Bumper To Bumper Car Insurance

Let’s say your car gets into a minor accident and you’re shocked to learn that your insurance won’t fully cover the repair. Why? Because regular policies deduct depreciation on parts like plastic, rubber, and fibre. That’s where bumper to bumper car insurance, also known as Zero Depreciation cover, comes in.

This add-on is designed to give you near-full coverage during claims by skipping depreciation cuts on most parts. So when your car is in the workshop, you don’t end up paying a big chunk from your own pocket. Sounds fair, right?

But it’s not a blanket cover. It won’t apply if your car is stolen or completely damaged, because those are settled based on the Insured Declared Value (IDV). It also doesn’t cover engine repairs unless you choose a separate add-on like Engine Secure, and some policies might limit the number of zero depreciation claims you can make in a year.

If you’re considering this, TATA AIG makes it easy. You can get the bumper to bumper cover as an add-on with both Comprehensive and Standalone Own Damage car insurance plans. What makes TATA AIG stand out is the simple claims process, a wide network of cashless garages, and clear policy terms so you always know what’s covered and what’s not.

Buying or renewing online takes just a few clicks. And once you’ve got this cover in place, even small dents won’t come with big repair bills.

When you opt for the Tata AIG Bumper to Bumper Car Insurance add-on, you gain several valuable benefits. Below are the key advantages:

1) Bid Farewell to Your Car Repair Woes

There’s a common misunderstanding that all car insurance policies cover the entire cost of repairs. In reality, most policies come with a deductible, meaning the car owner must pay a portion of the repair expenses. However, with the Bumper to Bumper Car Insurance add-on, you can claim most of the repair expenses for your car, and the replacement of the insured car parts (subject to exclusions). This reduces your financial burden and provides peace of mind, as you don’t need to worry about depreciation of eligible parts.

2) Keep Your Car Ageless with Depreciation Waiver

As your car ages, so does the value of its parts. Over time, the depreciation of parts reduces the amount you can claim from the insurer for repairs or replacements. However, with Bumper to Bumper Insurance, you can negate depreciation on eligible parts for the first two claims per policy year. This means you’ll receive a higher payout for repairs, preserving the value of your car. Keep in mind that certain car components like engine parts, tyres, batteries, and glass are typically excluded from the coverage.

3) Luxury or Sports Car Owners – Secure Your Vehicle

If you own a luxury or sports car, the cost of repairs and replacement of high-end parts can be very expensive. The Bumper to Bumper Car Insurance add-on is highly recommended for luxury car owners to protect against potentially high repair costs. However, the add-on is typically available only for cars that are less than 5 years old. For older vehicles, the add-on may not be available, or the coverage may be limited

Below are some of the prominent features of the zero depreciation policy:

The policy provides coverage for the nylon, rubber, plastic and fibreglass components.

A policy does not provide coverage for everyday wear and tear or uninsured parts.

This benefit can be availed at the time of purchasing or renewing a car insurance policy.

Under bumper-to-bumper insurance, individuals can claim the total amount. However, in a standard policy, 0 to 35% car depreciation rates are applicable.

This car insurance zero depreciation policy is beneficial for new cars or cars within the age of 5 years.

The claim limit under this add-on or rider is limited. It means policyholders can make limited claims during their policy tenure.

Under the zero depreciation policy, damages or loss to uninsured components such as gas kits, tyres and more are not covered.

Policyholders need to renew this cover every year to enjoy its benefits.

A bumper-to-bumper car insurance price is higher than a comprehensive car insurance policy. Further, the insurance does not offer coverage for batteries, tubes and tyres of the vehicle.

This car insurance with bumper-to-bumper cover is only available with a comprehensive car insurance plan for four-wheelers up to 5 years old.

Besides this, while filing a claim, the policyholder has a limitation as per the policy term. Beyond that, they can not file a claim.

The Bumper to Bumper Car Insurance add-on from Tata AIG provides comprehensive coverage for your car. Here's what is included:

1. Accident Damage (Zero Depreciation)

In the event of an accident, the Bumper to Bumper Insurance covers full repair costs without deducting depreciation for eligible parts like body panels, lights, bumpers, and mirrors. This means you don’t have to pay for the depreciation of parts—something that normally applies in standard policies.

2. Fire Damage

If your car gets damaged due to fire, including explosions or self-ignition, this add-on covers all the related repair costs, minus the exclusions.

