Difference Between Bumper-to-Bumper and Comprehensive Insurance

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 terms “Bumper to Bumper” and “Comprehensive Insurance”, and may wonder what type of insurance coverage they provide. Here is a detailed guide on the difference between Bumper-to-Bumper and Comprehensive 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.

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. 

What is Bumper to Bumper Insurance meaning? 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, the insurer` 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, the insurer will compensate you without deducting the depreciation of the parts being replaced or repaired.

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

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, the insurer will not deduct depreciation of the parts; hence, the entire repair bill of Rs. 50,000 will be paid by the insurer apart from the compulsory or voluntary deductibles that you must pay.

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

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.

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