Bumper to Bumper Insurance

Bumper to Bumper Insurance or Zero depreciation Policy & Its Benefits

Car Insurance Insurance

Last Updated on 05/01/2024 by Pardeep Garg

What is Bumper to Bumper Insurance for a car?

Bumper to bumper insurance covers all fiber, metal and rubber parts of the car. It differs from a comprehensive insurance policy in that it does not account for depreciation. In the event of an accident, the policy will pay out the full cost incurred to repair the vehicle. That is why this is also known as a ‘ZERO depreciation’ policy. It is important to note that it is offered as an add on to standard insurance policies.

Benefits of Bumper to Bumper Insurance

The key benefit of bumper to bumper insurance is that the total amount spent on repairs is reimbursed by the car insurance provider. This is especially beneficial for those with luxury or vintage vehicles for which spare parts are expensive and difficult to get and as a result, the mechanic charges are higher as well. Purchasing a zero depreciation policy gives you a peace of mind that comes with the added security.

Bumper to Bumper Insurance premium price

All good things come at a cost and the bumper to bumper insurance policy is no exception. In exchange for complete protection, you have to pay a premium that is around 20% higher than that for a standard Car insurance policy. However, for inexperienced drivers, first time buyers and luxury car owners, the cost is justified as they gain complete coverage in case of an accident.

Top 10 bumper to bumper insurance providers

The top insurance providers who offer bumper to bumper insurance policies are –

  1. United India Insurance Company
  2. Bajaj Allianz General Insurance Company
  3. Edelweiss General Insurance Company
  4. Go Digit General Insurance Limited
  5. Chola MS General Insurance Company
  6. Kotak Mahindra General Insurance Company
  7. HDFC ERGO General Insurance Company
  8. Royal Sundaram General Insurance Company
  9. Tata AIG General Insurance Company
  10. Shriram General Insurance Company

Bumper to Bumper Insurance inclusions and exclusions

Bumper to bumper insurance covers all body damages to the car ( parts that are made of rubber, fiberglass, plastic, nylon, and metal). There is a limit on the number of claims that can be filed, which varies from insurer to insurer. Wear and tear of brake plates, clutch and tyres is not covered by the policy. There are certain circumstances in which the policy becomes void such as when the driver does not have a valid licence, driving under the influence of alcohol, private vehicle being used for commercial purposes, reckless driving etc.

Car depreciation impact on Bumper to Bumper Insurance

Depreciation has no impact on the bumper to bumper insurance policy. In the event of an accident, the full cost of repair and replacement will be paid out. That is why this is also called a zero depreciation policy, in fact, some insurers will even cover the cost of roadside assistance and tow services.

How to apply for Bumper to Bumper Insurance

To buy bumper to bumper insurance online, these are the steps you should follow:

  1. Visit the desired insurer’s website
  2. Enter the vehicle registration number and details such as make, model and date of purchase
  3. Select the required cover/add-on
  4. Pay the premium and receive the policy document in your email

To purchase insurance offline, you can approach an insurance agent or if you have purchased a new vehicle, the dealer will sell a policy to you. Provide the required documents to the insurance agent and agree upon a premium price. Once you pay, the agent will send you the policy documents when they are processed, which can take a few days.

Factors to be considered while applying for Bumper to Bumper Insurance

Since bumper to bumper insurance requires a higher premium, it is important to weigh the costs when buying the policy. There is also an age limit beyond which insurers will not offer this policy for a vehicle. The number of claims that can be filed is also restricted. In addition, owners must also consider the availability of spare parts and service centers for their vehicles. The other limitations that come with a nil depreciation policy are certain exclusions that will render a claim as rejected but these are standard across most insurance policies.

Bumper to Bumper Insurance for a used cars

You can purchase a bumper to bumper insurance policy on a used car but there will be some restrictions on the age of the vehicle and the number of kilometers it has travelled. If you are purchasing a car from an owner who has already availed this policy, then it can be transferred to you on payment of an administrative charge.

Difference between bumper to bumper insurance and comprehensive car insurance

For a comprehensive policy, the premium amount is lower but you will have to pay some part of the spare part value since the insurance will only reimburse the depreciated value of the part.

Does bumper-to-bumper insurance cover body damages?

All body damages are covered by the nil depreciation policy. All body parts of the car which are made of rubber, fiberglass, plastic, nylon, and metal are included in this. You will also have to spend out of your own pocket for some part of the repair cost. Unlike this, the bumper to bumper insurance policy covers the full cost of repairs and replacement but the premium is slightly higher.

Do bumper to bumper warranties cover batteries?

Batteries are not covered under the bumper to bumper add-on. Other parts that are not covered include tyres, bio-fuel kit, gas kits and the mechanical breakdown of the car.

Does bumper to bumper insurance cover the engine?

Damages to the engine are not covered by this policy, however, there is a separate add-on that can be availed for the same.


Q1. Does bumper to bumper insurance cover transmission?

Ans. No, transmission is not covered but an add-on can be purchased,

Q2. Can bumper to bumper insurance be claimed if I cause damage to my car?

Ans. As long as it is ascertained that there was no malice, you can claim reimbursement for the damage you cause to your vehicle.

Q3. Is the car’s bumper covered under insurance policy?

Ans. Yes, the car’s bumper is covered even under the comprehensive insurance plan.

Q4. What is the process to raise a claim?

Ans. Inform the insurer immediately and get the vehicle repaired at an authorized service center after it has been inspected by the surveyor.

Q5. Is it worthwhile to claim the policy for scratches?

Ans. Since there is a limit on the number of claims that can be made in a time period, it is advisable to refrain from filing for reimbursement for tiny scratches and ensure that your policy can be used for major damages.