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Buying car insurance can feel confusing, right? You see so many terms: third-party, comprehensive, add-ons, and it is hard to know what really protects you.
Now imagine this: your car gets scratched, dented, or even badly damaged in an accident. You expect insurance to cover everything, but then you find out you still have to pay a big amount from your own pocket. That is where bumper to bumper car insurance comes in.
In simple words, bumper to bumper insurance (also called zero depreciation cover) helps you get almost the full claim amount without deductions for parts. Let's learn more about bumper to bumper car insurance to get a better understanding.
About Bumper to Bumper Car Insurance
Bumper to bumper car insurance is an add-on that covers your car almost fully, without considering the depreciation (loss of value) of its parts. If your car gets damaged in an accident, the insurance company will pay the full cost of repairs or part replacements, except for batteries and tires.
This insurance add-on covers most rubber, fibre, and metal parts of the car, but does not pay for engine damage caused by oil leakage or water entry. It also does not cover mechanical breakdowns, oil changes, or consumables.
How Bumper to Bumper Car Insurance Works?
Bumper to bumper insurance is very easy to understand. When your car gets damaged in an accident, and you make a claim, the insurance company pays the full repair cost. They do not cut any money for depreciation (loss of value of parts).
In a normal car insurance policy, the company reduces the claim amount based on the age of your car and the damaged parts. For example, plastic and rubber parts may have around 50% depreciation, so you don't get the full money.
But with bumper to bumper coverage, this deduction is not applied, so you get the full claim amount for repairs.
For example:
Lalit had a small accident, and his car's bumper and fibre parts were damaged. The repair cost was Rs. 20,000.
- With normal insurance, he gets about Rs. 10,000 (after depreciation) and pays Rs. 10,000 from his pocket.
- With bumper to bumper insurance, he gets the full Rs. 20,000, so he does not need to pay extra.
Key Features of Bumper to Bumper Car Insurance
Here are the key features of bumper to bumper car insurance add-on:
- This policy covers parts like fibreglass, rubber, plastic, and nylon.
- It allows you to claim the full amount for repairs, unlike a standard policy that deducts depreciation.
- You can buy this insurance when you purchase or renew a comprehensive car insurance policy.
- It is available for cars up to 10 years old, but terms may vary after 5 years.
- The number of claims you can make in a year is limited and depends on the insurer.
- You must renew this policy every year to continue receiving its benefits.
Benefits of Bumper to Bumper Insurance Add-on Cover
Now, let's understand some amazing benefits that you can get from bumper to bumper car insurance:
- It gives you better protection: This add-on gives extra safety for your car. It covers damage caused by accidents for both new and experienced drivers.
- You can get a lower repair cost: You don't have to worry about depreciation. The insurance pays for repairs or parts, so you pay less money from your pocket.
- It helps you save your money: You may pay a little more premium, but when your car gets damaged, you get a higher claim amount, which helps you save money.
- You can get a higher claim amount: The insurance does not cut money for depreciation. You get a bigger claim, but the maximum amount is limited to your car's IDV (Insured Declared Value).
IRDAI Car Depreciation Rates
IRDAI sets rules for how much value your car loses over time. These rates are used by insurance companies to decide how much money will be deducted during a claim.
| Age of Car | Without the Zero Depreciation add-on | With the Zero Depreciation add-on |
|---|---|---|
| Under 6 months | Nil | 0% |
| 6 months to 1 year | 5% | 0% |
| 1 to 2 years | 10% | 0% |
| 2 to 3 years | 15% | 0% |
| 3 to 4 years | 25% | 0% |
| 4 to 5 years | 35% | 0% |
| 5 to 10 years | 40% | 0% |
| More than 10 years | 50% | 0% |
Depreciation Rates According to the Parts of the Car
| Parts of a car | Without Zero Depreciation | With Zero Depreciation |
|---|---|---|
| Rubber/Nylon/Plastic parts | 50% | 0% |
| Fibre Glass Parts | 30% | 0% |
| Glass Parts | Nil | 0% |
What is Covered Under Bumper to Bumper Car Insurance?
