Mr. Anuj was shocked when he received only 70% of the car repair cost as compensation. He was irritated to know the fact that the comprehensive car insurance bought by him last year was not a complete protection plan after all. His insurer has reimbursed him only a part of repair cost after deducting depreciation value. In this case, he could have received the entire cost as compensation if he had opted for bumper to bumper car insurance coverage.

Bumper to bumper insurance policy is also known as zero depreciation insurance policies which are gaining lot of popularity in India in the recent years. Most of the people prefer going for bumper to bumper insurance plan with the little extra premium rather than a normal no-frills comprehensive plan. Then, let’s understand what exactly is bumper to bumper insurance, how it differs from a standard plan and its affect on insurance claim.

Understanding Bumper to Bumper Insurance/Zero Depreciation Insurance Plan

As the name suggests, this particular policy offers a comprehensive coverage without considering the depreciation value. Whenever you make a claim under this plan, insurance company pays you compensation for entire the entire cost for any damage caused due to an accident or collision. Like any other policy, this plan also has some exclusion. Below are few things that are not covered by bumper to bumper insurance

  • Any damage in the vehicle engine due to oil leakage or water logging etc
  • Cost involved in changing the oil or any other cost of consumables are not covered under the plan
  • Generally, any damage to batteries and tyre are also not covered unless its claim for accident case.
  • Consequential losses like mechanical and electrical breakdowns unless you have taken extra add-ons like for example engine protector rider for the same.

Affects on Car Insurance Claims

  • Bumper to bumper insurance offers 100% coverage for plastic parts like bumper and fender to door panels. Your standard insurance plan may factor in depreciation of up to 50% for such parts.
  • 100% coverage is offered in case of damage to wooden and metal parts under zero depreciation plans. On the other hand, standard comprehensive plan compensates after deducting depreciation value as per year wise depreciation schedule. That is 5% for the 1st year, 10% for the second year, 15% for 3rd year, 25% for 4th year and 35% for 5th year.
  • In case if you place a claim for paint cost, your standard plan can compensate only after marking in 50% of the cost as depreciation. However, if you opt for bumper to bumper insurance you can receive 100% compensation for such claims
  • In case of claims placed after an accident, 100% compensation is offered for battery and tyres and the fibre items of your four wheeler under bumper to bumper plan. On the other hand, your normal comprehensive plan can offer only 50% of compensation for such claims after deducting the cost of depreciation

Important Points to Remember

Every insurance plan comes with its own pros and cons. Bumper to bumper plan is no exception. Few of its drawbacks are listed below.

  • Bumper to bumper policy puts a restriction on number of claims that you can make in a year.
  • It’s only available for new cars till the age of 5 years

Also, remember nothing comes for free. To get the greater coverage you will have to shell out more on car insurance premiums. For instance, if you own a mid-segment sedan, you might have to pay Rs. 4000-5000 as extra premiums for availing bumper to bumper coverage.


To sum it up, bumper to bumper insurance can significantly affect your car insurance claims especially if you your car is brand new. As it offers greater coverage without factoring in depreciation cost, it’s completely worthwhile to have bumper to bumper coverage at least for the first five years of your new car. It’s a highly recommended car insurance plan for today’s generation, especially for those who buy costly and high-end cars.