A car insurance in India comes either in the form of third-party insurance or comprehensive insurance (which covers both third-party and own damage insurance). But there’s another: bumper-to-bumper car insurance. What's the difference between comprehensive and bumper to bumper insurance? Let’s find out.
Probably, the best insurance coverage for your car is a comprehensive vehicle plan. In addition to taking care of third-party responsibilities, it also covers any own damage or loss caused to your vehicle. More coverage can be added to this plan by purchasing add-ons like engine protection, personal accident cover, etc., which is unavailable when you have only third-party liability insurance.
You can also claim damages caused due to explosions, fire, vandalism, riots, floods, storms, cyclones, etc.
People who require larger car insurance coverage and those who require financial protection in the event of vehicle damage can choose this plan. The Comprehensive Insurance Plan's coverage features are listed below:
Bumper-to-bumper car insurance is an add-on cover to comprehensive insurance, meaning nil depreciation or zero dep insurance plan. It offers full coverage for your vehicle. In this case, depreciation is also not considered if there is any claim, and your car is considered brand new.
This means — even if your vehicle is damaged, stolen, or destroyed beyond economical repair, you will still receive the full amount insured under your car insurance policy for your vehicle, with no depreciated cost deductions.
Comprehensive car insurance coverage does not cover a vehicle's everyday wear and tear. As a result, the insurance will not fully compensate you for the damage to your car while claiming any damage. A comprehensive insurance policy excludes coverage for subsequent harm.
Below are the reasons you must choose a bumper to bumper insurance:
Look at this table to understand the differences between Comprehensive and Bumper to Bumper Insurance:
The comprehensive plan covers third-party liability and damages to the insured car, including theft, i.e. irreparable harm. Additionally, you have the choice to merge pertinent add-ons to lessen the impact of financial treatment. Thus, it is a much better option than third-party liability-only insurance.
Often referred to as a "complete" plan, comprehensive insurance does not provide coverage for various incidents:
Now let's discuss bumper to bumper insurance. Remember:
Despite these limitations, a zero depreciation cover has benefits in the long run. To give you an idea of how much loss depreciation can cost you, here is the table of vehicle value depreciation with time.
Unexpected events may result in damage to your vehicle. Although the comprehensive insurance policy offers protection against such obligations, the coverage is not 100%. A large amount of depreciation is charged to your vehicle every time you make a claim.
On the other hand, bumper to bumper insurance helps you save big as your vehicle doesn’t bear the depreciation loss. This add-on enhances the overall protection to protect the vehicle (100% coverage with no depreciation). Weigh the pros and cons and choose the most appropriate vehicle insurance plan.
Comprehensive coverage pays for theft or damage from events like severe weather, fire, or falling trees. In contrast, collision insurance covers damage to your car if you collide with an object or vehicle.
If you use your car regularly, then you must have a comprehensive cover because an accident can happen anytime, anywhere. Also, an outdated car's poor performance can result in an accident. Car insurance coverage will be helpful for the vehicle owner in such a situation.
To keep your premium amount lower, you may choose a high deductible comprehensive plan for your older vehicle with a low value. Alternatively, you might want to select a lower deductible if you reside in a region where auto accidents, animal-vehicle collisions, and natural catastrophes are frequent in order to reduce out-of-pocket expenses.
A bumper-to-bumper car insurance cover provides financial protection for all metals, fibre, and rubber components of the vehicle. It doesn’t include harm to Engine and Gearbox issues caused by water ingression or oil leaks.
Bumper-to-bumper car insurance is an add-on cover to comprehensive insurance, meaning nil depreciation or zero dep insurance plan. It offers full coverage for your vehicle. In this case, depreciation is also not considered if there is any claim, and your car is considered brand new. This means — even if your vehicle is damaged, stolen, or destroyed beyond economical repair, you will still receive the full amount insured under your car insurance policy for your vehicle, with no depreciated cost deductions.
Having a bumper to bumper insurance ensures that you can claim full compensation for any car damage.