- If your car is damaged in an accident, the insurance will pay for the repair or replacement of parts without depreciation.
- It covers damage caused by fire, explosion, or self-ignition.
- It also covers damage from natural events like earthquakes and floods.
- The insurance covers damage caused by people, like vandalism or riots.
What is Not Covered Under Bumper to Bumper Car Insurance?
Bumper to bumper car insurance does not cover the following situations:
- No coverage if the car is older than 10 years.
- No coverage for engine damage caused by oil leakage or water entry.
- Regular wear and tear, including damage to tires, tubes, clutch plates, and bearings, is not covered.
- No claim is allowed if the policy has expired at the time of the accident.
- If the vehicle is used for illegal activities, no coverage is provided.
- No coverage if the driver is under the influence of alcohol, drugs, or any intoxicating substances.
- If the driver does not have a valid driving license, the claim will be rejected.
- If you use a private car for business work or a commercial car for personal use, the insurance claim will not be accepted.
- If the vehicle owner does not have a valid insurance policy at the time of the accident, the claim will be denied.
How is the Cost of Bumper to Bumper Car Insurance Decided?
The cost of bumper to bumper car insurance depends on these factors:
- The car's make and model.
- The year the car was made.
- The location where the car owner lives.
Things to Check Before Choosing Bumper to Bumper Insurance
Before buying bumper to bumper insurance for your car, keep these points in mind:
- Check your car's make, model, and age This means you should know what brand your car is, which type it is, and how old it is. Insurance rules and prices can change based on this.
- Find out what damages the insurance will cover You need to understand what kind of problems the insurance will pay for, like accidents, scratches, or broken parts.
- Compare the premiums (cost) charged by different insurers Different insurance companies charge different prices. Check a few options and choose the one that gives good coverage at a lower price.
- Check how many claims you can make in a year Some insurance plans limit how many times you can ask for money (claims) in one year. Make sure you know this limit.
- Understand how it affects your total insurance cost Adding bumper to bumper coverage may increase your total insurance price. So, check how much extra you will need to pay.
How to Buy Bumper to Bumper Car Insurance Add-On Online?
Follow these simple steps to buy bumper to bumper insurance online:
- Step 1:Visit Squareinsurance.in and click on 'Car Insurance'.
- Step 2:Enter your car number and select details like make, model, variant, and RTO.
- Step 3:Choose a car insurance plan that fits your budget and coverage needs.
- Step 4:In the 'Add-ons' section, select the 'Zero Depreciation' cover.
- Step 5:Check the updated premium and pay using a card, net banking, or UPI.
- Step 6:Once payment is done, you will get your insurance documents by email instantly.
Conclusion
Bumper to bumper insurance helps you avoid unexpected repair costs and keeps your car fully protected. It is a great option for both new and experienced car owners who want extra coverage and peace of mind. So if you are looking to buy car insurance and want to compare it on one platform, Square Insurance can help you with this. Get in touch with our team to know more.
FAQs
Yes, it is good, especially for new cars. It covers most repair costs, so you don’t have to pay much from your pocket.
It pays for most parts of your car, like plastic parts, rubber parts, and small damages. It helps in accidents and repairs.
Full insurance covers many damages, but you still have to pay some amount due to depreciation. Bumper to bumper insurance covers almost everything related to depreciation, so you pay very little or nothing.
It depends on the insurance company. Usually, you can claim 1 or 2 times a year.
Yes, bumper to bumper insurance covers the car’s bumper. It pays for full repair or replacement without considering depreciation, as long as it follows the policy rules.
No, bumper to bumper insurance is usually available only for cars up to 5 years old. Some insurers may offer it for cars up to 10 years old with certain conditions.
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