the claim
Your vehicle needs to be sent for damage assessment and estimation
The expenses are settled with the insurer directly if the car is taken to the network garage
Once the car is repaired, you can sign the documentation and take your car home
Most insurers allow you to claim the bumper to bumper insurance only twice during the policy period hence, it is not recommended to claim it for small damages such as scratches. This can allow you to raise a claim for major damages in the future, if any.
Bumper to bumper insurance does not provide any coverage for the following:
Damages to the tyres, tubes, clutch plates, bearings, and batteries of the car.
Damages to the accessories.
Damages caused due to mechanical breakdown.