Bumper-to-bumper car insurance, also known as zero depreciation cover, is an add-on that helps reduce the amount car owners pay for depreciation on eligible parts after an accident. Standard car insurance policies may deduct depreciation from the value of certain parts when settling a claim, leading to lower payouts.
This additional cover can result in lower out-of-pocket expenses and a higher claim amount compared to a standard policy. For example, if a repair costs ₹10,000 and the insurer applies 50% depreciation, a standard policy would pay ₹5,000, leaving the car owner to pay the rest. Bumper-to-bumper insurance covers this depreciation amount.
The value of bumper-to-bumper cover depends on individual circumstances. It is often considered useful for new or expensive cars, which tend to have costly parts, and for frequent drivers who have increased exposure to accidents. However, it may not always be necessary, especially for older cars, those driven infrequently, or if the owner is comfortable paying a higher share of repair costs.