Although the Motor Vehicles Act, 1988 mandates that certain people be informed, having a comprehensive policy is recommended for car owners. The reason is simple. With a comprehensive policy, you get information against third parties and damages that your car may suffer in an accident or as a result of a natural or man-made disaster.
With auto insurance plans, you get additional benefits. Add-ons are optional and provide additional features that help increase the number of points. One such add-on, which is widely available with all auto insurance plans, is the zero deductible add-on. When you add this cover to your basic policy, you get a 360 degree policy. It is also called a bumper-to-bumper insurance policy.
What is Bumper To Bumper Insurance?
Bumper-to-bumper insurance is comprehensive car insurance in which zero deductible is added. Under bumper-to-bumper insurance plans, the number of claims is higher because the insurer does not deduct the depreciation of the vehicle that has been repaired or replaced.
To buy bumper-to-bumper insurance, you can choose both and add a zero-depreciation cover to make the policy comprehensive.
Why is bumper-to-bumper coverage important?
Although comprehensive, auto insurance plans do not cover depreciation due to normal wear and tear. Likewise, with respect to the decision that the car is repaired, the depreciation that occurs on the parts of the car is deducted from the price. In contrast, the garage pays the full amount. In the end, you have to reduce the cost of the depreciation that the insurance company took out.
When it comes to the level of depreciation, there is a table where insurers deduct the amount of depreciation. This table shows the different parts of the car and their depreciation. Look –
The cost of this depreciation is huge. You may pay more than 50% of the repair cost as the insurance excludes the down payment. In the case of serious damage, the cost of repairs can reach tens of thousands. If you pay the depreciation, you may suffer a lot. Hence, a zero-collision cover or bumper-to-bumper insurance comes in handy to cover this loss.
Let’s understand with the help of an example.
Let’s say you have a car (vehicle age: 12 years) that is damaged in a collision. The car’s bonnet gets badly damaged, and you give the car in for repair. The renovation costs are divided as follows:
When you raise the interest rate on these funds, the insurance company calculates the amount of your claim after deducting depreciation. So, this is how the required amount can be calculated –
As it turns out, for an amount of INR 55,000, you get a maximum of INR 30,500, which also ignores the mandatory withdrawal, and increases your expenses.
The interest rate increases significantly if you choose to add zero down and convert the entire system to a bumper-to-bumper cover. Discounts on depreciation cannot be applied, and you get a fine for the full renovation cost, i.e. INR 55,000. You can pay a mandatory discount, for example, Rs.1000 (assuming the car’s engine capacity is 1500 cc). The remaining INR 54,000, can be paid with your bumper-to-bumper policy.
Quality Bumper to Bumper Cover
Bumper-to-bumper coverage offers you the following benefits:
- Financial aid is High Demand
Since the fund also pays a down payment, your out-of-pocket expenses are reduced. Therefore, you can protect your wealth and hard-earned money and get financial relief even if it is a huge loss.
The bumper-to-bumper cover adds to the volume of the claim. The higher the amount of claims the better your car insurance will be, especially if you have an expensive car where the cost of repairs can be very high.
Zero cost premiums cost a fraction of the cost of motor insurance. As such, it is cheap. In addition, what is provided is more than the additional costs that you have to pay for the treatment.
- Full protection
Finally, zero deductibles make your auto insurance coverage more comprehensive. It adds the protection you need from lighting and gives you peace of mind.
What You Need to Know About Bumper to Bumper Cover
Although the bumper-to-bumper plan gives you a detailed coverage, here are some of the things you need to know –
Zero depreciation is usually only available on cars and bikes up to 5 years old.
2. The number of claims
Insurance companies can limit the total number of zero claims they will pay. Under most plans, bumper-to-bumper coverage is available up to twice during the policy period. However, these days, most insurance companies offer unlimited coverage. Such plans are limited in the standard setting which reduces the number of claims and, therefore, they are recommended.
3. Exceptions to the news
There are some situations where a bumper-to-bumper cover may not work. These events include the following –
Complaints not covered under this policy. For example, drunk driving, driving without a license, etc.
a. Changing other parts of the car, such as tires and tubes.
b. Cost of goods.
c. Compulsory deductible
d. Voluntary discount (if selected)
4. Loss or theft:
If the car is damaged or stolen, the losses you get are not covered by bumper-to-bumper coverage. In such cases, the zero-depreciation rate will not apply.
Tips for Buying the Right Bumper Cover
As mentioned earlier, bumper-to-bumper cover is very popular and, therefore, is offered by almost every insurance company that offers a car insurance plan. Therefore, choosing the right bumper-to-bumper cover is important, especially if there are many options.
So, here are some tips to help you buy the right car insurance for you –
A. Compare the sizes
First, calculate the rate of additions for zero depreciation. As mentioned earlier, some plans limit the amount of bumper-to-bumper claims while others do not. Therefore, check for security restrictions. Try and choose a plan that allows for unlimited bumper-to-bumper coverage.
B. Look at the tree
Zero cost premiums are purchased separately from different insurance companies. So, compare and check the price each insurance is paying. Compare the additional premiums with the original premiums. Choose the plan that offers the best competition to get the best money.
C. Check the rental schedule
Today, many insurers have reduced their claims process by introducing things like –
a. Dshipping and handling
b. Fixing the night
c. Information from the program
d. Faster approval and stability, etc.
Check out this information about what insurance companies are offering. Choose a company that has an easy financing plan to get your car repaired easily, and you’ll get paid sooner.
Comprehensive Vs. Bumper to Bumper Cover
A comprehensive policy is one that covers third-party liability and damages that your vehicle may incur. On the other hand, the bumper-to-bumper system is more comprehensive and has zero emissions. This is the main difference between the two plans. Other differences include:
A bumper-to-bumper policy provides all-around support to your vehicle and increases the amount of coverage you need for a lower price. Therefore, this policy is recommended so that you don’t spend too much out-of-pocket during the application process.
Check out the bumper-to-bumper cover offered by different insurance companies and compare the plans on three main aspects – coverage, cost and application process. Choose the most suitable policy for your car and give it the right protection.