What Is Bumper-To-Bumper Car Insurance and How Does It Work?

What is Bumper-to-bumper car Insurance?

A bumper-to-bumper car insurance policy is commonly called zero depreciation or nil depreciation cover. It is a car insurance plan that encompasses total coverage for your car. Suppose your car faces any damages, gets stolen, or is damaged beyond repair. In that case, you can claim 100% of the sum insured under your chosen policy without deductions based on the depreciated cost.

The bumper-to-bumper insurance plan is a fantastic way to ensure that the passage of time, usage, and the resultant depreciation collected on your car does not affect the sum you can claim on your car insurance policy.

It is great to compare and understand different policies from various insurers before you decide on one. This holds good whether you are getting a new insurance policy or renewing an old one.

You can choose a bumper-to-bumper policy while purchasing or renewing your car insurance. It is relatively easy to buy bumper-to-bumper insurance online. All you require is to visit the official website of the insurance provider of your choice and select a plan. You can then be secure with the financial protection available to you with the insurance policy.

What are the Advantages of a Bumper-to-Bumper Insurance Policy?

Getting a bumper-to-bumper car insurance policy entitles you to several essential insurance benefits. Here are the benefits of getting a bumper-to-bumper policy.

Worry not about car repair costs.

Having a bumper-to-bumper insurance plan for your car is helpful because you can claim the entirety of the repair expenses for your vehicle. You can also claim costs incurred in replacing the components of the insured car. You will not have to shell out money to repair and fix the damages in your vehicle.

Don't worry about the ageing of your car.

With time, the components of your car depreciate. With bumper-to-bumper car insurance, you can claim for repairs and replacements of your car's parts. You can ultimately make your car look and feel ageless and reduce the impact of depreciation while filing your car insurance claims.

Good choice for high-end cars with high expenses

If you own or drive a high-end car or a car that will cost you a lot on repairs and replacements, it is best that you have bumper-to-bumper car insurance. This will safeguard you from expensive financial burdens while getting your car fixed.

What is Covered in a Bumper-to-Bumper Insurance Policy?

You must know what is covered and what is not in your insurance policy. This is one of the significant steps in availing an insurance coverage. You must understand what your need is and avail a policy accordingly.

Coverage for damages caused due to a collision

If your car is damaged during an accident, a bumper-to-bumper policy combined with your comprehensive insurance policy or standalone damage policy will offer coverage for the resultant expenses. Without a bumper-to-bumper package, you can claim only a certain percentage of the damage caused to your vehicle, dependent on the depreciation accumulated on the relevant parts.

Fire damage

If your car is damaged due to a fire accident, such as explosions, self-ignition, and the like, a bumper-to-bumper insurance policy offers total coverage, except for the parts specifically mentioned that are excluded from the insurance policy.

Natural disasters and damage caused

A bumper-to-bumper policy covers damages caused due to a natural calamity. Some policies also cover damages caused by artificial disasters like riots and strikes.

Theft

An insurance policy covers you if your car gets stolen. While a comprehensive car insurance plan and a standalone own damage policy offer you the vehicle's 'Insured Declared Value' after accounting for depreciation, the bumper-to-bumper plan helps you receive the car's total value without any depreciation deductions.

What is Not Covered in the Bumper-to-Bumper Car Insurance?

You must check how many times you can claim insurance within a tenure. Each provider has its regulations.

If you drive the car intoxicated, you cannot claim insurance during a mishap.

If your insurer feels your vehicle has been used for purposes not intended, they may disapprove your claim. For example, you are using your car for commercial purposes.

If your car has damaged parts that are not covered by your selected plan, the insurer will not approve your claim. It is, therefore, necessary to know what components are covered under the plan and what are not.

You will also need to be mindful of the expiry of your insurance. If your insurance is nearing expiry, you must consider renewing the same. You cannot make claims on expired insurance policies.

Wrapping Up

You have now understood the concept of bumper-to-bumper insurance policy. It is one of the most valuable and viable options if you drive a car or any vehicle in India, given the rise in the number of vehicles on the road and the number of road accidents.

Fixing damages to your vehicle can impose high financial risks. It is, therefore, sensible and practical to protect yourself from lasting and worrying financial risks by availing yourself of a bumper-to-bumper insurance policy.