3. Natural and Man-Made Disasters

Your Bumper to Bumper Insurance will also cover damage caused by natural disasters like earthquakes, cyclones, storms, and floods. In addition, man-made disasters such as riots, strikes, and terrorist activities are also included in the coverage.

4. Theft and Total Loss

If your car is stolen or declared a total loss, the Bumper to Bumper add-on allows you to receive the full value of the car for covered parts. However, the total loss claim will be based on the Insured Declared Value (IDV), which accounts for depreciation.

While this add-on offers great coverage, here’s what’s not included:

1. Third Claim During the Policy Period

The zero depreciation benefit applies to only the first two claims during your policy term. Any third claim and beyond won’t be eligible for the depreciation waiver, although the claim itself will still be processed.

2. Damage Due to Driving Under the Influence

If your car is damaged while you're driving under the influence of alcohol or drugs, the Bumper to Bumper Insurance does not cover such damages.

3. Misuse of the Vehicle

If your car is being used for a purpose other than private use (for example, commercial use), the add-on will not cover any resulting damage.

4. Exclusions on Certain Car Parts

This add-on does not cover parts like engine, tyres, batteries, and glass, which are usually excluded under standard policies. If you need coverage for these, you must buy additional add-ons like engine protection or glass protection.

5. Claims Against Expired Policies

If your policy has expired, the Bumper to Bumper Insurance will not cover any claims. Always make sure your policy is active to take full advantage of this add-on.

If you are wondering what the difference between a Comprehensive Car Insurance Policy and a Bumper to Bumper Car Insurance add-on is, the following table sheds light on the variances between the two.

Car depreciation refers to the decrease in the value of a car over time. The car value decreases because of regular use. Car depreciation is generally calculated at the time of claiming an insurance policy or renewing it. It directly affects the claim amount and insurance premium.

However, a car insurance zero depreciation policy, a "bumper-to-bumper" or "comprehensive" policy with zero depreciation cover, is a type of insurance that provides complete coverage for the cost of repairs or replacement of car parts without factoring in depreciation.

As per the Indian Motor Tariff, a fixed car depreciation rate can be applied to car components and parts. By considering that, the insurer can decide on IDV, which helps in settling the claim in comprehensive car insurance. Below is the decided car depreciation rate per year:

1. Depreciation Rate Based on Vehicle Age for Calculating IDV and Claims (IRDAI Standard)

2. Depreciation Rates for Different Car Parts and Components (Common Industry Standards)

This car depreciation rate is helpful at the time of claim. The insurance provider applies the depreciation rate for damage caused to the vehicle part and compensates up to IDV.

However, there is a difference between the actual market part and the depreciated part. That difference is borne by the policyholder at the time of making a claim.

The car insurance premium for your Tata AIG Bumper to Bumper cover is affected by certain factors, which are as follows:

1. The make and model of your car: The make and model of a car are akin to the body of a human being in the sense that both constitute fundamental diverging elements for the life of their owners. If you own a high-end car, for instance, a sports car or a luxury car, the high prices of their components and repair/replacement thereof combined with the lower availability of service centres and expert technicians lead to a high premium for their car insurance policies.

The premium for a Bumper to Bumper Car Insurance is no exception to this rule. A premium car is likely to attract a higher premium for a bumper to bumper cover than a hatchback or an SUV.

2. The age of your car: The Bumper to Bumper Car Insurance add-ons is also referred to as a 'Zero Depreciation' or 'Nil Depreciation' cover because of its feature of negating the impact of depreciation for a car insurance claim.

Since the depreciation of a car is directly related to its age and usage, the older a car, the higher the premium that you shall have to shell out for its bumper to bumper cover. It is important to note here that you cannot purchase bumper to bumper insurance for cars that are older than 5 years.

3. The geographical location of your car: As is the case with a comprehensive and standalone own-damage car insurance policy, the premium of your Bumper to Bumper Insurance add-on is also affected by the geographical location of your car. Cities with a high magnitude of traffic as well as regions with rough terrains usually entail a high car insurance premium for their inhabitants.

