We pool so much of our savings to buy our dream car. When we buy it, it is legally necessary to get vehicle insurance for the car. This is necessary to safeguard us against any financial liabilities arising out of damage or loss of the vehicle. When buying car insurance, it is necessary to understand certain terms related to it, so that you can choose the right coverage for your vehicle.
It is noted that most people have no clear idea regarding comprehensive insurance vs. bumper-to-bumper insurance. So, here we will check the difference between these two types of coverage.
Difference between bumper to bumper and comprehensive insurance
Comprehensive insurance covers a variety of risks, including the financial liabilities arising out of accidents caused to third parties by the insured vehicle and the financial loss due to damage to the car by natural or manmade calamities and theft of the vehicle. However, it only provides a part of the coverage because depreciation is considered when resolving vehicle damage claims. This means the compensation we would receive will be less considering the depreciation of motor parts. This is where bumper-to-bumper add-on comes to our rescue.
Bumper-to-bumper insurance, sometimes called zero depreciation or nil depreciation insurance, provides complete coverage for your car by paying out 100% of the claim value without considering the vehicle's depreciation.
Here is a comprehensive Vs bumper-to-bumper car insurance table for your easy understanding.
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Parameters
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Comprehensive insurance
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Bumper-to-bumper insurance
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Coverage
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Considers depreciation of parts
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Does not consider the depreciation of parts
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Age of car
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Up to 15 years
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Up to 5 years
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Type of car
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All types
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All types
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Claims
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No limit on claims
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Unlimited claims available
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Protection against theft
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Available
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Available
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Airbags
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Partial
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Full
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Compensation for components
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Covers but depreciation rates applicable
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Covers without considering depreciation
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Comprehensive vs bumper to bumper - Which one to consider?
Those looking for comprehensive coverage for their car and stable finances in the event of damages or loss may consider comprehensive car insurance. This covers financial liabilities arising from third-party damages and damages to own car. However, when making a claim, the insurer will reduce the compensation amount, considering the depreciation of vehicle parts.
If you want a full claim amount without any deduction of the depreciation value from the coverage amount, consider a bumper-to-bumper add-on with your basic car insurance. Owners of luxury or premium cars would significantly benefit from this choice, as insurance offers complete protection against minor dents and expensive repairs.
Both types have advantages. Knowing the difference between bumper-to-bumper and comprehensive insurance is necessary to choose the best one for our car.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.