If you are someone in search of the right motor insurance policy for your car, you have likely come across terms like comprehensive car insurance and bumper-to-bumper cover during your research.
Is comprehensive insurance the same as bumper-to-bumper insurance? No. Comprehensive insurance and bumper-to-bumper insurance are two different types of coverage for your vehicle.
In this blog, we will compare bumper-to-bumper insurance vs comprehensive insurance policies to understand both coverages better.
Comprehensive Car Insurance vs Bumper-to-Bumper Insurance: Meaning
What is Comprehensive Car Insurance?
Comprehensive car insurance is a policy type that offers financial coverage against own-damage, third-party liabilities as well as a personal accident cover. You can secure your vehicle against damages or theft and also get protection against liability-only claims.
You can further enhance your coverage with multiple add-ons, such as roadside assistance, return-to-invoice, bumper-to-bumper, etc.
What is Bumper-to-Bumper Insurance?
Bumper-to-bumper is an add-on available with comprehensive and standalone own-damage car insurance that covers the full cost of repairing or replacing car parts without considering depreciation.
Also called “Zero Depreciation Cover” or “Nil Depreciation Cover”, this add-on ensures that the policyholder receives the entire claim amount without any deduction for the car’s depreciated value.
It typically applies to new cars and offers enhanced financial protection by ensuring the insured vehicle’s value is maintained over time.
So, the first major difference in comprehensive insurance vs bumper-to-bumper insurance is that the former is an insurance policy for your car, while the latter is additional coverage to a car insurance policy that provides extra protection to your vehicle.
Difference Between Bumper-to-Bumper and Comprehensive Insurance
Criteria for Bumper-to-Bumper vs Comprehensive |
Comprehensive Car Insurance |
Bumper-to-Bumper Insurance |
Meaning | - Provides extensive coverage against various risks.
- Includes third-party damage. | - An add-on to own-damage and comprehensive insurance.
- Maintains car’s value over time by covering depreciable parts. |
Coverage | - Covers damage to your vehicle and third-party property.
- Protects against natural (fire, flood) and man-made calamities (theft, riots). | - Covers all external parts of your vehicle (glass, fibre).
- Eliminates depreciated value in claims for accidents. |
Value Consideration | - Considers car’s condition, age and market value for repair/replacement costs. | - Limited to a specific time/mileage.
- Expires after crossing the set limit. |
Cost of Premium | Higher premium due to all-round coverage | Addition of bumper-to-bumper add-on increases the overall policy premium |
Overall Savings | Covers replacement and repair costs, including depreciation. | Saves on costs by excluding depreciation in repairs. |
Applicable Age of Car | Cars up to 15 years old | Cars up to 5 years old |
Should You Opt for Bumper-to-Bumper Car Insurance Add-on?
So, by now, you are better informed about comprehensive vs bumper-to-bumper car insurance.
It is recommended that you opt for bumper-to-bumper add-on cover with your comprehensive car insurance if:
You have newly purchased a car.
You own a luxury car.
You want to maintain the value of your car.
You are new to driving.
You don’t have a dedicated car parking area.
Adding a
bumper to bumper car insurance coverage will improve how well your car is protected.
Get Enhanced Car Protection with Optimised Vehicle Insurance
There are multiple reasons to opt for a
car insurance policy. At Reliance General Insurance, we ensure that you and your car are financially covered in the best possible way.
Our
comprehensive car insurance features beneficial add-ons, including Nil Depreciation, Engine Protect, NCB Retention, and more coverage options. We understand how invaluable your car is and want to help you maintain its value over time.
Conclusion
Since a vehicle is susceptible to damages and risks, a basic motor insurance policy may not prove to be financially helpful. You need to optimise your insurance coverage to ensure that you don’t end up losing a hefty amount when faced with unforeseen events. The choice is yours to make, but it is pointless to turn a blind eye to the need for an optimised car insurance policy.
Frequently Asked Questions
How do I check if my motor insurance includes bumper-to-bumper coverage?
Check your policy document and look for either “Nil Depreciation Cover” or “Zero Depreciation Cover”. If it is mentioned in your policy, then you have purchased this add-on option.
Is bumper-to-bumper add-on included in a comprehensive car insurance policy?
No, it is not. The bumper-to-bumper add-on is optional, and you need to add it to your comprehensive policy to enjoy its benefits.
Is it worth investing in comprehensive insurance coverage for my car?
Yes, absolutely. The wide coverage that this policy offers, along with different add-on options, can help protect you financially in case of unexpected situations.
