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Bumper to Bumper Policy: All you want to know!

Bumper to bumper policy aka the Zero depreciation car insurance policy started in India in the year 2009. It is a car insurance policy that leaves out the depreciation factor from the coverage giving you complete cover. It means when you make a claim no depreciation is subtracted from the coverage with reference to wear and tear of any body parts of car excluding tyres and batteries. The insurance company is liable to pay the entire cost of the body part for replacement due to an accident.

Let’s understand what is bumper to bumper policy?

Bumper to bumper policy offers 100% coverage for all fibre, rubber and metal parts without deduction of depreciation. Some companies also include costs for emergency transport, roadside assistance, tow-away services, free key replacement etc. Bumper to bumper policy is gaining popularity a mongst the new generation car buyers, especially those buying high end cars.

Is it worth to purchase Bumper to Bumper policy?

Bumper to bumper policy offers coverage without the depreciation factor which is different than standard insurance policies. This feature also makes the policy expensive and is not for people seeking cheap car insurance. The policy also has a cap on the number of claims that you can make in a year. Basically, bumper to bumper car insurance is good for new cars as claims are not entertained for cars which are more than 5 years old.

Advantages of bumper to bumper car insurance policy

Full peace of mind as complete coverage and full claim settlement for rubber, metal and parts of your vehicle without any depreciation.

It covers 100% damage cost to your new vehicle.

Disadvantages of bumper to bumper car insurance

Due to extensive damage coverage, premiums are almost 20% higher than normal coverage.
Limit on number of claims in a year.
It is applicable only to new cars aged up to 5 years.

Exclusions of Bumper to bumper policy

Damage to car tyres or batteries is generally not covered.
Damage to car engine due to water ingression or oil leakage.
Any mechanical breakdown is not covered.
Any consumables or oil change in the car.

Let’s see a comparison between Comprehensive vs Bumper to Bumper Car Insurance:

Comprehensive Policy
Zero depreciation policy
Premium cost
Comparatively low
Comparatively high
Number of claims
No limit
Limited to 2
Car age eligibility
Up to 15 years old
Up to 5 years old
Plastic parts
50% coverage
full or 100% coverage
Glass – Windshield, side glass
100% coverage
100% coverage
Airbags (accidental damage)
50% covered
100% covered
Up to IDV amount covered
Up to IDV amount covered

Those who are looking for a low insurance premium and are ready to take sufficient risk, a comprehensive car insurance plan is recommended for those buyers.

For whom bumper to bumper insurance is suggested?

·         First-time car buyers who require full insurance for their new car and do not want to bear the risk factor of depreciation during the time of claim settlement.

·         High-end car buyers who have invested a good amount of money in the car and know that the replacement of any part will be fairly expensive.

Bumper to bumper car policy has its advantages and its disadvantages. It is upon the policy holder to decide the right insurance based on his needs and situation. A clear understanding of the policy and its exclusions need to be analysed before making a decision. After all, you get what you pay for.But whether the car insurance premium amount that you are paying is worth for your caror not, this is something for you to take a final call.
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