There are several reasons why you should opt for a Bumper to Bumper Car Insurance add-on cover. Here are some of these factors:

1. It enhances the coverage of your car insurance policy: A Bumper to Bumper Car Insurance cover drastically enhances the coverage of your car insurance policy. Without this cover, you only get coverage for the repairs and replacement of your car's components after the consideration of the depreciation accumulated on said parts. However, this cover allows you to receive the entire amount of the repair or replacement expenses without any deductions for depreciation.

2. It negates the impact of depreciation for your car insurance claim: While there is no insurance cover that can stop the value of your car's components from diminishing due to age and depreciation, a Bumper to Bumper cover negates the impact of said deterioration at least as far as your car insurance claims are concerned. This way, you can bridge the gap between the actual expenses incurred to repair or replace your car's parts in the wake of any damages and the claim amount received against a policy with no Bumper to Bumper Cover.

3. It helps you preserve your savings: Since the repair and replacement of the components of your car can be a costly business, particularly if you happen to own a premium car, it is likely that said expenses may force you to delve into your household budget or, worse yet, your savings. To prevent such a situation from occurring, you must choose a Bumper to Bumper Insurance cover along with your base car insurance policy.

Before you purchase a Bumper to Bumper Car Insurance policy, it’s important to keep a few things in mind. Here’s what you should consider:

1. Eligibility Based on Age

Typically, you can get Bumper to Bumper Insurance for cars that are less than five years old. However, some insurers might allow it for vehicles up to 10 years old, depending on the car and insurer’s policies. So, always double-check with your provider to make sure your car qualifies.

2. What’s Covered and What’s Not

While Bumper to Bumper Insurance is great for covering a lot of your car’s parts, glass parts, engine components, tyres, batteries, and wear-and-tear items are usually not included. But don’t worry, you might be able to add glass protection or other coverage options if needed. Be sure to review the full list of what's covered and excluded before committing.

3. The Premium

The cost of Bumper to Bumper Insurance depends on a few things, like the age of your car, its make and model, and where you live. Other factors like the Insured Declared Value (IDV), claim history, and vehicle usage (personal or commercial) will also affect your premium. The higher the IDV, the higher the premium, so it's important to choose wisely.

4. How Many Claims Can You Make?

Some insurers limit bumper-to-bumper claims to two claims per policy. But, this can vary. A few insurers don’t limit the number of claims, though they might reduce the zero depreciation benefit or raise your premium after a certain number of claims. Be sure to ask your insurer for the specifics before you buy.

5. It’s an Add-On, Not a Standalone Policy

Here’s something to keep in mind: Bumper-to-bumper insurance isn’t a standalone policy. It’s an add-on that you’ll need to add to a comprehensive or own damage policy. So, you’ll need that base policy first!

6. Is It Mandatory?

In India, bumper-to-bumper insurance is optional. It’s not legally required, although it’s a good idea to have it for covering the cost of repairs. There have been discussions about it possibly becoming mandatory in the future, so it’s worth keeping an eye on the latest developments.

Several factors influence the cost of bumper-to-bumper car insurance. Here’s a quick breakdown to help you understand what affects your premium:

1. Age of Vehicle

Bumper-to-bumper coverage is usually available for cars up to five years old. New cars have lower premiums because they have a higher Insured Declared Value (IDV) and lower breakdown risks. As your car ages, its IDV drops, reducing the premium and maximum claim amount. Vehicles over five years old may not be eligible for this add-on.

2. Location of Vehicle Owner

Where you live impacts your premium. Metro cities like Mumbai, Delhi, and Bangalore typically have higher premiums due to more accidents, theft, and costly repairs compared to smaller towns or rural areas.

3. Model and Make of Vehicle

Luxury, sports, or expensive cars have higher premiums due to the cost of spare parts and specialized repairs. Insurers consider the price of parts, repair complexity, and the car’s vulnerabilities when setting the premium.

4. Insured Declared Value (IDV)

The IDV is the current market value of your car. A higher IDV means a higher premium, as it represents the maximum claim amount the insurer will pay.

5. Claim History and No Claim Bonus (NCB)

Your claim history matters. Multiple claims can increase your premium. On the other hand, a No Claim Bonus (NCB) earned from claim-free years gives you a discount, lowering your premium.

6. Vehicle Usage and Registration Type

Commercial vehicles or those used for business attract higher premiums because of higher risk. The location where your car is registered may also affect the premium due to regional risk factors.

