Exploring Bumper-to-Bumper Insurance: 5 Crucial Considerations

We live in a world where there’s a scope to personalise almost everything we purchase. Be it the clothes we don or even the morning coffee that we get on our daily beverage runs, almost everything can be customised as per our liking.

The same principle applies to products like motor insurance as well. While owning a basic, third-party motor insurance plan is mandatory by law, you always have the option to go for a comprehensive car or bike insurance plan. These policies offer more coverage when compared to their third-party counterparts. What’s more, you can even choose certain add-ons to further boost the benefits that you’re eligible to enjoy. One such additional policy rider is called the Bumper-to-Bumper cover. Curious about the offerings of this insurance rider? Keep reading.

What is a ‘Bumper-to-Bumper’ Add-On Cover?

Also known as the Zero-Depreciation Cover, this rider allows you to claim the initial Sum Insured quoted to you at the time of policy purchase, regardless of vehicular depreciation. After getting this add-on for your comprehensive car or bike insurance policy, you’ll get complete coverage for all fibre, rubber, and metal components of your vehicle. No deductions based on the annual depreciation of these parts will be made by your insurer, with IDV-related coverage slashes being nil. What is IDV, you ask? In simple terms, Insured Declared Value (IDV) is a rough estimate of your vehicle’s market value, depending on its age and condition.

And that’s not all! We saved the best part for last. One of the best advantages offered by a bumper-to-bumper cover is its cashless settlements. This means that your policy provider will settle all replacement-related dues at their end, eliminating the need for you to spend even a single rupee! Having stated that, there are a few things that you should be aware of, before finalising this cover for your comprehensive motor insurance plan.

5 Things To Take Note Of

Available for both cars and two-wheelers

You can purchase this additional rider to enhance the coverage of any motor insurance plan, be it the cover for your car or your two-wheeler. As the add-on stays active for a maximum period of 5 years, this makes it a perfect choice for new vehicle owners. The rider also comes in handy for those individuals who have just secured a licence and aren’t very confident about their car/bike driving skills. Either way, if you own a vehicle that is less than 5 years old, it is advisable for you to go for a bumper-to-bumper motor insurance cover. Once in place, the add-on will serve by bridging the gap between the higher claim settlement amount and the depreciated value of your car/bike’s components.

Complete Coverage at Network Garages

After getting the bumper-to-bumper cover, you can rest assured that you’ll obtain the rightful value for your vehicle’s components, provided you get the repairs done at network garages. Typically, if the workshop is a cashless garage, then your respective insurer will settle all dues on your behalf, without you making a single transaction!

Replacement of Glass, Rubber, and Fibre Components

Most insurers that offer comprehensive insurance covers (exclusive of bumper-to-bumper-rider) don’t cover the replacement charges of certain parts made of glass, rubber, or fibre. However, when the same policy is boosted via such a cover, its degree of coverage shoots up to include these vital expenses as well. However, you should note that this benefit doesn’t extend to cover the replacement costs of car/bike tyres and batteries. Moreover, if your vehicle’s engine suffers damage due to water seepage or oil leakage, then the costs related to replacing/repairing the component will not be covered, either.

Limited number of claims

Your insurer might place a limit on the number of claims that you raise during one policy year. Hence, after going for a bumper-to-bumper cover, you should avoid approaching your insurance provider for certain minor damages and file a claim only when it is absolutely necessary.

Slightly higher premiums

The higher the degree of coverage, the higher the insurance premiums. Therefore, comprehensive motor insurance plans featuring a bumper-to-bumper benefit inevitably come with higher premiums. However, when compared to the vast perks and exhaustive coverage offered by the rider, this additional expense is merely a small price to pay.