What is the Bumper To Bumper Add-On Cover?

Published On Jan 03, 2021 12:00 PM By InsuranceDekho

Confused what the bumper to bumper add--on cover offers? Read this article to clear all your doubts.

Getting your car insurance is not only a legal compulsion but also a wise decision. A comprehensive car insurance policy is a cover that insures you against all third-party liabilities as well as against own damages sustained by your car in any road accident, theft, fire, natural/man-made calamity or any other unfortunate event.

However, a comprehensive plan too at times falls short to provide you an exhaustive coverage of your car. For instance, the cost of depreciation, consumables, engine replacement etc are not covered under a standard comprehensive car insurance policy. Thus, car insurance companies offer a number of add-ons (extra covers) with a comprehensive car insurance policy which helps enhance the coverage of your plan. One of the most popular and most opted add-ons is bumper to bumper cover which insures you against the depreciation cost of your car.

What is Car Depreciation?

Depreciation is a process of continuous devaluation of a commodity over its age due to wear and tear. Like any other object, your car also depreciates in value i.e., loses its value with time. Depreciation not only affects your car’s market price but also affects the claim amount that you get from your insurer at the time of claim settlement.

This is because by default, a car owner is liable to bear the cost of depreciation of his/her car and its parts. Thus, at the time of claim settlement, your insurer deducts the amount of applicable depreciation from your claim amount. This is when a bumper to the bumper add-on, also known as zero depreciation cover and nil depreciation, comes in handy.

Bumper to Bumper Car Insurance Cover

When you purchase a bumper to bumper cover you shift the liability of paying for the depreciation of your car at the time of insurance claim settlement from yourself to the insurer.

The premium of a bumper to bumper cover depends on the Insured Declared Value (IDV) of your car, its model, make, variant and age. Bumper to bumper cover is one of the most cost-effective add-on covers as the premium which you pay for it is way lesser than what costs you as depreciation value of your car and its replaced parts.

Bumper to Bumper Cover vs Normal Car Insurance

Age of Car

Depreciation Rate Without Zero Depreciation Cover

Depreciation Rate With Zero Depreciation Cover

Under 6 months



6 months to 1 year



1-2 years



2-3 years



3-4 years



4-5 years



5-10 years



Above 10 years



Part of Car

Depreciation Rate Without Zero Depreciation Cover

Depreciation Rate With Zero Depreciation Cover

Paint work / Rubber / nylon / plastic parts, tires and tubes, batteries and airbags parts



Fibre glass parts



Glass parts



General Conditions for Bumper to Bumper Cover

  • Generally, insurers allow a maximum of only 2 claims against a bumper to bumper cover during the policy period. However, the actual number of allowed claims may vary from insurer to insurer.
  • It is not applicable in case of a constructive total loss, total loss and theft of the insured's vehicle.

Who Should Buy Bumper to Bumper Cover?

Bumper to Bumper car insurance add-on cover is advisable for all cars aged up to 5 years, however, it is more advisable for the following:

  • For individuals whose car is older than a year. This is because cars under 1 year of age suffer negligible depreciation and hence the factored depreciation amount while sanctioning claim is not much to bother.
  • If the prices of several parts of your car are exceptionally high. This happens in the case of luxury and imported cars.
  • Car owners who live in areas where the probability of road accidents is higher.
  • People who are learning or have recently learned driving.
  • New car owners.

Benefits of Purchasing a Bumper to Bumper Cover

  • Claim Maximum Amount: With the bumper to bumper cover the insurance provider mitigates the depreciation rate of the car, hence the insurance claim amount is much higher.
  • Affordable Price: Though the add-on cover can seem steep when purchasing the cover. However, considering the payback you receive during claim settlement the cover is very affordable and has significant returns.
  • Lower Out of Pocket Cost: Without this cover, the insurance holder is forced to pay the rest of the amount from their own hard-earned money. However, with the cover, you can make savings in the long run


In a nutshell, the bumper to bumper cover or the zero depreciation cover is an add-on cover that is available for cars that are not older than 5 years along with a standalone own-damage car insurance policy or a comprehensive plan. There are also a number of other add-on covers that may also come equally handy. Some of the useful ones include the roadside assistance cover, the passenger cover, the consumables cover, the engine protection cover and the return to invoice cover. When purchasing or renewing insurance make sure to do it online, it is the simplest way. With a few clicks, you can compare the different car insurance companies, the quotes they offer and their network of cashless garages. The variety of policies to choose from can also at times be confusing. Moreover, it is extremely important for you as a customer to make an informed choice. Hence, we have put together articles on car insurance that will help build your basic knowledge of the subject. Click here to read them.

For further reading:

How to Convert from Third Party to Comprehensive Car Insurance Policy

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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