7. Policy Terms and Deductibles

Higher deductibles (the amount you pay out-of-pocket) can lower your premium but increase your financial responsibility during a claim. The specific terms of the bumper-to-bumper add-on, such as coverage limits, also influence costs.

8. Add-on Covers Selected

Adding extras like engine protection, roadside assistance, or zero depreciation will increase your premium. More add-ons = higher premium.

9. Online Calculation Tools

Online calculators can give you an estimated premium based on details like car age, model, and location. However, for an accurate quote, always get a detailed estimate directly from the insurer.

Although having Bumper to Bumper Car Insurance is not yet mandatory in India, it is certainly advisable to purchase this cover, particularly in light of the extent to which it enhances your layer of financial security with regards to your car. In an August 2021 verdict of the Madras High Court, Bumper to Bumper Insurance was made mandatory for all vehicles sold after September 1, 2021.

However, following an intervention from the General Insurance Council, seeking clarity on the order and the implications thereof, the Madras High Court has modified the aforementioned order. The court has now decided to leave the decision of making a Bumper to Bumper Cover mandatory to the Indian Parliament.

The fact that the Madras High Court has recognised the significance of Bumper to Bumper Car Insurance is a reflection of its importance and, perhaps, a sign of the cover becoming legally mandatory in the near future. You must not, however, wait for that and go ahead with adding this cover to your Tata AIG Car Insurance Policy.

By adding a Bumper to Bumper Cover to your comprehensive car insurance policy or standalone own-damage car insurance policy, you can enjoy extensive financial protection for your car against a wide gamut of adverse events, including total damage events such as theft. And the best part is that the claim amount you shall be eligible for will not be any the lesser because of the depreciation accumulated on the components of your car.

If you are still on the fence about buying Bumper to Bumper Car Insurance, you must consider its advantages and feasibility, which far outweigh the additional cost it entails. It is always better to be safe than sorry, and the Tata AIG Bumper to Bumper Insurance add-on is an easy way to ensure that the repair/replacement expenses and other risks (such as theft) pertaining to your car do not end up being crippling financial nooses for you.

You can purchase Tata AIG's Bumper to Bumper Car Insurance add-on cover by following a few simple steps, which have been discussed below.

1. Visit the Car Insurance page on our official website.
2. Enter your car's registration number and select 'Get Price' for a new car insurance policy and 'Renew' if you already have a car insurance policy with us.
3. Enter the required personal details on the following page, including your email address and mobile number. If you already have a policy with Tata AIG, these details will be fetched by our database.
4. Enter the accurate and latest 'Insured Declared Value' for your car.
5. Submit the details for your car insurance claims and accumulated 'No-claim Bonus' (if any) for the year preceding the year of policy purchase.
6. Click on 'Get Price' to receive a quote for your Tata AIG Comprehensive Car Insurance Policy or Standalone Own Damage Car Insurance Policy (as selected).
7. Select a plan which offers bumper to bumper or zero depreciation cover
8. If you think that the quote fetched by our car insurance premium calculator is feasible for you, you can go ahead and make the payment of the premium online and complete the purchase/renewal process.
9. You will find a copy of your Tata AIG Car Insurance Policy, including a Bumper to Bumper Cover, in your email inbox. You can also request the delivery of your policy documents in your WhatsApp inbox.
10. That's it! You will have secured your car with the Tata AIG Bumper to Bumper Car Insurance add-on. Just remember to keep renewing the insurance for your car on a timely basis.

• Visit the TATA AIG Website: Log in to your policy account online.

• Enter Car Details: Input your vehicle registration number to access your existing plan.

• Select Add-ons: Ensure bumper to bumper insurance is selected while renewing.

• Review Premium: Check the updated car insurance bumper to bumper premium cost.

• Make Payment: Complete the transaction online via card, net banking, or UPI.

• Receive Policy: The renewed bumper to bumper car insurance policy will be emailed to you.

• Inform Insurer Immediately: Report the incident affecting your car without delay.

• Submit Necessary Documents: Claim form, registration papers, driving licence, and FIR (if required) are essential for bumper to bumper insurance coverage claims.

• Vehicle Inspection: Allow the surveyor to assess damages to your vehicle.

• Repair at Network Garage: Use a garage under vehicle insurance bumper to bumper tie-ups for cashless repair.

• Claim Settlement: Your bumper to bumper car insurance will process full settlement (as per terms) without factoring in depreciation.