While the Motor Vehicle Act 1988 provides for third party coverage, a comprehensive policy is recommended for vehicle owners. The reason is simple. With a comprehensive policy, you get coverage against third party liability and damage to your vehicle in an accident or due to any natural or man-made disaster.
With comprehensive car insurance plans, you get the option of add-ons. Add-ons are optional and provide additional coverage features that help improve the scope of the policy. One such add-on, which is generally available with all comprehensive auto insurance plans, is the depreciation-free add-on. When you add this cover to your primary insurance policy, you get a 360-degree policy. Also called bumper-to-bumper insurance policy.
What is Bumper To Bumper Insurance?
Bumper-to-bumper insurance is simply a comprehensive vehicle insurance policy with zero depreciation added. Under bumper-to-bumper insurance plans, the claim amount is higher because the insurance company does not deduct depreciation from parts of the vehicle that are repaired or replaced.
To purchase a bumper-to-bumper insurance policy, you can choose comprehensive coverage and add a zero depreciation cover to make the policy all-inclusive.
Why is a shock absorber cover needed?
Although auto insurance plans are comprehensive, they do not cover depreciation due to normal use and wear. As such, in case of a claim for vehicle repair, the depreciation incurred on the parts of the vehicle is deducted from the amount of the claim. On the contrary, the garage charges the full amount. In the end, you need to pay off the depreciation cost that the insurance company deducted.
When it comes to the depreciation rate, there is a table on which insurance companies deduct the amount of depreciation. This table shows the different parts of the vehicle and their depreciation. take a look –
These consumption rates are great. You may end up paying more than 50% of the cost incurred for repairs because the insurance company excludes the depreciation amount. In the event of serious damage, the cost of repair can easily reach tens of thousands. If you pay for depreciation, you could end up with a big loss. Thus, the additional function of a zero depreciation cover or bumper-to-bumper insurance policy proves useful to cover this loss.
Let us understand with the help of an example.
Let’s say you own a car (vehicle age: 12 years) that has been damaged in a collision. The hood is badly damaged, and you are repairing the car. Repair costs are categorized as follows –
When you file a claim for this amount, the insurance company will calculate the amount acceptable to the claim after deducting depreciation. So here is how the claim amount is calculated –
As it turns out, for the claim amount of INR 55,000, you get a settlement of INR 30,500, which also overlooks the mandatory deduction, which increases your personal expenses.
The amount of the claim increases significantly if you choose the Zero Depreciation add-on and convert the All-Inclusive plan to a shock absorber cover. Depreciation deduction will not occur, and you will get a claim for the total cost of the repairs i.e. INR 55,000. You will only pay the mandatory rebate amount, i.e. Rs 1,000 (assuming the vehicle’s engine capacity is 1,500 cc). The rest of the INR 54,000 will be covered by the bumper to bumper policy.
Shock absorber cover benefits
The extended bumper to bumper cover gives you the following benefits –
- Financial exemption and higher claim
Since coverage also pays for depreciation, your personal expenses are reduced. As such, you can protect your financial assets, hard-earned income, and receive financial relief even in the most harmful situations.
The extended bumper-to-bumper cover enhances the amount of the claim. A higher claim amount makes your insurance policy more comprehensive, especially when you own a luxury car as repair costs can be quite high.
- Affordable, Affordable, Affordable
Adding zero depreciation costs a small portion of the car insurance premium. As such, it is affordable. Moreover, the coverage offered far outweighs the small extra premium you have to pay to benefit from the coverage
- complete security
Finally, adding zero depreciation makes your car insurance policy comprehensive. It adds the security layer you’re looking for and gives you complete peace of mind.
Things to know about bumper cover
While our bumper-to-bumper policy provides you with a comprehensive scope of coverage, here are some aspects of coverage that you should know –
The zero-consumption add-on is usually only available for cars and bikes up to 5 years old.
2. Repeat prompts
Insurance companies may limit the total number of zero depreciation claims they will pay. Under most plans, bumper-to-bumper coverage is available up to twice during the life of the policy. However, nowadays, many insurance companies offer unlimited claims settlements. These plans have an advantage over regular plans which reduce the frequency of claims and are therefore recommended.
3. Coverage Exclusions
There are some cases where bumper to shock absorber cover is not applicable. These cases include the following-
Claims not covered by the policy. For example, driving while drunk, driving without a license, etc.
a. Replacing certain parts of the vehicle such as tires and tubes.
B. The cost of consumables.
c. for compulsory deduction
Dr.. Voluntary deduction (if selected)
4. Total loss or theft:
If the car suffers a complete loss or is stolen, the losses you incur will not fall under the jurisdiction of the shock absorber cover. In such cases, a zero depreciation claim will not be applicable.
Tips for buying the right shock absorber cover for shock absorber cover
As mentioned earlier, the bumper cover is very popular, and therefore it is offered by almost every insurance company that offers a car insurance plan. Therefore, choosing the right bumper-to-bumper cover becomes important, especially when so many options are available.
So, here are some tips that will help you buy the right bumper-to-bumper car insurance policy –
a. Compare range
First, compare the zero-consumption add-on scope. As mentioned earlier, some plans limit the number of bumper-to-bumper claims while others do not. So, check if there are restrictions on coverage. Experiment and choose a plan that allows unlimited bumper-to-bumper claims for maximum protection.
B. Check Installment
The zero depreciation add-on is priced differently across different insurance companies. So, compare and check the premium charged by each insurance company. Compare add-on premiums to the base policy premium. Choose a plan that offers the most competitive rates to get the best deal.
c. Check the claim process
Nowadays, many insurance companies have simplified their claim process by offering features like –
a. Droorstep pickup and delivery
B. Overnight repairs
c. App-based claim alerts
Dr.. Fast approval and settlements, etc.
Check out these features related to claims made by insurance companies. Choose a company that has the simplest claim process so your car is easily repaired, and you’ll get your settlement as soon as possible.
comprehensive vs. bumper to bumper cover
A comprehensive policy is one that covers third party responsibilities and damages to your vehicle. On the other hand, bumper-to-bumper policy is a comprehensive policy that does not contain any addition of depreciation. This is the basic difference between these two plans. Other differences include the following –
The bumper to bumper insurance policy provides comprehensive coverage for your vehicle and increases the amount of the claim by covering the cost of depreciation. Therefore, this policy is recommended to avoid significant personal expenses at the time of claims submission.
Evaluate the comprehensive coverage offered by different insurance companies and compare plans on three main criteria – coverage, cost and claim process. Choose the most suitable shock absorber to shock absorber policy for your vehicle and give it the protection it deserves.