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Difference between Bumper-to-Bumper and Comprehensive Insurance

Team AckoJul 14, 2021

Your car is an integral part of you and your family, and you want to ensure that it has the correct insurance coverage to protect your car against unforeseen damages. You may have heard the term “Bumper to Bumper” and may wonder what type of insurance coverage it provides. Here is a detailed guide on the difference between Bumper-to-Bumper and Comprehensive Insurance.

Comprehensive Insurance Vs Bumper To Bumper Insurance

Comprehensive Car Insurance

A Comprehensive Car Insurance Policy is an ideal insurance coverage for your car. It not only takes care of third-party liabilities but more importantly, the plan focuses on providing financial protection against damages or losses to your vehicle. You can even include add-ons such as No Claim Bonus Protection Cover, Personal Accident Cover for Passengers, etc., to extend the primary plan’s coverage through this plan.

What does the Comprehensive Car Insurance not cover?

While the Comprehensive Plan covers damages or losses incurred by the insured vehicle, it has its limitations. Hence, your car will not be fully covered since depreciation will be considered while settling the claim.

At the time of claim settlement, the depreciation rate to the motor parts will be deducted before the final amount is paid. Hence, you receive a lower compensation amount at the time of claim settlement. 

Bumper-to-Bumper Car Insurance

A Bumper-to-Bumper Car Insurance is an ideal insurance coverage for your car as it provides a slightly broader coverage as compared to Comprehensive Car Insurance. It is also known as “Nil Depreciation Cover” or “Zero Depreciation Cover.”

As we mentioned above, when you raise a claim for damages against Comprehensive Car Insurance, ACKO may compensate you after deducting the depreciation of the parts being replaced or repaired. However, by purchasing the Zero Depreciation add-on for an additional premium, ACKO will compensate you without deducting the depreciation of the parts being replaced or repaired.

Comprehensive vs. Bumper-to-Bumper

Here is a table that provides an insight into the difference between Comprehensive and Bumper-to-Bumper Car Insurance.

Factors Comprehensive Bumper-to-Bumper
Premium amount Higher than Third-party Insurance Slightly higher premium than Comprehensive Insurance
Coverage Depreciation of parts is considered Depreciation of parts is not considered
Age of the car Usually up to 15 years Restricted up to 5 years. Post that, ACKO and the policyholder will decide.
Type of cars All All
No. of claims No limit Unlimited claims are allowed under this add-on.
Compensation for plastic parts/metal components Covered; however, depreciation rates are applicable.  Covered. Depreciation is not considered.
Theft protection Yes Yes
Airbags (in case of accidents) Partial Full

Example: If your car was damaged and the garage has billed you Rs. 50,000, you might have to pay Rs. 25,000 to Rs. 30,000 from your own pocket since depreciation is deducted for metal, fibre, and plastic parts. This type of situation arises when you have insured your car with a Comprehensive Insurance Plan. 

However, if you have the Bumper-to-Bumper Insurance Plan, ACKO will not deduct depreciation of the parts; hence, the entire repair bill of Rs. 50,000 will be paid by ACKO apart from the compulsory or voluntary deductibles that you must pay.

When should you choose Bumper-to-Bumper Insurance?

Here are the situations when you need to opt for Bumper-to-Bumper Car Insurance.

  • If you own a brand new car

  • If you need full coverage for the repair costs 

  • If your car falls under the luxury or premium category

  • If you are concerned about minor dents in your car

  • If you have just started to learn driving

  • If the car parts are expensive

  • If you live in an accident-prone area

Who should opt for a Comprehensive Insurance Policy?

Persons who need broader insurance coverage for their car and those who need financial security in case of vehicle damage can choose this plan. Here are the coverage details of the Comprehensive Insurance Plan.

  • Damages due to an accident

  • Damages due to natural calamities (cyclones, floods, storms, etc.)

  • Car theft

  • Damages due to man-made calamities (vandalism, riots, etc.)

  • Damages due to fire or explosion

  • Damages that are beyond repair (total loss)

  • Third-party liabilities (injury/death or damage to property)

Also, Read: Comprehensive vs Third-Party Car Insurance

Conclusion

Your car can be damaged due to an unforeseen incident. While the Comprehensive Insurance Plan provides coverage against such liabilities, it does not provide complete coverage. There are deductions due to the depreciation of the parts; hence, the primary plan’s coverage may not be sufficient. It is recommended that you buy the Bumper-to-Bumper Insurance Plan along with the Comprehensive Insurance Plan to get an extended and complete coverage. 

For the additional premium you pay, you can be at peace knowing you have complete financial protection during unpredicted incidents. Bumper-to-Bumper Insurance and Comprehensive Insurance both have their advantages; therefore, you need to opt for the ideal insurance coverage for your vehicle so that you are not financially affected.

Frequently asked questions

Here are some of the common queries about the Bumper-to-Bumper Insurance Plan.

FAQs

Does a Comprehensive Insurance Plan cover bumper to bumper?

No, it does not cover your car from bumper to bumper. A Comprehensive Insurance Plan is designed to cover damages or losses to the insured vehicle. However, during the settlement of claims, the repair bill will be paid after deducting the depreciation of the parts being replaced or repaired.

Is damage to the car bumper covered under insurance?

Damage to the car bumper is covered only under the Comprehensive Insurance Plan and not under the Third-party Insurance Plan.

Is it worth buying a Comprehensive Car Insurance Policy for my car?

Yes. Apart from covering third-party liabilities, the Comprehensive Plan also covers damages to the insured car, including theft and damages that are beyond repair. You also have the option to include relevant add-ons to reduce the impact of associated financial risks. 

Is it worth buying Bumper-to-Bumper insurance for my car?

By including the Zero Depreciation Cover (Bumper-to-Bumper), buying the add-on would cost you a bit more, but the benefits would be worth it in times of crisis.

How do I check if my car insurance has Bumper-to-Bumper Insurance?

You can check the policy document since it is stated in the policy. It is officially known as Zero Depreciation Cover. So, look for the mention of Zero Depreciation Cover or ZD Cover to ensure if your car insurance has Bumper-to-Bumper Insurance.

What is not covered in Bumper-to-Bumper Insurance?

While the add-on cover offers 100% financial coverage for all metal parts, fibre, and rubber, it does not cover damages to the tyres, engine, or gearbox due to water ingression or oil leakage. However, mechanical breakdown, consumables, or oil change are covered under the add-on.

Is there a limitation to the number of times I can raise a claim under the Bumper-to-Bumper Insurance Plan?

Yes, there is a limitation on the number of claims you can raise under the Zero Depreciation Cover. Check your car insurance policy document for the terms and conditions to learn about the maximum claims you can raise under the add-on.

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