While browsing through car insurance online, you might have discovered that several insurance policies are available, tailored to meet specific requirements. The basic or standard car insurance policy offers compensation for the depreciated value of car parts.
However, bumper-to-bumper car insurance offers complete coverage, without considering depreciation. Continue reading to learn more.
What is Vehicle Insurance Bumper to Bumper?
In standard comprehensive car insurance, the insurance provider depreciates the cost of repaired or replaced parts before settling the insurance claim. However, with bumper to bumper insurance coverage, the insurance company will cover all parts of your four-wheeler except for tires, batteries, engine, glass and tubes.
Insurance providers usually offer bumper to bumper car insurance as an add-on with their standard policy. It is also referred to as “zero depreciation cover”. This policy gives you almost complete coverage in case of damages to your four-wheeler.
This policy is excellent for new car owners, inexperienced car owners, luxury car owners and car owners who reside in accident-prone areas.
Benefits of Bumper to Bumper Car Insurance
- Complete or 100% coverage during car insurance claim settlement.
- This is especially beneficial for first-time or luxury four-wheeler owners.
- Protection from depreciation except for certain damages.
- It offers car owners peace of mind by ensuring the insurance company covers their four-wheelers completely.
Exclusions of a Bumper to Bumper Car Insurance Policy
If you raise a bumper to bumper insurance claim related to any of the points mentioned below, the insurance company will reject the claim:
- If your four-wheeler has been used for unethical or illegal activity, your insurer will reject the claim.
- This policy does not cover tires, engine, battery, bearing and glass damages.
- The expiration of the car policy will result in a rejected claim.
- Your car insurance claim will be denied if you use a private four-wheeler for commercial purposes.
- Does not provide coverage for damages caused by mechanical breakdowns.
- Does not provide coverage for accessory damages.
- Your car insurance claim will be denied if you drink while driving.
- You must raise a claim within a specific time period; failure to do so will result in a rejected claim.
Factors to Consider While Choosing Bumper to Bumper Car Insurance
There are certain factors you should consider when choosing bumper to bumper insurance. These factors include:
Price of Additional Coverage
The bumper to bumper insurance premium is slightly higher than standard comprehensive car insurance. This policy might seem expensive, but in case of damage to your four-wheeler due to an accident, your financial savings will be well protected.
Annual Claim Limit
Certain insurers restrict the number of claims that a policyholder can raise during the policy period. Therefore, check the policy terms before choosing bumper to bumper insurance.
Not Available For All Four-Wheelers
Four-wheeler age restrictions apply in the case of bumper to bumper insurance. Insurance companies do not provide this coverage for four-wheelers of a certain age, usually older than 5 years. Therefore, you must review the terms and conditions before opting for bumper to bumper coverage.
To Wrap It Up
You might be wondering about the difference between bumper to bumper and comprehensive insurance. While comprehensive car insurance offers coverage against damages due to unforeseen incidents, bumper to bumper cover is an add-on you can purchase to further enhance the coverage under a comprehensive insurance plan.
Therefore, for extended and complete coverage, you may consider purchasing a bumper-to-bumper cover along with your comprehensive car insurance policy.
